Blog

Are You at Risk because of Kitec?

Are You at Risk because of Kitec?

Home or condo owners – you could be on the hook for the replacement of Kitec plumbing.
There’s a plumbing crisis right now that may affect your home. If you have Kitec plumbing in your home, you are at significant risk of it failing, resulting in not just leaks but major flooding.
Kitec plumbing, a popular and less expensive alternative to copper piping, was installed in a considerable number of North American homes and new condo developments from 1995 to 2007. Due to insurmountable product malfunctions, Kitec was pulled from the market in 2005, with a class action suit settled in 2011.
Experts state that the malfunction of Kitec is guaranteed, as the piping is not built to withstand high heat (temperatures of more than 180 degrees F) and pressure. As a result, insurance companies have either refused coverage outright, increased deductibles, or limited coverage to property owners with Kitec plumbing installed in their homes.
How do you know if you have Kitec in your home?
While the name “Kitec” is the most common brand of Kitec piping, there are a number of other brands out there. They include: AmbioComfort, AQUA, KERR Controls, IPEX, Plomberie Amelioree, PlumbBetter, WarmRite, and XPA. In addition, Kitec was offered in multiple colours, including blue, red, and orange
I have Kitec – what should I do?
It’s a good idea to take action quickly to plan for the inevitable failure of this type of piping. First, you’ll want to register your name and information with the Kitec Settlement website. A class action suit was launched in the US and Canada, and recently settled for $125 million, with approximately $100 million allocated for end consumers. The website explains:
“ALL PERSONS THAT OWN, HAVE OWNED, LEASE, OR HAVE LEASED, AND ALL THOSE WHO HAVE OR MAY PURSUE CLAIMS THROUGH OR IN THE NAME OR RIGHT OF THEM, BUILDINGS, HOMES, RESIDENCES, OR ANY OTHER STRUCTURES IN THE UNITED STATES AND CANADA THAT CONTAIN, OR AT ANY TIME CONTAINED, KITEC PLUMBING SYSTEMS AND/OR COMPONENTS.” (Source)
The settlement fund is set to be distributed by January of 2020; however, it is estimated that given the sheer volume of those affected and the related replacement costs, most consumers will receive little if any monetary relief through the fund.
If you’ve recently purchased a property with Kitec, the sellers should have disclosed this information to you. Contact your real estate broker immediately to discuss options.
Next, you should inform your insurance company about the discovery. Square One Insurance Services explains:
“Determine what type of plumbing you have in your home, and be honest with your insurance agent. You don’t want to have coverage denied in the event of a loss because incorrect information was supplied at the time of application.” (Source).
You may consider a few different options:
1. Replace your Kitec Piping. Unfortunately, this is costly, and cannot be claimed through your insurance. Replacement costs are estimated to run between $5,000 to $15,000 depending on the size of the home or unit.
2. Sell your home/condo. Some home/condo buyers are willing to replace the piping as part of a purchase deal. Further, real estate brokers may be able to help. The “Kitec Crusader” has offered to purchase properties to help affected homeowners.
3. Install a leak detection system that includes a water shutoff. While we feel this is imperative for every home, those affected by Kitec plumbing will need to know the moment a leak is detected so they can shut off their water and prevent catastrophic damage. Eddy’s technology, including our H2O sensors and IQ offers significant protection for a homeowner right now, while you are weighing your options. We also provide special discounts to property owners affected by Kitec.
As a property owner with Kitec, you will have to act to protect your property and belongings. Whatever your situation, know that support is available for you. For more information about how Eddy can help, contact us today at 877 388 3339 or info@eddyhome.com.
About Eddy Home
Founded in 2014, Eddy Home is an industry leader in leak protection and water visibility solutions. Our suite of smart products offers a comprehensive water management system for homeowners that protects, controls, and conserves. Our products have saved thousands of customers millions of litres of water by continuously monitoring water usage in their home, and if something unusual is detected, alerting them to the issue. For more details, please contact us at 1 877 388 3339 or email info@eddyhome.com.

