Water damage remains one of the most significant and costly risks faced by commercial buildings, including hospitals. The financial impact of water-related incidents is driven by high repair costs, extensive business disruption and potential health hazards.
A substantial portion of property insurance claims for commercial properties are the result of water damage, according to research from the Insurance Information Institute. Burst pipes, plumbing leaks and other water intrusions combine to make it one of the top causes of property loss claims. The complex and sensitive nature of hospital infrastructure makes them especially vulnerable, with recent incidents highlighting the severity of this risk.
Hospitals are critical facilities and must maintain operational continuity to ensure their patients remain safe and they can continue to provide healthcare to their communities. Yet, they are increasingly susceptible to water damage from various sources, including natural flooding, plumbing failures and external water intrusion.
For example, a burst sprinkler pipe and broken steam system caused significant infrastructure failures and wreaked havoc on patient care at a Maryland hospital in January 2025. It was reported that 60,000 gallons of water flooded throughout the facility before it was contained, damaging 50 rooms and 6 elevators.
Earlier examples include the December 2024 water loss at a North Carolina hospital, which was caused by a burst chilled water pipe. The water leak primarily impacted the Emergency Department and caused patient diversions and temporary relocations. Overall, tens of thousands of gallons of water flooded lower levels, requiring extensive replacement of drywall and flooring.
These incidents underscore the vulnerability of hospitals to water damage, which can escalate quickly and result in costly consequences.
Why hospitals are vulnerable
Hospitals face unique vulnerabilities to water damage due to their complex infrastructure, critical equipment and the necessity for a sterile environment. Understanding how water can cause damage is essential for developing effective mitigation strategies. Here are some things that make hospitals particularly vulnerable:
- Complex infrastructure and critical systems: Hospitals operate with highly intricate plumbing, electrical and HVAC systems. A failure or breach in any of these can lead to widespread flooding or water intrusion. For instance, a burst pipe in a mechanical room can flood multiple floors, damaging electrical wiring, medical devices and patient areas.
- Expensive and sensitive equipment: Hospitals house advanced medical technology and electronic health records that are susceptible to water damage. Some of the most expensive equipment, like an MRI machine, is typically kept on the ground floor because of its size and weight and, therefore, is more likely to be impacted. Flooding can lead to the loss of costly equipment, data and supplies, which can take weeks or months to replace and restore.
- High human and patient traffic: The constant flow of patients, staff and visitors increases the risk of water-related incidents. Accidental spills, clogged drains or leaks can quickly escalate in busy hospital environments, especially if not promptly detected.
- Operational disruption and business interruption: Water damage often necessitates evacuations or temporary closures of affected areas. The resulting downtime can be costly, not only in repair expenses but also in lost revenue, delayed treatments and compromised patient safety.
- Environmental and health risks: Water intrusion can lead to mold growth, bacterial proliferation and other health hazards. These issues can further increase remediation costs and pose risks to vulnerable patient populations, making quick and effective response critical.
Water damage poses a serious and costly threat to hospitals, driven by their complex infrastructure, critical equipment and operational demands.
Stopping the flow
Given the high stakes, hospitals must adopt comprehensive measures to prevent and mitigate water damage. Here are some of the most effective strategies:
- Design and engineering: Domestic water lines should not be installed above critical services. For example, in a hospital, a water line for an icemaker should not be located on the floor directly above an MRI machine.
- Regular inspection and maintenance: Establish routine checks of plumbing, roofing and drainage systems. Regular maintenance can identify early signs of deterioration, corrosion or leaks before they escalate into major incidents.
- Installation of water detection and shutoff systems: Modern leak detection sensors and automatic shutoff valves can quickly identify leaks and automatically stop water flow, minimizing damage. These systems are especially vital in mechanical rooms, basements and areas prone to external water intrusion.
- Structural improvements and waterproofing: Retrofitting vulnerable areas with waterproof barriers, seals and drainage enhancements can prevent external water from penetrating the building. Upgrading roofing and windows to resist water ingress is also crucial.
- Developing and practicing emergency response plans: Hospitals should have detailed water intrusion response procedures, including evacuation protocols, containment methods and communication plans. Regular drills ensure staff are prepared to respond swiftly.
- Investing in staff training and awareness: Educate hospital staff and maintenance personnel to recognize early signs of water leaks, understand the importance of prompt reporting and know how to activate emergency measures effectively.
- Structural and infrastructure upgrades: Incorporate water-resistant materials in vulnerable areas and improve drainage systems to handle heavy rainfall or flooding. Elevating critical equipment and utilities can also reduce exposure.
Maintaining adequate insurance coverage: Ensuring comprehensive property and business interruption insurance can provide financial protection against large-scale water damage events.
Multi-faceted water loss mitigation
Water damage poses a serious and costly threat to hospitals, driven by their complex infrastructure, critical equipment and operational demands. Incidents like those in the Maryland and North Carolina hospitals in 2025 and 2024, respectively, serve as stark reminders of the potential scale of losses—from structural damage and equipment loss to operational disruption and health hazards.
However, with proactive planning, regular maintenance, modern detection systems, structural improvements and staff training, hospitals can significantly reduce their vulnerability to water damage. Investing in these mitigation strategies not only safeguards property but also ensures continuous, safe patient care. Recognizing water damage as a major property risk—and implementing comprehensive solutions—are essential steps toward resilient healthcare facilities capable of withstanding and quickly recovering from water-related incidents.
To learn more about how to protect buildings from water damage, read WaterWorks from AXA XL Risk Consulting.
About the authors
Lindsay Hermann is Head of Property for AXA XL’s Central Zone.
Tristan Wilson is the North Central Regional Engineering Lead for AXA XL Risk Consulting.
