iclr: water - the new fire
DESCRIPTION
Water damage has surpassed fire damage as the main driver of personal property insurance claims in Canada. These slides show the trends, explains why this has happened, then concludes with advice on mitigation, with a particular focus on sump pump related losss and backwater valvesTRANSCRIPT
Water: The new fire Glenn McGillivray Managing Director Institute for Catastrophic Loss Reduction November 2014
Considerations
What is the nature of the water problem?
Water is the new fire. Why?
What can be done about it?
Canadian disaster damage
Number of events
0
40
80
120
1960s 1970s 1980s 1990s
Weather related disasters Geophysical disasters
0%
10%
20%
30%
1970s 1980s 1990s 2000s
Annual insurance disaster claims, proportion of total homeowner claims
Four-fold increase since 1970s!
Source: Insurance Information Division, Personal Lines Statistical Exhibits, IIIA
Water damage
Water is the new fire
Personal property losses (2009-2013)
Source: Sandink et al. (forthcoming)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2009 2010 2011 2012 2013
To
tal L
os
se
s (
$0
00
,00
0s
)
Year
Water
Fire
Wind/hail
Unspecified losses
Burglary/theft
Water damage claims
Source: Aviva Canada, 2014:
2003 average: $8,944
2013 average: $20,537
Types of urban flooding
Overland
Function of lot grading, overland flow routes
Currently not insurable
Infiltration
Groundwater, cracks in basement floor/walls
Rarely insured
Sewer backup
Function of I/I, homeowner behaviour
Insured through endorsement
Overland flooding
Infiltration flooding
Sewer backup
Types of urban flooding
Overland
Function of lot grading, overland flow routes
Currently not insurable
Infiltration
Groundwater, cracks in basement floor/walls
Rarely insured
Sewer backup
Function of I/I, homeowner behaviour
Insured through endorsement
Mississauga, Brampton, Toronto, 2013:
>$850 million
Thunder Bay, Montréal, Ottawa,
Hamilton, Toronto, Steinbach, 2012:
>$350 million
Hamilton, 2009: $100-150 million
Southern Ontario, 2005: >$500 million
Peterborough, 2004: $87 million
Edmonton, 2004: $166 million
MANY OTHERS!
Recent large loss events
IBC, 2012: $1.7 billion average insured water
damages per year in Canada
Why are losses rising?
Aging infrastructure
The climate is changing
More people and property at risk
Aging infrastructure
The climate is changing
Changing lifestyles
However…
Why are losses rising?
Aging infrastructure
The climate is changing
Changing lifestyles
Just add water…
Why basements flood
https://www.youtube.com/watch?v=yX
ynH_DFv04
Foundation water
Keeping water at bay
Keeping water at bay
Three major ways that water can enter a home’s
foundation drains (aka weeping tiles, weepers,
footing or perimeter drains)
Via downspouts (aka roof leaders) that are
connected to the weeping tiles
An easy fix – disconnection (where possible)
Via water seepage down through the backfill zone
Via the water table
Many people live in areas where the water table
is high
For many, the answer involves installation of a
sump pit and pump
Weeping tiles and sump pumps
https://www.youtube.com/watch?v=ZB
6Yb9WptTk
How do sumps work?
Water enters weeping tiles, flows into the home’s
floor drains and, eventually, into the sump (i.e.
the pit)
Once the water rises to a certain height (raising
the float on the pump or triggering the
diaphragm) the pump will turn on, bringing the
water up through the drain pipe and out of the
house to the lot surface
A check valve should be installed so water
cannot go back down into the sump pit
Water should be ejected away from the
foundation/backfill zone and away from
neighbouring properties
How do sumps most often fail?
Float failure
Obstruction/not moving freely
Hole in float
Pump failure
Broken seal
Blown motor
Debris in pump
Power failure
Shared circuit
How should sumps be tested?
Methods vary depending on type of pump and
manufacturer
Follow manufacturer’s instructions
Some recommend testing every 2 to 3 months,
others recommend yearly, often before the rainy
season
Testing usually involves a simple 3 step process
Ensure power is running to pump
Pour enough water into the sump pit to trigger the
diaphragm or ball float (bucket or hose)
Check the pump discharge to ensure that water is
flowing from the pump to the discharge line
outside your home.
What if the sump isn’t working?
