Will a Water Risk Mitigation System Affect My Insurance Cost?
If you’re considering a water mitigation system for your building, one of the most pressing questions you’re asking is probably: will a water risk mitigation system affect my insurance cost?
The short answer is: yes.
But there’s more than one way that a water mitigation system can affect your insurance cost.
Reduced Chances of a Claim
Currently, multi-residential high-rises have a 30% chance of making a claim each year, and 48% of those claims are due to water damage.
This greatly affects all stages of building and operating a multi-residential high-rise.
At the building stage, 10% of builders can’t get insurance.
At the operational stage, insurance premiums are rising by up to 780% and deductibles are increasing to $500,000.
The average claim cost due to water damage ranges between $150-$250k, affecting your premiums and resulting in facility down time.
By setting up a water mitigation system for the purposes of early flood detection, you decrease your chances of needing to make a costly and time-consuming insurance claim.
Reduce the Chances of an Uninsured Incident
Unfortunately, not every water damage incident is covered by a condominium corporation’s insurance. Your insurance provider will be able to provide the details of your coverage for you.
In some cases with condominiums, the owner may be responsible for the cost of the insurance deductible. The flow chart below summarizes the differences between insured and uninsured claims.
You can also read more here.
How Connected Sensors Can Help You
By preventing floods through monitoring systems, Connected Sensors can help you reduce the chances of costly deductible payouts.
Furthermore, we have partnered with NFP Insurance to offer long-term cost savings to insurance by potentially helping you save on front end premiums.
We can also help you incorporate submetering to lower your water cost further by charging expenses back to tenants, or save on overall water cost by identifying leaks.
In summary, a water risk mitigation system can affect your insurance cost, as well as overall cost, by:
-During the building phase by decreasing the chances of remaining uninsured
-During the operational phase by decreasing costly deductible payouts and potentially lowering your front-end premiums
-As part of day-to-day operations when used in conjunction with submetering
If you have any questions about how we can help you save on insurance costs, be sure to contact us.
Your Connected Sensors Team