Leak detection may not be at the forefront of every property owner’s mind. However, it is becoming an increasingly important consideration for construction sites and operational buildings alike. Nowadays, insurance companies advise installing automatic flow monitoring and smart shut-off valves, also referred to as leak prevention systems. These devices minimize the likelihood of water damage.
How dangerous is water damage?
Water damage is a serious issue, and statistics show that it is almost twice as likely to occur as fire or theft alone. In fact, 2 out of 3 construction sites will report water damage, which can be incredibly costly. Without a leak prevention system, a typical construction project will suffer damages costing the developer the insurance deductible. Each claim can be in the range £50k-£250k.
Assuming an average of £150k deductible, spreading the projected cost across a portfolio of sites means the total average cost is £100k per project! Additionally, the cost of delays could be even more significant, costing up to 10 times more.
However, by installing a leak prevention system, only 1 out of 10 projects will suffer damages. The capital cost of installing a leak prevention system could be around £30k per project, however you have now saved £55k per project on average! As well as the reduction in insurance claims during construction, any potential delays from escape of water will be avoided.
What is an automatic flow monitoring and smart shut-off valve?
Automatic flow monitoring is done by an electronic device that reads a water meter and either stores the data in memory or sends the data to an online database. The smart shut-off valve uses this flow data to understand the normal consumption profile of the area it’s monitoring and shut the water off in the event of a serious problem to prevent water damage, insurance claims, and disruption. The system ought to notify relevant individuals about any issues via the internet. For the entire solution to qualify as a ‘leak prevention system’, it must incorporate software that manages alerts and allows multiple user access – giving full visibility and tracking of potential leaks to all stakeholders.
In a construction environment, the key people on site will receive alerts. For an operational building, the managing agent, building/facilities manager, or concierge will receive alerts. They will then have the ability to send access for individual or groups of apartments to other users including apartment owners and tenants.
Installing a leak prevention system not only reduces insurance deductibles and premiums but can also help to reduce water consumption, save money, save energy, and cut carbon footprint. It is clear that this is an investment worth making, and it is likely that insurers will soon make it a requirement for all construction sites and operational buildings.
In summary, leaks can cause significant damage and disruption, so it is important to take preventative measures. Automatic flow monitoring and smart shut-off valves are a simple yet effective solution that can save property owners a considerable amount of money and hassle in the long run. By investing in a leak prevention system, property owners can enjoy a smarter and greener building while also benefiting from insurance and water savings that compound year-on-year.
Or, let us help safeguard your property against water damage: