Blog

Water and Multi-dwelling Units

Water Damage is the Most Common Claim in Buildings

In early August in Toronto, sudden, heavy rains dumped up to 75 millimeters of rain in various parts of the city within a three-hour period, resulting in some of the worst floodings the city has seen in years.
by percentage
The evening was ablaze with stories of lost vehicles, stranded passengers, and most dramatically, a heroic last-minute rescue of two construction workers trapped in an elevator.
Final insurance claims statistics are not yet available, but it’s safe to assume the damage will be in the hundreds of millions.
by dollar valueWhile intense weather patterns are frightening and costly, the reality is that catastrophic water damage isn’t limited to seasonal flooding. In fact, water damage originating from the plumbing inside a building continues to be one of the most common types of property insurance claims. The average cost of a claim is approximately $120,000 and accounts for an outstanding 71% of all claims in terms of dollar amounts.
Zurich Insurance recently shared the following cases:
• A major leak from a failure in a hot water tank relief valve damaged nine floors of an office building as the leak ran through an entire weekend. The tank had been installed without the owner’s knowledge and risk transfer provisions between the owner and the tenant were not sufficient. A pipe corroded near a coupling. Prior evidence of staining indicated that a small leak was present for some time. A loss of $600,000 occurred.
• During a high-rise renovation, an abandoned water line ended up slowly leaking for an extended amount of time. Unbeknownst to the contractor, pressure began building up in the pipe, causing the water column to rise as high as four levels before finally breaking through the plaster. Losses mounted to more than $500,000.
• A window left open in a vacated tenant space caused a pipe to freeze just inside the exterior wall. Coupled with the heat shut-off during the vacancy, the pipe burst, and water leaked down four floors. This inspection oversight resulted in a $100,000 loss.
• A sprinkler fitting separated between the fourth and fifth floors of a 30-floor hotel, causing an instant leak and triggering the start of the electric fire pump and waterflow alarm. Unfortunately, both went unnoticed by onsite management. Two building engineers eventually discovered water pouring down the stairwell. By this time, the water had flowed into ceiling tiles, carpeting, drywall and vinyl wallpaper on all the floors below, and onto two 480-volt circuit breakers. The elevator pits were left with three feet of standing water, as well as the escalator pits. On the first floor, the guest business center and management offices also suffered from water damage. In the end, losses came close to $1.5 million.
• A commode overflowed in a tenant bathroom of an apartment building causing water damage to multiple units below. The damage was more than $65,000 despite a quick response from the staff.
• To provide water for a piece of equipment, a section of rubber hose was used. This hose eventually failed and flooded several levels of an office building. The damage was over $500,000.
Water damage can be extremely costly and, in many cases, debilitating. However, water damage that originates within a building is preventable with intelligent water monitoring/leak prevention solutions. Internet of Things (IoT) powered water/leak protection (such as Eddy’s technology) that triggers alerts the moment water is detected, acting as an alert system that detects the presence of water can help, notifying the property manager and/or resident so that action can be taken, and can include a remote/automatic shutoff system at the main that enables users to shut off their water immediately if a leak is detected. Some solutions employ both a sensor and shutoff valve that enables immediate detection and water shutoff as part of a closed loop system. The end result is the mitigation of water damage, cost, and resident distress.
About Eddy Solutions
Eddy 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 info@eddysolutions.com.

Share this article on

Related Articles

Win of the Week – 8 McKee Avenue

Our sensors at 8 McKee Avenue recently detected a low pressure in the hot water PRV. This low pressure indicated that the hot water PRV was faulting and would be due for service cleaning and diaphragm replacement to ensure the valve operates as intendant.

Read More

Win of the Week – PJ Condos

Developed by Pinnacle International, PJ Condos is located at 99 John Street and in the heart of Toronto’s Harbourfront & Entertainment District. Located steps to the Underground PATH, the Financial

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.