Share this article on

Related Articles

Eddy Win of the Week

Win of the Week – CityLights on Broadway

CityLights on Broadway by Pemberton Group seamlessly blends resort-style amenities, contemporary architecture, and the cosmopolitan vibe of the bustling Yonge and Eglinton neighbourhood. The building’s sleek and modern design, featuring

Read More
Eddy Win of the Week

Win of the Week – 75 Oneida Crescent

75 Oneida is a new condominium built by Pemberton Group in the heart of Richmond Hill at Yonge & Hwy 7. Recently, a water-detected alert was triggered by one of our sensors in the mechanical penthouse at 75 Oneida Crescent.

Read More

Win of the Week – Kingsway By The River

Developed by Urban Capital, Kingsway By The River is ideally situated in the heart of Toronto’s prestigious Kingsway neighbourhood. Creating a classic internationally-styled community on the bank of The Humber

Read More
Paul Pathak​

Director

Paul Pathak is a partner of Chitiz Pathak LLP. Paul practices principally in the areas of corporate, securities, corporate finance, mergers and acquisitions and commercial law. He represents and provides sophisticated guidance to private and public corporate clients in a broad range of industries, including mining, technology, manufacturing, venture capital and merchant banking.

George Krieser​

Director

George Krieser founded Total Credit Recovery Limited (“TCR”) in 1980 and is the President and Chief Executive Officer. TCR is the largest 100% Canadian-owned and operated collection agency, solely collecting Canadian debt. George previously served as a Director of Universal Energy. He also served as a member of the board of directors of Baycrest Foundation and as a member of the fundraising committee for UJA Federation of Greater Toronto.
Gary Goodman​
Director
Gary Goodman is a Trustee and Chair of the Audit & Risk committee of Boardwalk Real Estate Investment Trust., a former Chairman of Huntingdon Capital Corp., trustee of Gazit America & Brightpath Early Learning, and is a member of the advisory boards of the Vision Funds. Gary was previously Executive Vice President of Reichmann International where he served as a senior financial executive and trusted advisor for over 30 years.

Chris Gower

Director

Chris Gower started his career in construction on the tools – framing houses, where he grew a deep appreciation for the trades. Prior to his current role as Chief Operating Officer, Buildings at PCL Construction (“PCL”), Chris held positions including construction risk manager, senior project manager, district manager and regional vice president. Throughout his more than 25 years at PCL, he has delivered iconic construction projects across Canada, Australia and the United States.

June Thomson

EVP, Sales, Marketing
& Business Development

June joined the Eddy team coming from Enercare after 10+ years in various roles, most recently as Vice President of the North American Builder Division. June has been in the HVAC industry for over 41 years, holding several roles throughout her career from Technician to Provincial Offences Officer.

Saj Khan

COO & President

Sajid Khan helped launch Eddy Solutions and has been in the role of Chief Operating Officer since inception. With more than 20 years of leadership and operational experience in the home services sector, Saj has held roles such as COO of Eco Energy Service, Vice President of Operations at both National Home Services and Universal Energy.

Boris Baril

CFO

With more than 25 years of financial experience, Boris has held both public and private company CFO roles; supported two (TSX listed) initial public offerings (IPOs), debt and equity capital raises, and M&A transactions. Boris graduated from York University and is a CPA, CA.

Mark Silver

CEO & Chairman

Mark L. Silver is President of Optus Capital Corporation. Mr. Silver has made significant real estate investments in both development stage and income producing properties in the residential, commercial and industrial sectors over his 35 year business career. Over the last 22 years, these investments have been made through his company, Optus Capital Corporation. Mr. Silver was a founding partner and Chief Executive Officer of Universal Energy which was sold in 2009 to Just Energy Group Inc. He co-founded Direct Energy Marketing and grew the company to over $1.3 billion in revenues before selling to Centrica PLC (also known as British Gas) in 2000.