How Moen seeks to plug the leaks costing insurers

This article was produced in partnership with Moen.

Desmond Devoy, of Insurance Business Canada, sat down with Jeff Barnes, vice president, business development, to discuss the Moen Smart Water Network, Flo Smart Water Monitor and Shutoff, ESG, the impact of water leaks on the insurance market, and tips for stopping leaks before they become a problem.

Since there have been pipes to carry water, there have been leaks.

And ever since insurance policies began to cover water damage, pipes and policies have been in each other’s lives.

But in a conversation with Jeff Barnes (pictured), vice president, business development, Moen Smart Water, we discover more about Moen’s smart water security products and how the company seeks to save insurance companies money, save water, and prevent damage to policyholders’ homes.

Q – What role do smart water products, particularly the smart water security products, play in your ESG (Environmental, Social and Corporate Governance) story?

A – Within the broad umbrella of “ESG”, we focus on activities that are most meaningful to our business, and where we can have a real impact, and our Moen Smart Water Network – an integrated system of products working to monitor and enhance users’ experiences with water in the home while facilitating water conservation – is one of those areas.

In particular, we think our Flo Smart Water Monitor and Shutoff can have huge positive impacts for people, businesses and the planet. The Shutoff connects to the home’s main water line and measures pressure and flow rate within the home’s water supply system, as well as ambient temperature – delivering data to the homeowner via the smartphone app, This enables the device to monitor and help detect water leaks and other vulnerabilities in the water supply system. If an abnormality is detected, the device will notify the homeowner – who can turn off the water from the Moen Smart Water App – or the system can be set to automatically shut off water to help prevent catastrophic damage.

Based on our conversations with insurance companies, we know that there are a lot of claims from water damage due to preventable leaks. In fact, homeowners are much more likely to file an insurance claim for water damage than for fire or theft.  Insurance companies spend billions on these preventable water claims.

Leaks may be relatively small, but they add up to a lot of wasted water. Even one slow leak can amount to over 11,000 litres of water wasted in a year. A burst pipe when no one is home can easily waste over 37,000 litres of water in just a few hours.

Not only can our products help prevent this type of water waste, they can also have an impact on reducing carbon emissions. The water that runs through homes is treated, and that process takes energy. We’ve made a commitment as part of our Mission Moen initiative to help consumers save 1 trillion gallons (or more than 3.7 trillion litres) of water. We estimate that if we reach this commitment, that would be equivalent to 4.7 metric tons of carbon dioxide avoided.

So from an ESG perspective, we have a unique opportunity to grow our business with these connected products, and those products can save the insurance industry money and homeowners money. We are also saving homeowners the disruption and stress of dealing with catastrophic water damage. Our connected water products are a win all around. 

Q – What’s Mission Moen? 

A – Mission Moen is our commitment to innovate products that enable consumers to save up to a trillion gallons of water by 2030. To put that in perspective, one trillion gallons is the amount of water that runs through Niagara Falls in more than a two-week period.

Another great part of Mission Moen is our additional commitment to repurpose 2,000 tons of ocean plastic, by 2030, showing one way that we incorporate sustainability into our product design practices.

Q – How prevalent are leaks in residential properties?

A – Water damage is 6x more likely than fire and 8x more likely than theft, according to the Insurance Information Institute, with leaks being one  of the leading causes of preventable insurance claims each year.

Q – Is this a growing problem?

A – Water damage continues to be one of the top causes of insurance claims. In fact, Allstate found that over 40% of property claims from 2019 to 2022 were tied to water damage. Part of the issue is that homeowners often are not even aware their home is experiencing a leak – whether it’s a running toilet or a leaky pipe behind the wall.

Q – What is the most common cause of these leaks?

A – Leaks can vary from small drips from a faucet to running toilets to something catastrophic like a burst pipe. That’s why it’s important to consider investing in a smart leak detection device, to help prevent and detect leaks before they damage your home. Moen offers the Flo Smart Water Monitor and Shutoff, which is installed on the home’s main water line and works 24/7, to monitor for potential water risks and leaks. It can intelligently and automatically take action to notify the homeowner and automatically shut off the home’s water to reduce the risk of water damage. With this technology, even small leaks, as small as one drop per minute, can be detected immediately. In fact, the Flo Smart Water Monitor and Shutoff can help reduce more than 90 percent of annual household water waste when potential leak issues are promptly addressed and, within 30 days of installing the Flo Smart Water Monitor and Shutoff, 60 percent of homeowners discovered a leak they didn’t know they had.

Q – How much dollar damage do they cause, on average?

A – According to the Insurance Information Institute, the average insurance claim for non-weather-related water damage costs about $17,000 CAD.

Q – What is the best way to detect leaks before they become worse? What is the best way to prevent leaks?

A – The best form of detection is prevention. Moen's Smart Water Security System gives homeowners 24/7 protection and total control over their home’s water. The System is comprised of several unique innovations that combine to provide an unparalleled whole-home water security and management solution, with the ability to control the system from the corresponding Moen Smart Water App.

First, the Flo Smart Water Monitor and Shutoff is the brain of Moen’s Smart Water Network.  This game-changing leak detection and water monitoring device is installed on the water lines going into the home and can automatically turn off the water to the home if a leak or risk are detected. It provides automated water security by monitoring water pressure, flow rate, and ambient temperature, while running daily Health Tests to check for leaks and other abnormalities. If the device senses a home has a leak or is at risk, it will alert the homeowner so they can take action through the app from anywhere, or the device can be set to close the water valve automatically and help prevent damage. With the Flo Smart Water Monitor and Shutoff, homeowners also can monitor water usage, by fixture type, where Moen smart water devices are located. This data also provides the ability to set conservation goals and be more mindful of resources.   

The device can pair with other leak detection products for whole-home protection. One of the first lines of defense are Smart Leak Detectors, which can be placed anywhere in the home prone to water damage – such as around appliances or under sinks – to let users know when water or high moisture levels are detected so they know when water is in areas where it shouldn’t be.  For protection against ingress flooding, a sump pump is often the last line of defense. The Smart Sump Pump Monitor detects potential risks or failures and alerts homeowners through the app before the rising water overflows and causes damage.

All of the Smart Water Security products are controlled through the Moen Smart Water App, which connects users to their water 24/7, allows them to receive automated alerts and understand their home’s water performance right from the palm of their hand.

Q – Does your company work with insurance companies to help increase awareness of leak detection and prevention?

A – Moen continues to work with insurance companies to offer added benefits to the homeowner. Given our product’s ability to help significantly reduce water damage risk – the Flo Smart Water Monitor and Shutoff is proven to decrease water damage incidents by 96% – many insurance providers have chosen to offer reduced premiums to homeowners who install one of our devices. We’re always looking to expand our work with insurers and find new ways to partner to help educate their customers about the incredible benefits of smart leak detection products.