“The insurance industry is ripe for innovation,” says Shkya Ghanbarian, Vice President, Sales and Business Development. “With the help of the leading technology solutions, the industry can now utilize real-time information to predict a loss and prevent it from happening.”
So, what initiatives in an industry often resistant to digital adoption can be implemented to improve their bottom lines?
Numerous digital and analytics solutions are already in the market, ready to help insurance companies identify and secure opportunities to improve productivity across the value chain, including overhauling general expenses and reducing claims losses. Utilizing these solutions allows carriers to free up capital to invest in growth, customer and agent experience, and other priorities, giving insurance companies the flexibility to strengthen their long-term relevance.
One of the leading sources of property losses for both building owners and tenants is water damage. In some cases, the risk of property damage from water leakage may even be greater than the risk of fire. A relatively small water release can soon result in significant damage if it comes into contact with sensitive electrical or electronic equipment, furnishings or highly susceptible stored commodities. That leads to losses for both insurance holders and insurance carriers.
Water damage can come from many sources. Corroded pipes can burst, defective or improperly installed fittings can leak, and heating systems can fail — and all of these can result in major non-weather-related water disasters. With losses ranging well into the millions of dollars, these types of water damage can also result in business interruption, relocation costs, and lost rents.
According to insurance industry reports, the frequency and cost of water damage losses are continuing to increase.
- Homes are 12x more likely to be damaged by a water leak than by fire.
- Water damage risks aren’t always visible. Interior corrosion can be the underlying cause of the pipe defects that make them more susceptible to bursts.
- A broken 2-inch supply line flows over 125 gallons per minute at 55 psi — which works out to 2,500 gallons in 20 minutes.
- Even minor leaks can cause extensive damage. Two hundred fifty gallons of water per day can leak from a 1/8″ pipe crack.
- If a building is empty, it’s less likely that someone will detect water damage risks early. According to Chubb, vacancy water emergencies account for about 8% of commercial water damage losses overall.
- Taller and high-value buildings are more at risk. There is a documented increased incidence of leaks and burst pipe events from taller and high-value buildings.
As our partners at Chubb write: “The solution to water damage losses is a balance of the following three factors; risk appreciation, risk assessment (including a water damage mitigation plan), and water detection technology to address the inevitable gaps.”
Eddy’s intelligent suite of products continually tracks and monitors the water environments of the property, ensuring that water damage is prevented. Using Eddy’s proprietary technology, custom dashboards, and 24/7 monitoring and support, Eddy provides substantial protection to single-family homes as well as commercial and multi-unit residential buildings.
A general recommendation is to install leak detection and automatic shutdown devices in susceptible equipment rooms of the building, within or around HVAC units, laundry units, kitchens, bathrooms, hot water heaters, and other high sensitivity or susceptible areas.
Start harnessing opportunities to improve your bottom line with the technology proven to move the needle.
Eddy Solutions is an industry leader in leak protection and water monitoring solutions. Our suite of smart products offers a comprehensive water management system for building operators and homeowners that protects, controls, and conserves water. Our products have saved thousands of customers millions of dollars in damages and millions of litres of water waste by continuously monitoring water usage in their properties. For more details, please contact us at 1 877 388 3339 or email firstname.lastname@example.org.