Mitigating and Minimizing Potential Losses due to Water Damage. Presented By: Ben Yoho and Janna Bennett September 30, 2015

Transcription

1 1 Mitigating and Minimizing Potential Losses due to Water Damage Presented By: Ben Yoho and Janna Bennett September 30, 2015

2 Disclaimer 2 The purpose of this presentation is to provide information, rather than advice or opinion. It is accurate to the best of the speaker's knowledge as of the date of the presentation. Accordingly, this presentation should not be viewed as a substitute for the guidance and recommendations of a retained professional. In addition, CNA does not endorse any coverages, systems, processes or protocols addressed herein unless they are produced or created by CNA. Any references to non-cna Web sites are provided solely for convenience, and CNA disclaims any responsibility with respect to such Web sites. To the extent this presentation contains any examples, please note that they are for illustrative purposes only and any similarity to actual individuals, entities, places or situations is unintentional and purely coincidental. In addition, any examples are not intended to establish any standards of care, to serve as legal advice appropriate for any particular factual situations, or to provide an acknowledgement that any given factual situation is covered under any CNA insurance policy. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All CNA products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright 2014 CNA. All rights reserved.

3 Objectives Include: 3 At the end of this session, you will: Recognize basic sprinkler shutdown procedures Be familiar with the potential economic impact of water damage Know the primary sources and contributing factors associated with large water damage losses from sustained cold weather events Understand specific steps you can take to minimize risk of water damage claims

4 4 Basic Sprinkler Shutdown Procedures

5 Post Indicator Valve (PIV) 5

6 Wall Post Indicator Valve (WPIV) 6

7 Outside Screw & Yoke (OS&Y Valve) 7

8 OS&Y Valve - Shut 8

9 Butterfly Valve 9

10 Dry/Wet Systems Butterfly Valves 10

11 Indicating Control Valve 11

12 Indicating Control Valve 12

13 Sprinkler Control Valve Hot Box 13

14 Sprinkler Control Valve Hot Box 14

15 Sprinkler Control Valve Hot Box 15

16 Dry-pipe Sprinkler System Auxiliary Water Drain 16

17 Why Should We Be Concerned? 17

18 What is the Polar Vortex? 18 Persistent, large scale cyclones that hover near the poles year-round Strengthen in winter due to dependence on temperature differential between the equator and the poles Winter 2013/14 and 2014/15: Arctic Oscillation caused a southward shift, creating: Prolonged periods of lower than average temperatures Hundreds of record low temperatures as far south as Florida Winter 2015 temperatures 20 to 50 degrees below average temperatures for eastern US 1 Insurance Information Institute

19 Polar Vortex 19 Image Source:

20 Economic Impact 20 Overall Economy: ~ $5 billion impact 1 Insured Losses: ~ $1.5 billion in insured losses 2 CNA Insured Loss Data 3 : More than 1,300 claims More than $58M total losses 95% of claims: water damage costs 1 Planalytics.com 2 Insurance Information Institute 3 CNA claim data assessment of property accounts from October 2013-January 2014

21 Assessments 21 Primary water sources by claim count: 61% Fire sprinkler system 11% Domestic water supply 8% Process water (HVAC, mechanical) 17% not identified 3% Multiple sources Type of Occupancies: 46% Habitational (hospitals, retirement communities, apartments, condominiums) 34% Offices (medical office buildings, high rise offices) Remainder from various occupancies

22 Key Findings 22 Key contributing factors to large water damage claims Not knowing how to shut off the water Failure to maintain heat Improper installation/maintenance of sprinkler systems CNA claim data assessment of property accounts with large water damage losses (>$100,000 each) from October 2013-January 2014

23 Economic Impact 23 Severe Winter Weather 3 rd largest cause of insured catastrophic loss after hurricane and tornado Average losses due to snow, ice, and related causes averaged $1.2 billion annually over past 20 years 2013 $1.9 billion in losses 2014 $2.3 billion in losses with $1.7 billion of these losses occurring during Polar Vortex January 5-8, 2014 In 2014, severe winter weather accounted for 15% of all insured home, auto, and business catastrophic losses in US during 2014

24 Issue 1: Failure to Promptly Shut Off Water Supply Lines After Leak Detected 24 Suggested Actions: Know the location and operation of all water control valves Documented emergency plans Incorporated into emergency drills Location properly labeled Evening/night shift supervisors specifically trained

25 Issue 2: Failure to provide or maintain heat 25 Suggested actions: Service HVAC equipment before severe weather Use qualified contractor or trained/qualified maintenance staff Maintain an adequate amount of fuel Exhaust vents clear? Identify areas of the building that are unusually difficult to heat or lose heat rapidly Consider supplemental heating devices Install thermometers to monitor temperatures Walk around the building looking for damaged windows, caulking, vents, and louvers Ensure unheated space has adequate/undisturbed insulation

26 Issue 3: Improper installation or maintenance of sprinkler systems 26 Schedule sprinkler maintenance before severe weather Use qualified contractor or trained/qualified maintenance staff Ensure low point (auxiliary) drains on dry pipe systems are drained on a regular basis Is piping properly pitched to allow complete drainage? Is heating provided to maintain sprinkler control room temperature above 40 degrees F?

27 Polar Prep Kit 27

28 Polar Prep Kit 28

29 Polar Prep Kit 29

30 Polar Prep Kit 30

31 Polar Prep Kit 31

32 Resources 32 Polar Prep: The Sprinkler System Freeze-up Prevention Guide Polar Prep: The Cold Weather Preparation Checklist Recommendations for Preventing Frozen Pipes in Aging Services Facilities Polar Prep: The Snow and Ice Removal Preparation Guide Polar Prep: The Snow Loading and Roof Collapse Preparation Guide

33 Questions and Comments 33