New research highlights the lack of homeowner preparedness for non-weather-related water damage, even though water damage ranks as the second most prevalent cause of insurance loss claims. The Hanover Insurance Group, Inc., a leading provider of insurance for individuals, families and businesses, today released its 2023 Home Water Damage Prevention Report to raise awareness about the risks of water damage from leaky pipes, appliances and other household sources.
Key findings:
- Non-weather water isn’t top of mind for homeowners – Despite being a leading cause of homeowners’ claims, only 17% of homeowners said non-weather water damage is their biggest damage concern regarding their homes.
- Relatively few homeowners are taking basic preventive measures – Only 17% of homeowners said they have a water sensor in their homes. In comparison, 84% have smoke detectors, 51% have fire alarms, 48% have security cameras and 34% have burglar alarms.
- Higher net-worth homeowners are more willing to invest in preventive measures – Still, only 22% of homeowners with incomes of greater than $100,000 have water sensors in their homes today.
- Prevention technology education is needed – 68% of homeowners are not familiar with water sensors and 61% have never heard of a water shut-off device.
- Homeowners need risk mitigation motivation – 86% of homeowners cited reasons that would make them more likely to install a water sensor or shut-off device. The top three reasons overall were: receiving a discount (45%), learning that installation was easy (31%) or obtaining a recommendation from a professional (28%).
“Water is invasive, and there are some things even the very best insurance coverage can’t replace. When it comes to water, the best protection is risk prevention and it’s more critical than ever. Increasingly, proactive homeowners are discussing water with their independent insurance agents to deploy preventative measures and reduce exposure to water damage,” said Daniel Halsey, president of Personal Lines at The Hanover. “Our Home Water Damage Prevention Report points to an opportunity for homeowners to reach out to their insurance agent for counsel and insight relative to the risks involved and the technology available to mitigate those risks.”
Homeowners should consult with their independent insurance agent about risk management strategies to help protect against water damage and other home risk exposures. To support customers in their home water mitigation efforts, The Hanover has recently partnered with Water Security Solutions (WSS) and StreamLabs, taking a proactive and collaborative approach to risk management. WSS helps The Hanover’s customers determine the best compatible water mitigation system for their home plumbing configuration, and provides discounted pricing on the options. StreamLabs manufactures smart water leak monitoring and water shut-off devices that can be installed by The Hanover’s customers and qualify them for applicable discounts on their insurance premiums. These vendors are the newest additions to The Hanover’s Partners in Protection program.
The Hanover enlisted The Harris Poll to conduct the study. To read the full results from the 2023 Home Water Damage Prevention Report while exploring homeowner risk mitigation considerations please click here.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.