WATER DAMAGE -FREQUENCY

July 6, 2017

The likelihood that a loss will occur. Expressed as:

Low frequency (meaning the loss event is possible, but the event has rarely happened in the past and is not likely to occur in the future)

Moderate frequency (meaning the loss event has happened once in a while and can be expected to occur sometime in the future)

High frequency (meaning the loss event happens regularly and can be expected to occur regularly in the future)

FREQUENCY

RISK TREATMENT

Water damage is the most frequent type of claim in community living

BACKGROUND INFORMATION

2015-16 data collected from BC and Alberta markets

350 Paid Losses

Water losses in general have risen compared to fire losses

LOSSTYPE- CATEGORY FREQUENCYAPPLIANCES 81

BURSTPIPE 84

DECK 3

HOSEBIB 2

ROOF 6

SEWERBACKUP 49

SPRINKLER 21

WATERDAMAGE 46

WATEROVERFLOW 58

GRAND TOTAL 350

BURST PIPE RESULTSCAUSE FREQUENCY SEVERITY AVERAGE

Other 61 $3,763,434 $61,696

3rd PartyPuncture

10 $422,802 $42,280

Puncture 4 $125,417 $31,354

WHY DO PIPES BURST?

Pinhole LeaksSupply lines to toilets/other appliances

Punctures (owner and third party/ screws and nails)Drain Seal Fail

Drain Pipe SeparationIrrigationFreezing

Other – Sewer Back-Up

BURST PIPE RISK MANAGEMENT – BEFORE A CLAIM

• By-Law requiring renovations completed by a licensed professional with valid insurance

• Approved by the council/board• Construction or other permits provided• Resident: know where your water shut-off

valve is prior to any work

BURST PIPE RISK MANAGEMENT – BEFORE A CLAIM

• Occupier provides evidence of valid insurance with deductibles that match building/community deductibles –encourage Business Interruption and Additional Living Expenses

• Fine violators of the by-law• By-Laws and Charge-Backs to unit owner when claim is

under deductible (where allowable by law)• Supply lines • Water Lines / Schematics• DIY / TVB installers – drill a hole, check for pipe (can be

.5” – 1.5” from wall)

BURST PIPE RISK MANAGEMENT – BEFORE A CLAIM

Implement a plan – replumbing (with or without water leak detection system), winterization, water treatment. Things to consider: Where to put displaced unit owners / residents, managing permits, managing restoration timeline, pre-approved emergency services, working relationship with preferred vendor, etc.

BURST PIPE RISK MANAGEMENT – AFTER A CLAIM

• Resident – shut off water to unit • Fine violators of the by-law• By-Laws and Charge-Backs to unit owner when claim is under

deductible• Report incident to board to notify owners/residents• Catastrophic losses in NY, PA, NJ: FS Project Management - http://www.fsprojectmanagement.comNegotiate costs with engineers and contractors, file permits, manage communications between board and interested parties including attorneys and other professionals Pros – keeps projects on schedule and within budget, takes work off Manager’s plate

PINHOLE LEAK – WHAT IS IT?

• Pitting corrosion on copper water plumbing

• Cu+ plumbing can last 50-100 years in hard water municipalities

• In areas of soft water, Cu+ plumbing can show signs of corrosion and leaking in as early as 10 years

PINHOLE LEAK – REMEDIES

• Putty the leak / Re-fitting• Water Treatment Systems• Eventually re-plumb–

frequent losses and deductible pay-outs can equal the cost of a total re-plumb in a few short years

FROZEN PIPES

• Protect your exposed pipes in attics, crawl spaces and garages – if you can see the pipe, it needs to be wrapped with insulation foam

• Winterize irrigation systems – turn off the water supply, shut down the sprinkler timer, drain down the system

Winterize outdoor faucetsI) Remove hoses, splitters or connections from the spigot (even if you have a freeze proof hose bib) II) Check all hose bibs, yard hydrants and other fixtures for leaks and drips –replace or repair any fixture which leaks or dripsIII) Turn off the water supply to the hose bib if it is not freeze proofIV) Install a hose bib cover on each outdoor fixture (add extra insulation to hose bibs that cannot be drained)

APPLIANCE RESULTS – TOP THREE OFFENDERS*EXCLUDES OVERFLOW

APPLIANCE FREQUENCY SEVERITY AVERAGE

DishwasherMalfunction/

Leak

16 $209,901 $13,119

WashingMachine 28 $453,295 $16,189

Toilet 19 $391,261 $20,592

DISHWASHER – CAUSES OF DAMAGE

• Drain/Supply Line

• Door Seal Leak

• Incorrect dishwashing detergent

DISHWASHER – RISK MANAGEMENT

• LeakPan• WaterLeak

DetectionSystem

• Newdishwashersmayhaveshutoffvalve

WASHING MACHINE - CAUSES OF DAMAGE

HoseBulgeIncorrectdetergent–OverflowLeakingValve

ABurstWashingMachineHosecanDischarge500GallonsofWaterinOneHour!

WASHING MACHINE – RISK MANAGEMENT

• Plumberinspection- annual• Steel– BraidedHose• LeakDetection• Auto-shutoffconnectorsautomatic

shutoffthewatersupplytoplumbingfixtures/appliancesifexcesswaterflowissensed

TOILET – CAUSES OF DAMAGE

• Supply Line• Stop Valve and

Locknut• Physical Damage

(tank crack & improper installation)

Sewer gas odor can indicate: • Pooling or stains a

base indicates a leaking bowl

• Stains on ceiling below = invisible leak

TOILET – RISK MANAGEMENT

Steel Braided Supply Lines

Leak Detection System

WATER OVERFLOW

SOURCE FREQUENCY SEVERITY AVERAGE

Sink&Backup

27 $756,023 $28,001

Toilet 17 $316,018 $18,589

Bathtub 8 $215,961 $26,995

SINK OVERFLOW – CAUSES OF DAMAGE

• Human Error• Drain backup

SINK OVERFLOW – RISK MANAGEMENT

• Drain Strainer• Chemical Unclogging Agent• Snaking • Drain Flushing

TOILET OVERFLOW – CAUSES OF DAMAGE

• Wornflapperdisruptingnormalflushing

• Normalclog• Foreignobjects

cloggingtheline–thetoiletisnotatrashcan!

SEWER LINE CLOGS

CAUSES OF BATHTUB OVERFLOW

• Human error (people falling asleep in a bathtub)• Problem with overflow drain - A tub overflow drain has a

gasket behind it that will get brittle and compressed over time. Water reaching the overflow drain opening goes into the overflow where the gasket meets the tub, and it will leak if the gasket is old and cracked and fails to seal properly.

BATHTUB OVERFLOW RISK MANAGEMENT

• Any leaks on ceilings below – encourage owners to alert the Board ASAP

• Notice any soft, spongy feelings on the floor near your tub

QUESTIONS?