Water damage incidents are the leading cause of preventable homeowner insurance claims each year — with the insurance industry spending more than $2 billion on non-weather-related water damage claims last year alone.* On July 1, the National Association of Mutual Insurance Companies (NAMIC) recognized Flo by Moen and Mutual Assurance Society of Virginia (MASOV) with the 2020 Award in Innovation for developing a unique partnership to tackle this all-too-common — and expensive — problem through a creative pilot program with the Flo by Moen Smart Water Shutoff.
The Flo by Moen Smart Water Shutoff connects to the home's main water line and calculates pressure, flow rate and ambient temperature within the home's water supply system — delivering data to the homeowner via the Flo by Moen smartphone app. This enables the device to monitor and help detect water leaks and other vulnerabilities. If an abnormality is detected, the device will notify the homeowner — who can turn off the water from the app — or the system can be set to automatically shut off water to prevent catastrophic damage.
Flo by Moen and MASOV's pilot program aimed to help MASOV members prevent water leaks and damage in their homes — thereby reducing claims and lowering costs for all members. The program offered a select group of MASOV members the opportunity to install a Flo by Moen Smart Water Shutoff in their homes completely free of charge.
"Over the course of nine months, approximately a third of our select group of members chose to install a Flo by Moen Smart Water Shutoff in their homes, and we've all been thrilled with the results," said Jeffrey S. Wrobel, president and CEO, MASOV. "We estimate that the program has returned more than $250,000 in savings to our members so far, and the best part is, the devices will help prevent water damage in the future as well, continuing to provide both protection to homeowners and cost savings to all our members. We hope to roll out this process to thousands more homes in our portfolio."
The findings from this partnership reflect broader trends in the industry and further illustrate how taking preventative action is instrumental to reducing water damage claims.
"A recent study with Lexis Nexis* showed that one year following installation of the Flo by Moen Smart Water Shutoff, homes saw a 96 percent decrease in paid water leak claims compared to two years prior to installation — while control group home claims increased 10 percent in this same period," said Gabriel Halimi, CEO and co-founder of Flo by Moen. "Data like this, as well as the results of our innovative partnership with MASOV, showcase how beneficial it is for the insurance industry to be proactive about preventing claims, and how using the latest trends and technology can help prevent loss, reduce risk and lower insurance costs significantly."