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Water Damage in an Employee’s Housing: What the 2025 Reforms Will Change and How to Respond Effectively

Water damage in the housing of an internationally mobile employee can quickly become a source of stress, especially if the employee is not familiar with the local language or administrative processes. In 2025, several changes in home insurance regulations (notably the standardization of reporting procedures and the introduction of the Dedicated Claim Report – CSD 2025) will directly impact how such situations are managed.

Here are the best practices to adopt, along with the key updates to be aware of.

1. Quickly Identify the Source of the Damage

The first reflex remains the same: turn off the water as soon as possible and identify the source of the problem (pipe, infiltration, overflow, leak from a neighbor, etc.).

The employee should then notify:

• the property owner or rental agency,

• their home insurance provider,

• their relocation service provider if assistance is in place.

2025 Update – Enhanced Responsiveness
As part of the 2025 plan to modernize claims management, insurers now encourage the immediate submission of photos/videos via smartphone, which are legally admissible in the claim file and accelerate the claim opening process.

2. Report the Claim: Changes under the 2025 Insurance Reform

The legal deadline remains five business days to report water damage.

Before 2025:

• Different forms were used depending on the insurer.

• Communication between insurers for multiple apartments could be lengthy.

From 2025:

• Gradual introduction of the Dedicated Claim Report (CSD 2025), a standardized document for all insurers.

• Claims can now be submitted online with electronic signatures, including for incidents involving multiple units.

• Insurers must provide an initial response within 7 days, thanks to the Accelerated Compensation Plan.

For mobile employees, this means:

• Less confusion,

• A uniform procedure regardless of the insurer,

• Faster processing, reducing disruption to daily life.

3. Inform All Relevant Parties

The HR department plays a key role. It should ensure that:

• the claim has been properly submitted,

• the owner/agency has been informed,

• the relocation provider is following up if the housing was booked through the company.

This coordination helps avoid duplication and speeds up the intervention of professionals.

4. Arrange Temporary Accommodation if the Housing is Uninhabitable

If the apartment is affected by severe humidity, odors, prolonged water cuts, or requires major repairs, temporary accommodation must be arranged.

The relocation provider can:

• find a furnished replacement property,

• quickly book a serviced apartment,

• manage move-in/move-out logistics,

• reassure the employee, especially if they do not speak the local language.

2025 Trend:
Due to the increase in weather-related claims, more companies are now including express relocation clauses in their relocation contracts.

5. Monitor the Restoration of the Property

Once repairs are complete, it is important to verify that:

• the housing is safe and compliant,

• the employee can return without risk,

• compensation has been properly paid.

HR departments should also retain the claim and related documents to ensure full traceability.

2025 Note:
Insurers now require digital archiving of claim documents, which facilitates multi-country tracking for companies with internationally mobile employees.

A Key Role for HR in a Changing Regulatory Environment

With the new 2025 measures aimed at accelerating and standardizing claims management, coordination between the employee, property owner, insurer, and relocation provider is simpler but remains essential.

By relying on experienced partners, HR departments can ensure:

• prompt support,

• smooth assistance,

• continuity of the employee’s professional stay,

• and maximum peace of mind, even in unexpected situations.

Through careful coordination and a thorough understanding of local requirements, MMC supports companies in managing these situations efficiently, allowing employees to continue their assignments with confidence and ease.