WATER DAMAGE -

SEVERITY

September 7, 2017

SEVERITY / IMPACT

The amount (usually in $) of the losses resulting from the event.

The amount of damage that is (or that may be) inflicted by a loss or

catastrophe – usually depicted in tangible terms in economic terms, but

includes property damage and bodily injury/life loss. Sometimes

quantified as a severity rate, which is a ratio relating the amount of loss

to values exposed to loss during a specified period.

RISK TREATMENT

Water damage can create some of the

most severe claims 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 SEVERITY

APPLIANCES $1,537,865

BURST PIPE $5,164,615

DECK $99,723

HOSE BIB $56,027

ROOF $89,212

SEWER BACKUP $972,504

SPRINKLER $1,921,046

WATER DAMAGE $1,010,952

WATER OVERFLOW $1,408,424

GRAND TOTAL $12,260,369

APPLIANCES

APPLIANCES

Dishwasher - $209,901

Hot Water Tank - $121,553

Sink - $17,500

Refrigerator - $253,915

Toilets - $391,261

Washing Machines - $453,295

Water Filter - $23,419

Excludes: Overflow

APPLIANCE RESULTS

APPLIANCE SEVERITY LOSS DESCRIPTION

Refrigerator Supply Line

$127,674*

Water supply line to refrigerator in unit 1503 failed; resultant

damage to units below

Toilet Supply Line

$67,500*

Toilet supply line leak in 706 causing damage to same and 705

Sink Pipe Burst

$67,021*

Burst pipe under kitchen sink in 2302 also affected other units

next door and below

REFRIGERATOR – CAUSES OF DAMAGE

AND RISK MANAGEMENT

Connection and Supply Lines

• Moving the fridge (cleaning/dropped items):

i) loosens connection lines / pops supply lines off

ii) crimps supply lines which causes pinhole leaks

DO

• Change Hose every 4 Years

• Use local leak detection

• Know where the fridge shut-off valve is

(usually under the sink)

REFRIGERATOR – CAUSES OF DAMAGE

AND RISK MANAGEMENT

Ice Maker Leaks

Clogged lines can cause water to not reach the ice water

Water may leak from the fill tube extension

Water valve may be leaking

Defrost water drain may be cracked or overflowing

Hot and Cold fluctuations at Gaskets

Check for water on the exterior of the refrigerator case

Turn off the icemaker and water supply to icemaker

(usually found under the sink)

REFRIGERATOR – CAUSES OF DAMAGE AND RISK

MANAGEMENT

Drain Clog

Drain lines / blocked defrost drain become blocked with

bits of food, which can lead to ice buildup, prevents them

from draining water effectively

Clean drain lines regularly with chlorine bleach

REFRIGERATOR – RISK MANAGEMENT OTHER

TOILET – CUASES OF DAMAGE AND

RISK MANAGEMENT

Toilet Supply Line – Toilet Fill Valve Nut Loose • Sand and sediment particles, wears down rubber gaskets

of supply line and fill valve and prevent “flat” sitting • What you’ll see – small puddle on the floor

TOILET – CUASES OF DAMAGE AND

RISK MANAGEMENT

Toilet Supply Line – Steel braided

• Weak spots come can cause wear and tear over time

TOILET – CONSIDER:

Knowing how to shut off your toilet valve Recognize signs of a potential leak: • sounds of running water • the need to “jiggle” the handle to

complete a flush • trickling water on inside of bowl • hissing noise Purchase a leak detection system Perform a leak test using a toilet tablet or food colouring Maintain adequate limits of personal insurance including water damage and sewer back-up

Water must sit below overflow pipe

Sand and Sediment

Valve Plastic end can get stripped, allowing it not to close the packing nut Switch plastic piece to metal (beware of metal-looking plastic piece)

Water Shut-Off Valve

Water Shut-Off Valve

Important: • Know what it looks like • Know what tools you need

to turn the valve to a “closed” position

Toilet Fill Valve – Side View

Toilet Fill Valve – Top-Down

Toilet Fill Valve – Top Down, cap off

Supply Lines, Rubber Gasket

Toilet Fill Valve, Professional Grade

SINK LINE– RISK MANAGEMENT

Looks like: Water gushing from under the sink, very quickly Basket strainer broken / puncture What may have happened: Water can force a supply line loose Water pressure skyrocket in one particular area Under Do: Turn off water to unit / sink Main valve for supply line replacement Call a professional

SINK VALVE

SPRINKLERS

SPRINKLER RESULTS

CAUSE SEVERITY LOSS DESCRIPTION

Sprinkler Head- Activated

$290,000*

Sprinkler head triggered in unit 1702; water damage to several units and

common areas

Sprinkler Pipe Burst

$257,500

Unit 516 had sprinkler pipe burst causing damage to same and below

Sprinkler Head- Activated

$200,000

Resident in unit 607 hung laundry from a sprinkler head; water damage

to several units and common property, including elevators.

SPRINKLERS – CAUSES OF DAMAGE

• Accidental activation – towels, tennis balls,

weights/skipping rope in a fitness room, outside grill

used indoors, hanging clothing (wedding dresses) and

misc. items (costumes, decorations, TVs, candle

holders), move-ins/move-outs, hidden sprinkler heads

• Burst pipe – frozen, puncture

• Fire

SPRINKLERS – RISK MANAGEMENT

Turn off water supply – only if pre-negotiated –

CAN VOID BUILDING INSURANCE

Note – councils/boards/building caretakers only

SPRINKLERS – RISK MANAGEMENT

Prevent manual hit activation with sprinkler cages

(focus in common hallways, gyms, inside small closets)

Spring-mounted/Screw-in

SPRINKLERS – RISK MANAGEMENT

Prevent fire (fire extinguishers, smoking by-laws, sprinkler

system extended to balconies of wood-frame buildings

where BBQs are allowed, HAVEN fire suppression)

SPRINKLERS – RISK MANAGEMENT

Temporarily plug a sprinkler line

BURST PIPE

BURST PIPE RESULTS

CAUSE SEVERITY LOSS DESCRIPTION

Accidental

Burst

$687,313

Hot water pipe burst in a wall of unit 1204; water damage to this units, others below and common property. Water also

shorted fire alarm system.

Accidental

Burst

$669,288

15th floor hot water line burst, causing damage to common hallway and units

below

Accidental

Burst

$644,443

Water damage resulting from failed hot

water pump on 14th floor common hallway

WHY DO PIPES BURST?

Pinhole Leaks

Supply lines to toilets/other appliances

Punctures (owner and third party/ screws and nails)

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 / INCIDENT

• 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 / WATER INCIDENT

Implement a plan – re-plumbing (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 /

WATER INCIDENT

• Resident – shut off water to unit

• Notify neighbours and building manager asap

• 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 up to

50 years in hard water

municipalities

• In areas of soft water, Cu+

plumbing can shows signs of

corrosion and leaking in as

early as 10 years

PINHOLE LEAK – REMEDIES

• Putty the leak / replace

sections of pipe

• 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)

I) Check all hose bibs, yard hydrants and

other fixtures for leaks and drips –

replace or repair any fixture which

leaks or drips

II) Turn off the water supply to the hose

bib if it is not freeze proof

III) Install a hose bib cover on each

outdoor fixture (add extra insulation to

hose bibs that cannot be drained)

Water Treatment -Ca+

in areas of soft water

The impeller had been coated with calcium. It should be shiny, raw metal, silver in colour, after 3 months with a water treatment system

3 year Ca+ Buildup in Water Line

QUESTIONS?