Over the years homeowners and Realtors alike call me with questions about insuring homes with existing polybutylene plumbing. Polybutylene is a plastic, gray in color semi-flexible pipe commonly used in the 1980’s through the early 1990’s. It was a great solution as a replacement for copper pipes because it was less expensive and easier to work with. However, it was determined that polybutylene (primarily the fittings) was prone to failure. This eventually led to a class action law suit against the manufacturers of the pipe.

As a result of the historical data for water loss claims associated with polybutylene, home insurance companies decided that they would not insure homes with existing polybutylene pipes. The only solution for homeowners was to re-plumb their home.

Around 2005, as new home insurance companies began to emerge in the Florida market place and business models began to change, a few insurance companies took a softer stance in their underwriting pertaining to polybutylene. Today, consumers have a few choices of home insurance companies who will insure their home with polybutylene.

However, homeowners should be aware that they may have some tough decisions to make if they go with one of the companies who will accept polybutylene. Typically, the insurance company will exclude coverage for all water damage. An option to “buy back” coverage for water damage is available but with a limitation of $10,000 for any water related claim. This could be problematic for the homeowner for a variety of reasons.

The water loss limitation places the homeowner in a position of having to carefully weigh out the risk of not having enough coverage for a water related claim. Homeowners need to consider that a claim resulting from a plumbing failure can easily exceed $10,000. They should also understand that plumbing issues are not the only cause for water damage. Ask any homeowner who has had a leaky roof on a rainy day.

The truth is there is no perfect solution to insuring a home with polybutylene plumbing. The homeowner will either need to re-plumb their home or accept a policy with significant limitations of coverage. Homeowners should consult with their insurance agent who can fully explain their options and help them make the best decision to meet their needs.