Smart home water monitoring devices prevent property damage
Some insurers incentivize policyholders with discounts to use water monitoring devices, decreasing losses from water damage claims.
Water damage or freezing pipes was the second leading cause of home insurance claims from 2016 to 2020, according to the Insurance Information Institute (Triple-I). Smart home water sensors are early detection systems that find leaks inside and outside the home before they get out of hand. Some insurers reward insureds who install and use water monitoring devices with discounts.
Partnerships
Mercury Insurance has partnered with Flume Water Monitor to reduce water leaks. Policyholders save 25% on the retail price of the smart home device and may be eligible for a discount if they live in a qualifying state. The discount applies for as long as the device is active on the property.
“Water leaks are the leading cause of non-weather-related homeowner losses,” said Adam Bakonis, Mercury Senior Product Manager to PR Newswire. “Saving our customers money while providing them multiple layers of protection means we are doing our job.”
Church Mutual Insurance has also partnered with a water-monitoring device company. Church Mutual policyholders can get a CM Sensor® at no cost, and the technology offers 24/7 detection of temperature changes and other water alerts. This lets homeowners and commercial property owners know when extreme temperatures in the home or building could cause pipes to burst or freeze.
Home Advisor reports 29.4% of 2023 home insurance claims were due to water damage and freezing. Moen, Flume, AlertAQ™ and other companies that make these water sensors could save insurers and policyholders from substantial losses.
Insured Benefits
Water monitoring devices serve many purposes for commercial properties and homeowners. Some can shut off the water main after detecting a leak, stopping small problems from becoming big ones. Others are positioned above the waterline in a sump pump basin to detect a pump failure and prevent a basement from flooding. Various sensors can catch issues with sinks, washing machines, refrigerators, water heaters, toilets, dishwashers and sprinkler systems and alert homeowners via smartphone, tablet or computer if something is amiss.
Most of these technologies alert property owners the second the device makes contact with water; some offer custom alert thresholds for temperature and humidity. Water monitoring devices can minimize water damage, preserve the value of the home or building and reduce the risk of mold growth, preventing a health hazard, but they can do more than catch leaks.
The Environmental Protection Agency (EPA) reports the average household leak wastes up to 10,000 gallons of water annually, and 10% of homes with water leaks waste 90 gallons or more daily. Installing a water monitoring device can help policyholders become more sustainable with improved water efficiency.
Insurer Benefits
The average water damage claim payout between 2016 and 2020 was $11,605, but the typical range was $1,322 to $5,954, reports Triple-I. Some insurers don’t file a claim if the repairs cost the same or less than their deductible. Still, one in 60 homes will file a water damage claim in 2024, or 1.6% of homes. Insurers that incentivize policyholders to use water monitoring devices could decrease their annual losses from water damage payouts.
Related: