IoT: A game changer for preventing water damage losses

From a jogger’s heart rate, to humidity levels in a wine cellar to the condition of machinery and equipment in a factory, Internet of Things (IoT) technology involves a network of devices and sensors that can monitor, collect and share data about just about anything.

Deploying strategically placed IoT-enabled sensors, risk engineers at Chubb help clients take loss prevention into the digital age. The sensors monitor key areas for water leaks, changes in temperature or humidity, vibrations and other infrastructure concerns.

We spoke to Hemant Sarma, Chubb Senior Vice President, Head of Internet of Things, about the ways IoT is proving to be a game-changer for preventing water damage losses.

How do IoT sensors work?

Small, battery operated IoT sensors are installed at critical locations within a building or facility, such as boiler and mechanical rooms, HVAC and fire sprinkler systems. These sensors monitor and detect the slightest changes to temperature, humidity, and water leaks, as well as factors that could indicate an increased risk of water damage. Chubb has successfully deployed IoT sensors in residential buildings and private homes, hospitals, research labs, universities, libraries, commercial properties, and even private wine cellars and rooms with private art collections.   

Sensors send 24/7, real time alerts directly to an app on the client’s smartphone and an intuitive dashboard pinpoints the reported issue. The actionable intelligence that IoT provides on common issues can help save thousands or even millions of dollars.

IoT sensors act as a virtual watchdog, detecting burst pipes, roof leaks, overflowing toilets, and leaking appliances that can cause significant damage, with staggering losses well into the millions of dollars. IoT sensors are transforming the old way of maintaining a residential building, from a “repair and replace” approach to a new, modern “predict and prevent” model.

Can you share examples of IoT sensors in action? 

One of our clients, a major east coast hospital, suffered significant water damage that originated from a roof hatch, which was located immediately above the pediatric unit. The following year, we collaborated with this hospital on installing IoT sensors to help prevent a water damage recurrence. Shortly after installation, the sensors demonstrated their value, immediately alerting facility management and Chubb risk engineers to leaks on three occasions. In each case, the issues were fixed before there was any damage, potentially saving millions of dollars as well as the loss of use of sensitive hospital equipment. 

Another of our clients, a liberal arts college in New England, opened a major new research facility, which was equipped with Chubb-installed sensors. One day, not long after the facility opened, a drain valve was inadvertently left open. Water began pouring into a laboratory on the fourth floor. Facility management was alerted instantly, and they were able to quickly isolate the source and shut off the waterflow. 

As you can imagine, this could have been a devastating loss. Had the leak not been detected and contained, water cascading down from the top floor would have inundated sensitive laboratory equipment throughout the facility, potentially causing millions of dollars of losses.

A residential example of an actionable alert resulted from a dislodged washing machine fill hose that was pumping water into the laundry room. The resident was less than 10 feet away when this malfunction occurred, but she was completely unaware of the problem. The issue was quickly addressed as a result of the real-time alert and significant damage was averted, avoiding the potential need for both flooring and ceiling repair or replacement.  

Books and water are not a good mix, and sensors have proven their value at Allen County Library in Fort Wayne, Indiana, a sprawling complex of about half a million square feet and home to the second largest genealogy center in the United States. When an anti-freeze leak triggered enough steam to activate the library’s sprinkler system, an immediate IoT alert from Chubb sensors identified the precise location of the problem. Without the IoT alert, the sprinklers would have soaked the room for hours before the real source of the issue was identified.

What kind of alerts does a customer receive on his/her smartphone? 

The alerts are tiered according to severity from advisory to actionable. 

Take, for example, a pipe freeze condition. The client may get an advisory alert that the indoor temperature is dropping and is abnormally low, indicating that a heating system may have failed. If the temperature drops further, which could lead to a potential leak, the client gets an actionable alert. All actionable alerts provide an email, text, and are followed-up with a phone call from our customer service team. In the event of a burst pipe, the client would get an immediate actionable alert. 

If a homeowner is traveling – on the other side of the world, even – they have the of peace of mind of knowing that they’d be alerted to the potential of water damage and could take action to prevent the destruction of their property. 

On weekends, evenings or holidays, when a school, research lab, office building or library may be closed or unoccupied, the IoT sensors act as the first line of defense against water damage.

How significant a problem is water damage?

Chubb’s claims data shows that non-weather-related water damage is the second most common cause of loss. The average water damage claim cost is upwards of $90,000 for commercial properties. Financial costs are only part of the story; consider the disruptions associated with having to close classrooms, evacuate tenants or shut down a hospital wing due to flooding.

For our personal clients, water damage can destroy precious valuables, make your home uninhabitable or even contribute to a loss in property value. But that’s why we’re actively exploring new ways to use IoT technology as part of our loss prevention services: At Chubb, it’s our mission to do everything we can to help our clients avoid costly damage and time-consuming repairs. And the best way to do that is to prevent a small issue from becoming a much bigger problem.