How IoT is revolutionizing water-damage mitigation

Water damage is one of the most common and costly insurance claims in the United States. Typically, about 30% of insurance claims are water-damage related claim losses. Of those claims, plumbing or appliance issues are the most common source of the damage , followed by storm and weather-related events.

Insureds must take important steps to develop a plan to minimize the risk of water-damage events and control their severity. An effective plan for water-damage mitigation and emergency response should have three primary focal points: assessment, preparation and isolation.

Assess water intrusion sources.

It is key to understand how water might enter a building and the damages that can occur. The major sources of water damage to buildings include:

1. Building infrastructure that supplies, removes or uses water such as HVAC equipment with condensate drains, humidifiers, hot water heaters, washers and icemakers.
2. Building construction including exterior walls, doors, windows and the roof. The primary purpose of most buildings is to keep conditioned air inside and prevent water intrusion into the building.
3. Water from outside sources or an unintended inside source. Managing and responding to surface water, back up of sewers and drains, and flood hazards is a key risk control element for a property owner.

An insured should consider having an assessment performed by an accredited professional to identify potential infrastructure risks where systems and equipment are beyond their useful life or have been damaged. The review should include a thorough assessment of plumbing, sewage, HVAC, roofs and sprinkler protection systems.

The assessor should also identify the essential and high-valued equipment such as servers, computers, and production equipment that may be impacted and understand the time and cost to repair and replace water-damaged items. This will enable the business to develop recovery plans for key equipment with the information needed to expedite a recovery and restart of the operations.

Prepare a mitigation solution.

Preparation is the foundation of any successful water damage mitigation plan. The key elements for preparation should include:

• Maintaining current maps and drawings identifying all water sources and control valves;
• Updated minimum construction facility standards for new facilities;
• Frequent drills and training programs for key response personnel;
• Established guidelines for minimum flood mitigation equipment, inventories, and site locations; and
• Established system agreements with contract environmental services.

Preparation should also include steps to be taken to reduce the degree of water damage to the business with the utilization of flow restriction and remote monitoring devices:

• Use of water detection devices to quickly detect and alert of the presence of water.
• Implement the use of flow control or flow restriction devices on water supply lines.
• Define the response process for water alert events.
• Consider the use of automatic shut-off devices.

An increasingly popular element of many water damage mitigation plans is the use of new IoT (Internet of Things) water sensing technologies. Simple “plug-and-play” technology is expanding rapidly for building management and monitoring systems. The use of this technology allows for quick detection of failed water sources, which is imperative to reduce water damage to business operations. This technology can be categorized as either “Passive” or “Active.”

Passive systems send alerts to your phone/email when a water intrusion occurs. Passive sensor alarms are typically for the smaller appliances, sinks, water heaters, condensate overflow pans, and other water sources. These can be wireless Wi-Fi or cellular connected devices that will alert business responders to the presence of water, affording an opportunity for a quick response and ultimately reducing damage potential. In addition, AI technology is expanding to monitor water consumption rates over time to indicate water use anomalies.

Active systems are more effective at reducing the amount of water intrusion. These systems incorporate devices that detect water and/or monitor water flow rates and will automatically shut off valves during leak events.

In addition, “flow control” or “flow restriction” devices that are self-closing (pop-off valves) can automatically shut off the flow can be placed in-line on supply lines for things like toilet connections, sinks, dishwashers, icemakers, coffee makers, etc. AI technology monitoring water consumption rates can also be used to shut water systems off if unusual usage rates are discovered.

An excellent water damage mitigation plan will incorporate this new technology and allow for rapid detection, flow control, and quick response to water events.

Isolate and remove water.

Quickly detecting the presence of water, identifying the source of water, and isolating that source as soon as possible can significantly reduce damage and impact to a business.

Following water isolation and containment, it is important to begin the drying process. This can include using fans, dehumidifiers, and other methods to reduce moisture levels. It is also essential to remove any standing water as soon as possible to prevent mold growth. Immediately following a water damage event, a thorough inspection is necessary, including checking for signs of structural damage, testing for mold and other contaminants, and assessing any potential health risks should be performed.

Water damage mitigation is a critical important process for any business owner, as it can help prevent significant structural damage, mold growth, and contamination. Taking the right steps to contain and dry out the water, as well as thoroughly inspect the affected areas, can help save time and money, as well as prevent potential health risks for the occupants.

Bret M. Martin (PE, CSP, CFPS, CHFM, CHSP, CHE, CLSS-HC) is assistant vice president, Property Risk Control, CNA Insurance.

See also:

• Water damage results in severe losses for commercial insureds
• Damaged water pipe: Is the loss of water covered?
• Wading through insurance policy water damage exclusions

The information, examples and suggestions presented in this material have been developed from sources believed to be reliable, but they should not be construed as legal or other professional advice. CNA accepts no responsibility for the accuracy or completeness of this material and recommends the consultation with competent legal counsel and/or other professional advisors before applying this material in any particular factual situations. This material is for illustrative purposes and is not intended to constitute a contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. “CNA” is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” trademark in connection with insurance underwriting and claims activities. Copyright © 2023 CNA. All rights reserved.