Device Could Reduce 93 Percent of Homeowner Water Damage Claims

Water caused $9.1 billion in annual homeowner policy property losses from 2007 to 2009 – approximately 23 percent of all homeowner property losses. But up to 93 percent, or almost $8.5 billion, of the cost of water damage could have been prevented or minimized if an automatic water leak detection and shut-off system had been present in the homes, according to an ACE Private Risk Services study of damage sustained by affluent homeowners.

An automatic water leak detection and shut-off system could prevent or greatly reduce water damage caused by leaking pipes, plumbing fixtures, hot water heaters, appliances and heating and cooling systems.

ACE estimates the average cost of repairs for water damage could exceed $20,000, compared to only $6,000 for damage related to roof leaks and other causes of loss that the system would not have prevented.

The study found that implementing the system can also help homeowners conserve water.

Source: ACE Group