When it comes to the number one loss generator across nearly every industry, water damage tops the list. In terms of the sheer number of losses, no other risk exposure has come close. Burst pipes, leaky toilets, and malfunctioning sprinkler systems can really dampen a day, and its surrounding real estate. Not to mention, water is a very vulnerable resource. Many parts of the world have seen prolonged drought conditions. Water scarcity is a real issue for many. So, finding ways to avoid squandering of any of this valuable resource can contribute significantly to businesses’ sustainability plans.
Frigid temperatures on Christmas brought anything but holiday cheer for some property owners. For instance, some in South Carolina, which typically does not see temperatures dip to 7 degrees Fahrenheit like it did on Christmas Day, saw water damage from bursting pipes.
And the longer any water leak goes undetected, the more damage it does. Often times claims are submitted as ‘damage from water’ and it is determined through investigation that water had been leaking over an extended period of time causing rust/corrosion to pipes, enabling the growth of mold while damaging insulation, drywall and even flooring.
Water from a slow leak in a ceiling or behind a wall will always find the path of least resistance, resulting in damage to a portion of a structure well beyond the area you would expect to find damage from a quickly discovered leak from a burst/frozen pipe or damaged sprinkler head. A recent claim was investigated where a pipe froze but was not detected during the site inspection as the ice was still solid when the area was checked. As the ice melted, the water proceeded to leak for 5 days, and damage occurred, emanating from the area originally thought to be unaffected by the freeze event. Following the path of least resistance, the water eventually found its way to a set of Busbars which caused arching and exacerbated the property damage attributed to the original leak. . But the price tag can climb much higher, especially if a leak goes undetected for a period of time. in Kentucky is looking at costs up to $5 million in expenses to clean up five schools damaged by the Christmas cold snap which resulted in water pipes in their systems freezing and bursting, causing extensive damage throughout the schools.
The average commercial water damage claim is $150,000. But the price tag can climb much higher, especially if a leak goes undetected for a period of time.
Water can infiltrate any building at any time and with little warning. That’s why it’s not surprising that . No industry is immune, either. Financial institutions, office buildings, apartment buildings, manufacturing facilities, warehouses – nearly every commercial building has exposure.
Taking the right precautions
Knowing what the sources of water damage can be is one of the first steps toward mitigating the issue. Water can escape from internal building systems such as a water distribution system or fixtures, like toilets, HVAC fluid systems (Chilled Water or Refrigerant piping), fire suppression or sprinkler systems. Damage can also result from the building envelope, including, curtain walls, windows, roof top equipment, and drains allowing water to seep in.
Where in the building and when the leak occurs pose some additional implications. A burst pipe on the eleventh floor that goes undetected can cause extensive damage, for example, to all the floors below it. Or, should a building have a pipe burst or a small leak on a Friday evening, after everyone goes home, and continues through the weekend, even a small leak can have a huge impact.
Most water damage losses can be prevented with the right precautions. To help our commercial property clients, 九色视频has a longstanding loss prevention program, called WaterWorks which helps organizations mitigate damage, prevent intrusion, and help decrease loss potential and also provides preventative maintenance and pre- and post-emergency planning.
Deploying risk-reducing technology
While many preventative measures can be taken to prevent a leak, there is still the chance that something can spring a leak. Detecting an issue early is key to minimizing costly property damage.
The good news is that there are a growing number of technologies available to serve as early warning systems to keep the damage from escalating. Such systems are able to track and monitor factors like humidity, pressure, and temperature, that may affect water flow rates. They can also detect the amount of water flowing through the space or contained within a pipe.
Preventing water damage is not the only concern driving the growth of the water sensor market, increasing demand for water, scarcity and constraints are also piquing interest.
How it works
Flow meters and shut off valves are installed on water lines coming into the structure. Depending on the type of building or operations, water sensors that can detect water intrusion may also be installed. The technology then goes to work. As it monitors the water flow in any given facility, the technology “learns” your water usage patterns. It can identify the signatures of different types of equipment, such as a cooling system or a hot water boiler system.
Once the amount of flow and duration is measured, the technology then uses those benchmarks to monitor a facility for any anomalies. Should there be an acceleration or other abnormality in the typical flow of water, the system can do a few things: It alerts designated persons to the anomaly, and it can shut off the water automatically. In fact, customers can set up the conditions for alert/action and the actions needed to be taken.
Even in the case of a low-flow leak, systems can detect a leak of just below a gallon per minute. Because the systems are designed to operate in a commercial setting where water is always moving, they can detect low, continuous flows quite easily.
At the moment of detection, the technology can then shut off the main water supply. Or, if it is being used in a multi-level apartment complex, for example, shutoff valves can be installed on submeters installed on each level so that the entire building is not impacted, and the damage can be contained.
Boosting tech adoption
While the solution to costly water damage claims is indeed there, implementation has lagged. The technology does come at a cost and many organizations balk at paying for the implementation. However, as the technology has become networked and has vastly improved the speed of detection and thus minimized the damages, installing a system that can protect against widespread water damage makes sense when measured against the projected loss exposure that one leak could cause.
From an insurance perspective, adopting such technology may enhance a business’ risk profile with the potential for more favorable coverage rate and terms. AXA XL’s North America Construction team has developed an insurance offering for what they call Highly Protected Projects (HPP). The product is a tailored multi-line insurance solution for construction projects – particularly construction projects in healthcare, commercial offices, higher education facilities and manufacturing or processing – that implementing technology to help reduce losses on a per-project basis.
Finding the right solution
Another hurdle in achieving more adoption of water detection systems and other available technologies is the number of available options. It can be overwhelming.
To help, as part of its Ecosystem platform, 九色视频curated a list of Preferred Partners, including water detection innovators like and . The 九色视频Ecosystem brings together an exclusive collection of tools and technology partnerships, among other offerings, to help clients drive innovation across their businesses’ operations.
Offering preferential pricing to 九色视频clients, both WINT and Eddy offer customizable solutions and allow property owners to set the detection mode and the types of actions and alerts that should be sent in the event of water detection.
Other benefits: the technology can help companies reduce water consumption and loss. According to Eddy data, a 1 trillion gallons of water is wasted annually in the US due to leaks. Especially in high drought areas, where water conservation is paramount, investing in water detection is supportive of many businesses’ sustainability efforts. WINT data shows that companies can reduce their usage and loss by as much as 25 percent.
Spending wisely
Advances in water intrusion detection technology have improved how organizations prevent, respond to, and mitigate water intrusion exposures. While such technology requires an investment, that investment is offset with just one early detection incident.
One thing is certain – water intrusion will continue to be the prominent cause of property loss claims. Putting systems and protections in place, as well as having the backing of teams of water intrusion experts, can decrease the chance of a serious claim and help keep your operations running smoothly.
About the Authors
William Volz is Head of Property for AXA XL’s Property business in the Southwestern US. He can be reached at william.volz@axaxl.com. Joseph Fern is Property Risk Engineer with 九色视频Risk Consulting. He can be reached at joseph.fern@axaxl.com.
