b'Water IoT: A game-changing water monitoringCathy Ciccolini, Partner at Masters Insurance Limited, which also partnered with Northbridge technology for high-rise construction projects on a water IoT pilot project. She believes water IoT technology will be useful to the construction industry in the futureit may even become a In the insurance world, its often said that water is the new fire and the requirement, like sprinklers or smoke detectors. Future projects will be marketed with no water newnormalforannualcatastrophiclossesrelatedtowaterdamageis damage claims from past projects, allowing new insurers to offer potentially more capacity, around $2 billion, according to theInsurance Bureau of Canada (IBC). as well as better rates and deductibles.But the problem is even more acute in high-rise constructionand to differentiate between normal and excess water flow forI strongly recommend developers adopt this projects, where it can be hard to pinpoint a leak, or when a leaka duration of time. And while it may not prevent a leak fromtype of protection. Most of them have had a occurs at night, or on the weekend when the site is unoccupied.happening, it can catch a leak in real time to mitigate damage.water damage claimsome small, some larger, That means a small leak can turn into millions of dollars insays Ciccolini. I impress upon them that water damage during a project. On a project in partnership with Northbridge, Jonesdamage claims will affect the next project I have DesLauriers Insurance Management Inc. (JDIMI), a professionalto place for them.Severe water damage causes several challenges forservices firm specializing in corporate risk managementWhile it is still very much in its infancy in this construction companies. Related project delays can translateand employee benefits solutions, worked with Tributepart of the world, genuine interest from both into increased costs in labour and materials and can also driveCommunities, a builder of high-rise and low-rise communities. developers and insurers is prevalent and gaining up financing costs from lenders to finish the project, heavilyTogether, they tested a water IoT solution in a high-risemomentum, Kucharuk says. Not that long ago, impacting developers bottom lines. The reality is that waterconstruction project which was of particular interest to Tribute,developers heard about IoT technology as a damage during the construction stage of a building is one of theas theyd had to make four water-related claims on a state-of- new thing that may come to fruition one day. largest risks to completing a project on time and on budget. the-art commercial space about a decade ago. As a result ofThis clearly isnt the case anymoreforward Water damage is a very common occurrence these daysthe damage, they had to rebuild the space three times overthinking developers are familiar with how to use with high-rise construction, in both residential and commercialthe life of that project. the technology to their benefit.occupancies. Each loss is unique but the common denominatorThose four leak claims cost us close to a year and a half,Indeed, he says its a natural, pragmatic is water and gravitya destructive combination, sayssays Gus Stavropoulos, Chief Financial Officer with Tributeprogression to help reduce both frequency Jonathan Graham, Underwriting Director of Construction &Communities. We learned a lot in that building and weand severity of claims, which is key for insurers Contracting with Northbridge Insurance, a leading Canadianlearned there has got to be a better way to do this. and vital to developersas it will greatly aid in commercial insurance provider. keeping their construction timelines on track and We look at the frequency and severity of water losses, andWhen they rolled out water IoT sensors during the recentreducing water damage costs.in the last five years both have been trending in the wrongconstruction project, they didnt have any significant waterdirection, he says. claims and credit the risk mitigation benefits of the technologyTheres a lot of opportunity to reduce the for that outcome.likelihood but also the size of a water leak, so The impact on losses and project delays is why both thewe can prevent or mitigate the risk by using insurance and construction industries have begun seekingWe had one case where we got ahead of it, he says. this technology. Its about identifying where the out risk mitigation strategies, such as water leak and floodThere was a report of a pressure leak, and our staff quickly issues are and also being able to act remotely, protection technology. This technologywidely beinggot the alert and dealt with it and it was done. It was a loosesays Christopher Mastro, Director of Risk retrofitted for years into existing buildings and structuresvalve, but that could have turned into a quarter of a millionServices with Northbridge Insurance.also has applications during the construction phase of dollars in damageand a couple turns of a wrench saved us a building. a lot of problems. Developers also have the ability to pass on the He believes water IoT technology will revolutionize losscost of water IoT technology to the building Recently, Northbridge worked with two developers and theirexposure on high-rise construction projectsand that theowner once the project has wrapped up. And brokers to roll out water IoT (Internet of Things) technologyindustry as a whole needs to be at the forefront. building owners can benefit from the technology during the construction phase of two high-rise projects. Thepost-construction, as it can help mitigate goal was to test the technologys effectiveness in mitigatingI wish this technology was available 10 years ago when wepotential ongoing risks and insurance costs.and reducing water damage. To better support the constructionhad a $3.5 million water damage loss, says Michael Kucharuk,Its probably more cost-effective to put it in industry, Northbridge has since partnered with a leading waterPartner and Account Executive with JDIMI. Overall, Im glad toduring construction because you can protect IoT solutions provider to offer discounts to customers onhear Northbridge is proactively addressing water damage inthe site and ensure owners occupy the building construction water leak and flood protection. construction projects through technology and connecting withon time. If your building is 98 per cent done and Heres how the technology works: Temperature, humidity,GCs and brokers on the issue. a hose comes off a toilet on the 12th floor, you moisture, and water detection sensors are strategically placedWhile there are hundreds of insurance providers could set your whole project back by months, around a building and communicate via a Long Range Wideregistered in Canada, only a handful specialize in course says Mastro. But for building owners, it offers Area Network (LoRaWAN)since construction projects areof construction projects.ongoing risk management.unlikely to have internet availability. There are definitely fewer insurers now than prior to 2020.While the technology cant necessarilyThe sensors are connected in real-time to a dashboard andOf those still available, they may not be comfortable coveringprevent the frequency of water-relatedmobile app, providing 24/7 monitoring. If water is detected100 per cent of the risk and so multiple insurers are neededevents, it can have a dramatic impact onwhere it shouldnt be, or water supply exceeds a predeterminedto cover a portion of the risk to reduce their exposure inseverityproviding timely insights to reduce parameter, alerts are sent to key contacts and water valvesthe event of a loss. This means that more negotiationsthe severity of losswhich is a win-win-winare shut off automatically or remotely through the app. Theare required due to the nature of having multiple insurersfor construction companies, insurers and technology is sophisticated enough to sense moisture levelsparticipateespecially on large multi-tower projects, saysultimately building owners.Northbridge Insurance, Northbridge and the Northbridge Insurance Logo are trademarks of Northbridge Financial Corporation, licensed by Northbridge General Insurance Corporation (insurer of Northbridge Insurance policies.)This resource is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.'