Polybutylene, galvanized and other pipes insurers dislike

Insurers dislike polybutylene most, then old galvanized steel supply lines, orange-and-blue Kitec, and aging cast iron drains, because they fail in ways that flood houses. A leak from any of them is usually a covered water loss on a standard policy, but the pipe itself is not. The practical problem is insurability: some companies decline a home with these pipes, others offer a policy that comes with a repipe deadline, a water damage limit or an exclusion.

This guide uses the ISO HO-3 (form HO 00 03 05 11) for coverage and public rules as examples of underwriting. Each insurer sets its own guidelines, so ask yours.

Why underwriters care about pipes

Water damage is the second most frequent cause of homeowners claims, after wind and hail. Based on ISO data published by the Insurance Information Institute, water damage and freezing produced 1.50 claims per 100 house-years from 2019 through 2023, with an average payment of $15,400 per claim. A pipe that is known to fail makes that arithmetic worse, so insurers ask about it up front.

The question is usually on the application, and for older homes it is on an inspection form. The sample four-point form that Citizens Property Insurance Corporation publishes for Florida, for instance, asks the inspector to check the pipe type (copper, PVC or CPVC, galvanized, PEX, polybutylene or other), whether the system is original, partly re-piped or completely re-piped, the condition of the water heater and fixtures, and any sign of an active or prior leak. See four-point inspections for older homes for how those inspections work.

The pipes that get flagged

Polybutylene

The history matters because it explains how long insurers have disliked it. In 1995 the Tennessee state court in Cox v. Shell Oil approved a national class settlement that required Shell and Hoechst to contribute $950 million to replace eligible leaking polybutylene systems and reimburse the property damage they caused, according to the Fifth Circuit's December 19, 2003 opinion in *Richard v. Hoechst Celanese Chemical Group*. A companion Alabama settlement required DuPont to contribute further sums toward repair and replacement. Those claims programs ended years ago, so do not assume money is available if you find PB in your walls.

Citizens gives a public example of how a state-backed insurer treated it. A bulletin dated April 28, 2022 (Rule 206.B) says new-business HO-3 and HO-8 risks over 20 years old with polybutylene piping are not insurable by Citizens (Citizens). Citizens marks that page as archived and says current rules are in its underwriting guidelines, so treat it as an illustration and check the live manual. Private insurers have their own rules, and many are stricter.

What your policy pays when these pipes leak

The ISO HO-3 excludes wear and tear, deterioration, and rust or other corrosion on the dwelling. It also carries an exception that gives back coverage for loss from the accidental discharge or overflow of water from within a plumbing system on the premises. That exception "includes the cost to tear out and replace any part of a building" when necessary to repair the system, but the form adds that it does not cover loss to the system from which the water escaped.

So when a pinhole in a galvanized line sprays the hallway, the policy typically pays for ruined drywall and flooring and the cut-out to reach the pipe, but not the pipe. Three cautions:

• The word is "accidental." Slow leaks that went on for months are treated differently in many insurers' forms, which may exclude continuous or repeated seepage. See sudden vs gradual water damage: where insurers draw the line and is water damage covered by homeowners insurance?.
• Your insurer's form controls. Some add water damage sublimits, separate water deductibles or exclusions for known problem plumbing. Check the declarations page and endorsements.
• Under-slab leaks have their own wrinkles. slab leaks and tear-out coverage covers when tear-out is paid.

Buying a house with problem pipes

North Carolina's Real Estate Commission, in a bulletin tied to a 2008–2009 update that it says has not changed, says the mere presence of polybutylene is not a material fact in itself, but becomes one that must be disclosed when the licensee knows or should have known of a probable defect. It also suggests buyers' agents consider advising clients to talk to their insurer before making an offer, because insurer restrictions would matter to that buyer. The same sequencing works anywhere:

1. Ask the seller for the piping type, repipe history and leak history, and look at what the home inspector found.
2. Call two or three agents with the address and pipe type before your inspection contingency ends.
3. If the answer is a repipe, get a plumber's bid and use it in your negotiation. check insurability before you buy a house lays out the order of operations.

If you already own the house

1. Identify what you have. Look at exposed pipe near the water heater, under sinks and at the main shutoff. Flexible gray or blue plastic with PB markings is polybutylene; rusty gray metal with threaded joints is galvanized; orange or blue tubing with brass fittings may be Kitec. A plumber can confirm.
2. Get a written evaluation. A licensed plumber's report on material, condition, pressure and leak history lets you answer an underwriter with facts rather than a general fear.
3. Answer applications honestly. The ISO form's Concealment or Fraud condition withholds coverage from an insured who intentionally conceals or misrepresents a material fact, and a misstated pipe type can qualify.
4. Repipe with a permit if you can, and keep the invoice, permit final and photographs. Send them to your insurer and ask whether a credit applies. A partial repipe may or may not satisfy a given underwriter; ask before you pay.
5. Add leak detection and automatic shutoff. Some insurers credit documented devices, and a shutoff valve limits the size of any leak; see water leak sensors and shutoff valves: discounts and value.
6. If you are declined or nonrenewed, work the steps in your home insurance was nonrenewed: what to do now and the nonrenewal action plan. State-backed plans and surplus lines carriers are the fallback; see FAIR plans explained: the insurer of last resort for homes and surplus lines home insurance when standard carriers say no. Florida requires 120 days' notice of nonrenewal, with the reason, under Fla. Stat. 627.4133.

A hypothetical decision

Say you buy a 1988 house plumbed in PB, and the only standard-market insurer that will write it wants the system replaced within 90 days. These are the options, not prices:

Key takeaways

• Polybutylene, galvanized supply lines, Kitec and old cast iron drains are the plumbing types insurers most often flag, and each insurer sets its own response.
• The ISO HO-3 pays for sudden water damage and the tear-out needed to repair the system, but not for the failed pipe, and insurers' own forms can add limits.
• Citizens' April 2022 rule, which made older polybutylene homes ineligible for new business, shows how strict an insurer can be; private companies vary.
• Before you buy, ask insurers about the pipe type; once you own, get a plumber's report, repipe with a permit if needed and send the paperwork.
• Answer plumbing questions on applications truthfully, because a misstatement can cost you coverage when you need it.