Water damage unrelated to weather is quietly driving up costs for American home insurers, with about one in every 60 insured homes filing a claim each year. Rising repair expenses, aging homes, stressed infrastructure, and extreme temperature changes are all making it harder for insurers to manage these losses using traditional methods. If insurance companies don’t find new ways to tackle this issue, they could face shrinking profits and tougher talks with reinsurers, while competitors who adopt smart home technology pull ahead.
A new study conducted by Moen, in partnership with a major national home insurer, offers some promising solutions. The research shows that Moen’s Flo Smart Water Monitor and Shutoff can significantly cut down both the number and cost of water damage claims not caused by weather. Besides helping prevent losses, the device also provides insurers with valuable data that can improve how they price policies and assess risk. This approach shifts insurers from simply reacting to claims to actively preventing them.
The white paper from this study highlights why water damage is such a big challenge for homeowners and insurers alike. It details how the Flo Smart Water Monitor can reduce claim frequency and severity, along with what these improvements could mean for an insurer’s business. By adopting connected home technology, insurers could turn a big expense into a manageable risk, putting them ahead in a changing market.
For home insurers concerned about rising water damage claims, the findings make a clear case to rethink how these risks are handled. Devices like Moen’s offer a way to lower costs and offer better protection for policyholders, all while gaining richer insight into the properties they insure. This could mark the start of a new era in property insurance, where smart tech and data lead the way in keeping homes safer.