Water damage is costly to both homeowners and insurance companies. It is estimated that the cost of household water damage in California, alone, exceeded $500 million for 2002. While the number of water-related claims varies year to year, the average amount paid for such claims increased steadily from $2,577 in 1988 to $3,646 in 2002.

The high cost of water damage spotlights the importance of thorough investigation of the causes and origins of water losses. Understanding how moisture enters buildings and causes damage can be a challenge, as well as the most interesting aspect of a building inspection.

Determining whether a water-related claim is covered by the policy or is a building defect requires attention to detail, as well as special equipment. Often, water sources may be hidden behind walls. It also is common to find two or more water intrusion sources in the same location. Determining the primary source of water entry and the comparative value of each loss, while dealing with anxious insureds, adds to the challenge.