In the insurance world, it’s often said that ‘water’ is the new ‘fire.’ And the new normal for annual catastrophic losses related to water damage is around $2 billion, according to the Insurance Bureau of Canada (IBC).
But the problem is even more acute in high-rise construction projects, where it can be hard to pinpoint a leak, or when a leak occurs at night, or on the weekend when the site is unoccupied. That means a small leak can turn into millions of dollars in damage during a project.
Severe water damage causes several challenges for construction companies. Related project delays can translate into increased costs in labour and materials and can also drive up financing costs from lenders to finish the project, heavily impacting developers’ bottom lines. The reality is that water damage during the construction stage of a building is one of the largest risks to completing a project on time and on budget.
“Water damage is a very common occurrence these days with high-rise construction, in both residential and commercial occupancies. Each loss is unique but the common denominator is water and gravity — a destructive combination,” says Jonathan Graham, Underwriting Director of Construction & Contracting with Northbridge Insurance, a leading Canadian commercial insurance provider.
The impact on losses and project delays is why both the insurance and construction industries have begun seeking out risk mitigation strategies, such as water leak and flood protection technology. This technology – widely being retrofitted for years into existing buildings and structures — also has applications during the construction phase of a building.
Recently, Northbridge worked with two developers and their brokers to roll out water IoT (Internet of Things) technology during the construction phase of two high-rise projects. The goal was to test the technology’s effectiveness in mitigating and reducing water damage. To better support the construction industry, Northbridge has since partnered with a leading water IoT solutions provider to offer discounts to customers on construction water leak and flood protection.
Here’s how the technology works: Temperature, humidity, moisture, and water detection sensors are strategically placed around a building and communicate via a Long Range Wide Area Network (LoRaWAN) — since construction projects are unlikely to have internet availability.
The sensors are connected in real-time to a dashboard and mobile app, providing 24/7 monitoring. If water is detected where it shouldn’t be, or water supply exceeds a predetermined parameter, alerts are sent to key contacts and water valves are shut off automatically or remotely through the app.
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