Property damage from water is one of the most disruptive issues a business can face. The common causes of water damage in commercial buildings range from plumbing failures to natural disasters — and the consequences can be devastating. Beyond the immediate loss, water damage can halt operations, encourage mold growths, and compromise a structure’s structural integrity. In this guide, we’ll break down the most frequent culprits behind commercial water damage, offer prevention tips, and explain how ServiceMaster Restore can support your restoration process when the unexpected strikes.
What Is the Most Common Cause of Water Damage?
The most common causes of water damage in commercial buildings include leaking pipes, roof leaks, and sprinkler system malfunctions. These issues often stem from aging infrastructure, poor maintenance, or accidental triggers. Some water damage sources are preventable, such as plumbing leaks or faulty appliances, while others—like natural disasters—are beyond control. Even a small leak can cause extensive damage if left untreated, soaking insulation, damaging floors, and fostering mold within walls. Sprinkler systems are a particularly common source of commercial water damage. A malfunction, even if minor, can unleash thousands of gallons of water into office spaces, retail floors, or warehouses in minutes.
Burst Pipes and Plumbing Failures
In many commercial facilities, water supply lines and plumbing networks age without sufficient updates. Over time, burst pipes become a real threat—especially when freezing temperatures or water pressure issues are involved. A single pipe failure can release a staggering amount of water, making rapid water extraction critical. Poorly insulated pipes are especially vulnerable in winter. When water inside a pipe freezes, it expands, often causing the pipe to crack or burst. Preventative Tips:
Schedule routine plumbing inspections
Insulate pipes in colder climates or exposed areas
Monitor building temperatures during winter months
Faulty or Triggered Sprinkler Systems
Sprinkler systems are vital for fire protection, but they are also a frequent cause of unintended water damage. Accidental discharges during maintenance or system malfunctions can cause widespread flooding, particularly in office and retail environments. Water from a sprinkler discharge can quickly saturate carpets, drywall, and electronics—requiring immediate cleanup to prevent further property damage. Prevention Tip:
Roof Leaks and Structural Vulnerabilities
Roof leaks pose a serious risk, especially during heavy rains or snowmelt. Over time, roofing materials degrade, flashing deteriorates, and gutters clog—allowing water to infiltrate commercial buildings. Once water enters through the roof, it can seep into walls, ceilings, and insulation. This hidden moisture often leads to mold growths and long-term structural problems if not promptly addressed. Solution:
Malfunctioning Appliances and Equipment
Commercial buildings rely on a wide variety of appliances—washing machines, vending machines, ice makers, and coffee makers—that are often hooked into the water supply line. A small leak from these machines can quietly escalate, damaging floors and drywall before anyone notices. Early detection is key to avoiding widespread damage. Pro Tips:
Install floor sensors in high-risk areas to catch leaks early.
Inspect appliances periodically for signs of wear, leaks, or hose damage.
Water Heater Failures
A failed water heater can release dozens of gallons of water into a building within minutes. Older or neglected units are especially prone to ruptures due to internal corrosion or pressure buildup. If a water heater fails in a commercial setting, break rooms, mechanical rooms, or even major office spaces could experience severe flooding. Prevention Tips:
Natural Disasters and Severe Weather Events
Sometimes, natural disasters are the root cause of commercial water damage. Events like hurricanes, flash floods, or river overflows can send large volumes of water surging into buildings. Even the best-maintained structures can suffer damage during extreme weather events. In these cases, flood insurance becomes crucial to help cover recovery costs. When disaster strikes, partnering with an experienced water damage restoration team ensures a fast and efficient restoration process to get your business back up and running.
Clogged or Faulty Drainage Systems
Blocked drains or poor exterior runoff systems can cause water to back up into basements, parking garages, or lower levels of commercial structures. Neglected storm drains, aging infrastructure, or landscaping issues are often behind this type of problem, which can lead to serious property damage if not promptly addressed. Prevention:
How to Find a Water Leak in a Commercial Building
Early detection of a water leak can save thousands in repair costs. Here’s how:
Check your water meter - Shut off all water and observe the meter—if it continues to move, you likely have a leak.
Inspect visible surfaces - Look for soft spots, stains, or discoloration on ceilings, walls, and flooring.
Use technology - Employ moisture sensors, infrared cameras, or hire professionals to locate hidden leaks.
For larger buildings, it’s often best to call in experienced professionals for comprehensive leak detection.
Who Is Responsible for Water Damage from a Commercial Building?
Responsibility for water damage often depends on lease agreements and property ownership. Property owners are usually responsible for the building's structure, including roofs, plumbing, and sprinkler systems. Tenants may be responsible for damage to their specific leased spaces or equipment, depending on the lease terms. Insurance companies evaluate claims based on policy coverage, maintenance records, and the cause of the damage. Good documentation and preventive maintenance help protect both owners and tenants when disputes arise.
What Is the Average Insurance Payout for Water Damage?
The typical insurance payout for commercial water damage restoration can range from $10,000 to $100,000—sometimes more, depending on the extent of damage and the source.
Policies vary, and coverage may depend on whether the cause was sudden (like a burst pipe) or gradual (such as small leaks over time). Businesses with flood insurance are better protected against natural disaster-related
water damage. Tip: Always document damage thoroughly and contact a professional restoration team like ServiceMaster Restore to help streamline the claims process.
Preventing Water Damage in Commercial Buildings
Protect your property with these practical steps:
Conduct regular inspections of plumbing and sprinkler systems.
Schedule annual roof inspections and gutter cleaning.
Maintain appliances like washing machines and water heaters.
Install smart leak detectors and shut-off valves.
Develop an emergency response plan and establish a partnership with a trusted water damage restoration provider.
Protect Your Business from the Most Common Causes of Water Damage
Understanding the common causes of water damage in commercial buildings empowers you to protect your assets, avoid costly interruptions, and safeguard your building's structural integrity. Don't wait for a crisis to take action. Schedule a commercial property inspection or request a consultation with ServiceMaster Restore today. Contact us 24/7 for emergency water damage restoration services—because when water strikes, every second counts.
