WATER DAMAGE - FREQUENCY July 6, 2017
FREQUENCY 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)
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
LOSS TYPE- CATEGORY FREQUENCY APPLIANCES 81 BURST PIPE 84 DECK 3 HOSE BIB 2 ROOF 6 SEWER BACKUP 49 SPRINKLER 21 WATER DAMAGE 46 WATER OVERFLOW 58 GRAND TOTAL 350
BURST PIPE RESULTS CAUSE FREQUENCY SEVERITY AVERAGE Other 61 $3,763,434 $61,696 3rd Party Puncture 10 $422,802 $42,280 Puncture 4 $125,417 $31,354
WHY DO PIPES BURST? Pinhole Leaks Supply lines to toilets/other appliances Punctures (owner and third party/ screws and nails) Drain Seal Fail Drain Pipe Separation Irrigation Freezing 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, preapproved 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.com Negotiate 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 faucets I) 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 drips III) Turn off the water supply to the hose bib if it is not freeze proof IV) 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 Dishwasher Malfunction / Leak 16 $209,901 $13,119 Washing Machine 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 Leak Pan Water Leak Detection System New dishwashers may have shut off valve
WASHING MACHINE - CAUSES OF DAMAGE Hose Bulge Incorrect detergent Overflow Leaking Valve A Burst Washing Machine Hose can Discharge 500 Gallons of Water in One Hour!
WASHING MACHINE RISK MANAGEMENT Plumber inspection - annual Steel Braided Hose Leak Detection Auto-shutoff connectors automatic shut off the water supply to plumbing fixtures/ appliances if excess water flow is sensed
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 Worn flapper disrupting normal flushing Normal clog Foreign objects clogging the line the toilet is not a trash can!
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?