Increased Water Damage Risk for Home Insurers

From inclement weather as a result of climate change to more Canadians finishing their basements to appliance leakage and accidental discharges, water claims across Canada are on the upswing, per a study from KPMG. As a result of this, many insurance companies are looking for better ways to assess risk and help property owners avoid potential damage as a means of keeping premiums low. There are a variety of things that property owners can do, from ensuring proper drainage around their homes and businesses to ensuring that certain precautions – like sprinkler stopper tools – are in place in large commercial properties.

In this post, we’ll take a closer look at why there’s an increased water damage risk for property owners and what you can do about it:

Why the Increased Risk?

Like we said in the opening, there are several factors that are contributing to more water damage insurance claims. These include the likes of:

  • Climate change: More severe weather is leading to more property damage throughout the world, let alone North America.
  • More finished basements: More Canadians are now finishing their basements to create more functional living spaces. However, without proper waterproofing or drainage, water is likely to find its way into basements and damage property.
  • In-property leaks: Leaking pipes, leaking water-using appliances and accidental discharge of sprinkler safety systems are also leading causes of water damage.

How to Mitigate Risk with a Sprinkler Stopper

Many insurance companies are looking for more ways to help property owners mitigate risk as a result of upward claims activity. And if you own or manage a large commercial property, one safeguard that you’ll want to take into consideration is accidental sprinkler activation. It’s estimated that a single sprinkler can release up to 60 gallons of water per minute. And when you consider that accidental discharges are on the rise and many properties rely on the fire department to deactivate a commercial sprinkler system, this can lead to a flooded mess in no time flat. That’s where a sprinkler stopper such as the Shutgun comes in handy. Rather than wait 20 minutes for the fire department to arrive and watch your property flooded with water, you can manually turn off the system yourself in a matter of seconds.

Other Tips to Prevent Property Damage

There are various other tips to help prevent water damage to properties. These include:

  • Ensuring that gutter downspouts drain a safe distance away from the property to avoid water pooling around the foundation.
  • Clean the gutters and downspouts regularly, especially if your property is in an area with heavy foliage.
  • Watch out for inclement weather. If a bad storm is predicted, it might be worth it to move valuables to higher ground just in case.
  • Inspect water-using appliances: Make sure you regularly inspect washing machine hoses, ice makers, dishwashers and other water-using appliances for leaks or damage.

Remember, an increased number of water damage claims is likely to lead to an overall increase in insurance premiums, so taking action collectively to prevent damage today is going to benefit all Canadians in the future.

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