Did You Know...? Part 4: Keys to Succcess

Did you know...

... there are critical Keys to Success in ensuring that your IoT technology solution will work to address and mitigate costly water issues in construction?   

In our previous articles, we explained that non-flood water damage claims in Builder’s Risk insurance programs cost the insurance industry a whopping $15 billion each year. Altogether, they represent over one-half of all insurance payouts, which do not include repair costs absorbed by the insured in deductibles or uninsured delays, soft costs, and project disruption. We also showed that many of these losses are either preventable or can be significantly mitigated.  

With IoT technology installed on the project, the goal is to eliminate larger water damage losses, the majority of which occur when water is allowed to run free for hours, days, or even weeks due to non-detection. As part of an overall risk management strategy, technology is an effective element to mitigate the potential for large water damage losses. 

When selecting water damage prevention technology, there are six keys to success:  

1. Choose the right tech for your needs. Technology-driven solutions are now available to meet a wide range of needs and requirements, whether for temporary use during construction projects or permanent solutions for operational buildings. As described in Article 2 of our series, the options range from non-intrusive sensor and surveillance technologies to AI-enabled water flow monitoring and shut-off valves. 
2. Deploy the sensors to provide optimal protection. Sensors should be placed where unwanted water may collect, such as stairways with risers, under roof hatches, or elevator pits; they can also be located near items that need additional protection such as high-value equipment, historic artifacts, or expensive millwork. 
3. Install the sensors with care. Most sensor solutions operate on wireless networks like home Wi-Fi systems. When deploying network equipment and individual sensors, make sure that all equipment is installed according to design specifications, and that each device has strong and uninterrupted connectivity to support 24/7 monitoring. 
4. Create a prevention and response plan. This detailed written plan should be developed with input from all stakeholders and provides clear guidance regarding individual roles and responsibilities in the event of temperature, humidity, water, or intrusion alerts. Along with this instruction, team members should have full access to a sitewide dashboard displaying the status of each device and be able to receive immediate notifications by phone call, text, or in-app messages. 
5. Explore potential insurance incentives and savings. Some Builder’s Risk insurance policies, such as those offered by Insight Risk, now offer significant reductions in deductibles for insureds that install water damage prevention technology. Further, Insight Risk now offers an additional deduction for insureds that demonstrate their commitment to resolving potential water loss issues in a specific timeframe. Together, these deductions can reduce deductibles by up to 50 percent, a dramatic savings that can amount to hundreds of thousands of dollars.  
6. Leverage technology to enhance overall risk management. Besides their potential benefits related to insurance costs and program structures, non-intrusive water sensors provide a wealth of data about building environments and facilities characteristics. Share these insights with contractors, maintenance and janitorial staff, insurance carriers, and brokers to enhance building safety and sustainability.  

Winning Combination: The Right IoT and Effective Response Systems Get Results

By implementing effective water damage prevention and mitigation solutions, contractors and building owners are realizing significant benefits and cost savings. Consider some recent examples:  

Northeast U.S. office building avoids damage

As an office building renovation was in the final stages of completion, sensors strategically deployed throughout the building identified water accumulation in the basement; the general contractor received an alert, responded promptly, and was able to clean the water and remediate the situation to prevent any damage.

Days later, the team was alerted to water intrusion on the third-floor stairwell when rain and cooler temperatures entered through an open roof access hatch. This, too, was quickly addressed and remediated before any damage was incurred.

 

Event center avoids damage from leaky hose, low temperatures, and humidity

Sensors placed carefully during construction of an event center prevented losses from multiple issues. First, water accumulation detected from a leaky hose being used in a drywalled stairway was quickly identified and cleaned up before any damage was sustained.

Next, as outside temperatures dropped to near freezing, sensors in part of the facility detected a drop in the indoor temperatures; prompt action avoided the potential of pipe freezing and burst.

Finally, interior rooms with extensive millwork and high-end finishes were susceptible to high humidity; sensors monitored these conditions and alerted staff of potential issues. As a result, construction was completed on time and on budget without any water-related incidents or delays. 

Rain intrusion detection prevents loss at major interior renovation

During an extensive multi-floor renovation, drywall installation had begun and construction materials were stored throughout the building. During a heavy rainstorm, an environmental sensor detected water; the contractor responded promptly and found that due to a roof leak, water was accumulating on an electrical box and near waiting drywall.

The roof issue was quickly remediated, and the contractor avoided any significant damage to the work completed or the materials stored.  

Over and over, the combination of strategically located and properly installed IoT technology and an effective response plan has been shown to prevent water damage losses, enhance safety, prevent construction delays, and save money.  

In our final article of the series, we’ll share insights on the next generation of solutions to address water damage risk, including their integration into an overall risk management and insurance program.     

"Did You Know ...?" is a series of articles created to help risk and construction executives identify, prevent and mitigate water damage and other perils affecting construction jobsites. This is the fourth article in the series. Previous articles were entitled: It’s a Problem, Solve Through Technology, and Technology Works. The final article will examine Our RiskTech Future. 

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