Insurance Challenges with Galvanized Pipes in Apartment Buildings

Galvanized steel pipes, once a common choice for plumbing in apartment buildings built before the 1960s, are now a red flag for both property owners and insurance companies. As these aging pipes continue to deteriorate, they pose not only maintenance concerns but also significant challenges in securing affordable and comprehensive insurance coverage.

What Are Galvanized Pipes?

Galvanized pipes are steel pipes coated with a layer of zinc to prevent rust and corrosion. Over time, however, the zinc coating erodes, allowing the pipes to rust internally. This leads to reduced water flow, pipe blockages, and eventual leaks or bursts — all of which increase risk for insurers.

Why Insurers Are Concerned

Leak Risk

Old galvanized plumbing is prone to leaks and bursts due to internal corrosion and sediment buildup. Water damage is one of the most expensive insurance claims, and these pipes substantially raise the likelihood of such claims.

Mold and Structural Damage

A hidden leak in an apartment wall or ceiling can lead to mold infestation, drywall damage, and even structural issues. These risks make insurers cautious about issuing or renewing policies.

High Claim Frequency

Insurers track claims by property type and construction materials. Buildings with galvanized plumbing often have a higher-than-average frequency of water-related claims, prompting some carriers to increase premiums or decline coverage altogether.

Impact on Apartment Building Owners

Limited Coverage Options

Many insurers now exclude coverage for damage caused by “wear and tear” or “gradual deterioration” — the exact causes of failure in galvanized piping. Some may even exclude water damage unless the building undergoes a full repipe.

Higher Premiums

Even if coverage is available, insurers often charge higher premiums for properties with original galvanized plumbing. Buildings that haven’t been updated in 40+ years are considered high-risk.

Inspection Requirements

Some carriers require a plumbing inspection before issuing a policy. Evidence of corroded galvanized pipes can result in conditional coverage or denial unless upgrades are made.

What Can Property Owners Do?

1. Get a Plumbing Inspection

A certified plumber can assess the current condition of your galvanized piping and help document it for insurers.

2. Consider a Repipe

Replacing galvanized pipes with copper or PEX significantly reduces risk — and can make the building more insurable. It’s a capital investment that also improves tenant safety and property value.

3. Work with an Insurance Broker

Some brokers specialize in hard-to-insure properties. They can connect owners with niche carriers that may offer coverage at more reasonable terms.

4. Disclose Honestly

Full disclosure of plumbing materials is essential. Hiding the presence of galvanized pipes could void coverage in the event of a claim.

Conclusion

Galvanized pipes are more than just a plumbing concern — they’re an insurance liability. As carriers become increasingly risk-averse, apartment building owners with aging infrastructure face higher costs and stricter requirements. Replacing outdated plumbing may seem expensive, but it can prevent devastating water damage, avoid insurance headaches, and maintain the insurability of your property in an increasingly cautious market.