The hidden cost of ignoring maintenance in property risk

Putting off maintenance is a common driver of preventable property losses, yet it rarely gets the same attention as more visible risks. In reality, daily maintenance is a highly effective line of defence for most organisations.

“Most major losses we investigate have warning signs that were visible months or years earlier,” said David Reynolds, Head of Risk Engineering and Surveys at RiskSTOP. “Routine maintenance and good housekeeping may not feel strategic, but together they prevent more claims than almost any other measure.”

Where property maintenance failures show up

Ageing plant and machinery, worn electrical systems, damaged roofs and neglected heating or ventilation equipment all increase the likelihood of failure. These issues can contribute to a large share of claims involving fire ignition, water damage and structural deterioration.

Escape-of-water incidents are a good example. Many start as minor leaks from corroded pipework, failing seals or ageing fixtures. Left unchecked, they escalate into major disruption, forcing closures, stripping out works and lengthy reinstatement.

The role of housekeeping

Housekeeping is just as important as technical maintenance. Blocked vents, cluttered plant rooms, poorly stored combustibles and obstructed access routes all contribute to increased fire load and hinder safe evacuation. Poor housekeeping can also compromise fire detection and suppression systems, allowing small incidents to develop into major losses.

When investigators find that systems failed because of neglect, insurers are more likely to question management oversight and compliance, especially where previous inspections had already identified issues.

Prevention costs less than cure

The financial argument for proactive maintenance is straightforward. Planned servicing, regular inspections and structured asset-care programmes usually cost far less than emergency repairs, business interruption and reputational damage after a major incident.

Yet many organisations still treat maintenance as a discretionary spend, cut when budgets tighten. In doing so, they shift cost from planned, manageable activity into unplanned loss.

“Maintenance is not an optional extra,” David Reynolds added. “A small amount of attention at the right time can prevent a significant loss.”

Treating maintenance as a core control

By recognising maintenance and housekeeping as core risk-management disciplines, not background chores, organisations can reduce claims, improve resilience and support more sustainable insurance outcomes. Neglected buildings typically cost more in the long run.

Our suite of digital, hybrid and in-person risk services makes 'Exposure-Appropriate Risk Management' available to all. Read more about how we keep people safe and secure at RiskSTOP here.