How Water Sensors and Leak Detection Technology Affect Homeowners Insurance
Water damage, combined with freezing, represents the second most common cause of home insurance claims, following wind or hail damage. According to the Insurance Information Institute, the average loss of such claims was roughly $14,000 between 2018 and 2022. Adding water sensors and leak detection technology can provide peace of mind—and save homeowners a significant amount of money and hassle.
Understanding the Risks of Water Damage
Water damage can be caused by external sources, like storms and flooding, or by internal sources, such as a burst or leaky pipe. While seasonal maintenance can help protect your property, accidents sometimes happen.
Common causes of water damage include the following:
- Leaking roofs
- Broken or leaking pipes
- Water overflow from sinks, toilets and tubs
- Malfunctioning appliances
- Clogged gutters
- Sewer backups
According to the Federal Emergency Management Agency (FEMA), a single inch of water can cause $25,000 in property damage.
How Do Water Sensors and Leak Detectors Work?
Water sensors detect the presence of water or changes in moisture levels. If placed in areas that should be dry, these devices can alert homeowners to leaks. The growing popularity of smart home technology makes it easy and affordable to add these useful sensors to an existing system—or to take the plunge and include leak detection in a new system.
Some detectors rely on bottom-mounted sensors to determine the presence of water. Some models include probes on the top that can detect falling drips. Consider sensor placement when choosing devices for your home.
Once a leak is detected, most sensors and systems provide a local alert, such as audible alarms or visual indicators. Many systems integrate with smart-home platforms (e.g., Amazon Alexa, Google Home, Apple Home), although some require buying a separate hub for Wi-Fi connectivity. Others only send email or mobile alerts.
Advanced systems can shut off the water supply upon detecting a leak, offering even greater protection.
Where to Place Water Detection Technology
In general, position water sensors in areas where water damage is likely to occur. Washing machines and dishwashers, for instance, may leak. Toilets can overflow. Hot water heaters can fail.
Consider positioning sensors in the following places, and keep the specific use in mind when evaluating features:
- Refrigerators with ice makers and water dispensers
- Dishwashers
- Washing machines
- Hot water heaters
- Furnaces and boilers
- Sinks
- Toilets
- Aquariums
- Basements
Early warning of water issues can help avoid serious damage, but don’t forget to conduct regular inspections and perform routine maintenance to prevent leaks in the first place.
Homeowner Benefits of Water Detection Systems
An early leak detection system not only offers peace of mind, but the technology is also much cheaper than repairing extensive water damage. Even basic devices can help prevent a small, relatively inexpensive issue from ballooning into an expensive headache.
Water detection technology can also lower insurance premiums—or keep a policy in force for insurers that require a system. Some insurance companies partner with manufacturers to offer hardware or installation discounts to policyholders.
City Building Owners Insurance can provide insight into how water sensors can protect your home.
For a free, no-obligation insurance review or questions about your existing homeowners policy, please call City Building Owners Insurance at 877-576-5200.