Check for debris blocking the pump intake (eg
gravel)
Listen for strange noises coming from the motor
Check for oil in the sump pit. Discovery of oil
could indicate a failed pump seal
If the activation switch for the pump works on a
ball float, check if the float is moving freely and is
not restricted
Ensure the float isn’t full of water (indicating that
a leak exists)
Pump replacement tips
Minimum 1/3 horsepower recommended
Size pump properly according to needs (amount
of water to be pumped and distance it needs to
travel to, aka ‘head’)
Head should be minimum 10 feet
Pump should be able to pass large stones
(minimum 10mm)
Discharge lines should be minimum 1¼ inch pipe
and should have a check valve to prevent water
from flowing back down into the sump pit
Check to see if pump meets standards such as
the CAN/CSA 22.2 No 108 ‘Liquid pumps’
Other considerations Screwed down top
Keeps debris out of pit
Keeps children/pets out of pit
Helps prevent overflow
Helps keep radon out of home
More attractive
Quieter
Back-up pump
Back-up power
Battery
Potable water
Sump-pump alarm
Audible
Smart phone
Other considerations Back-up power
Other considerations Sump-pump alarm
Keeping sewage at bay
Backwater valves
Aka, sewage backflow valve, sewage backflow
prevention device, or sewage backflow preventer
Not to be confused with a backflow preventer or
backflow prevention device
Not the same as a check valve or gate valve
Must distinguish between mainline (normally
open) and inline (normally closed)
Goes on the sanitary sewer lateral (and
sometimes on the storm lateral) in the floor at the
foot of the basement wall closest to where the
lateral exits the house to connect to the
municipal system
Backwater valves
Allows wastewater to easily exit the house
However if the municipal sewer system
surcharges – or backs up – the gate prevents
waste water from re-entering the home and
coming up through the floor drain, washing
machine and/or basement plumbing fixtures such
as sinks, toilets or showers
Very effective, but not the be-all-and-end-all
Backwater valves
Video on how backwater valves work
https://www.youtube.com/watch?v=vJ
N9YKvnIYk
Backwater valves: Important considerations
Need to know with certainty how a home’s drain
system is set up or you risk causing a basement
flood rather than preventing one
Combined sewer system?
Floor drains to sanitary?
Floor drains to storm?
If combined or floor drains to sanitary, then floor
drains would have to be disconnected and
directed to a sump or else the home could be
subject to ‘self flooding’
This is why it is dangerous for insurers to require
insureds to install a backwater valve without first
understanding how a home’s system is set up
Other considerations Backwater valve alarm
Other considerations Lot grading
https://www.youtube.com/watch?v=Vf
H9Z8wGGy4
Other considerations Lot grading - swales
Direct water to appropriate infrastructure
Permeable surface, infiltration
Other considerations Disconnecting downspouts
Downspout disconnection, extension, splash pads
Other considerations Extensions, lot grading & backfill
City of Regina, 2004
Other considerations Disconnecting downspouts
https://www.youtube.com/watch?v=X3
kDv41PCX0
Other considerations Window wells and covers
Other considerations Eavestrough maintenance
Water can pour over
poorly maintained
eavestrough
Enter backfill zone,
foundation drainage
Contributes to sewer
backup, infiltration
flood risk
Other considerations Cracks in foundation walls, floors
• Infiltration flood issues
• Sealing cracks
• Foundation drainage
• Lot grading
Other considerations Reverse slope driveways
Other considerations Exterior stairwells and walkouts
Other considerations Miscellaneous alarms
Other considerations Clear storm sewer grates
Summary of behavioural measures
Report events to your municipality
As your municipality for advice
Talk to your broker about your insurance coverage
Clarity on “flood” and sewer backup coverage
Don’t pour FOGs down your drains
Clear sewer grates of leaves, debris, snow
Maintain eavestroughs
Avoid finished basements
Follow all municipal requirements for installations
Many do not report events to
municipality
• More likely to report only to
insurer
• Those with uninsur. losses
may report to no one
Confusion about insurance
coverage for water damage
• 21* - 70% think they’re insured
for flood
• Many do not know if the have
SB coverage (45% in
Sherwood Forest)
Limited awareness and uptake of
municipal subsidy programs
• Frequently under 10%
• Insurance incentives
Limited awareness of risk
reduction measures in the home
• 1/3 of Sherwood Forest
residents could not identify if
they had a BWV
Residents blame municipality and are unlikely to undertake risk
reduction actions on their own
ICLR findings – brief summary
*J.D. Power Study - 2014
ICLR projects and resources
20 measures
1: Talk to your municipal government about basement flooding
2: Inform your municipal government about basement flooding that you’ve experienced
3: Hire a licensed plumber to conduct a detailed plumbing investigation on your home
4: Check your insurance policy, or talk to your insurance broker or insurance provider about
basement flood coverage
5: Avoid pouring fats, oils and grease down household drains
6: Keep storm sewer grates clear
7: Seal cracks in foundation walls and basement floor
8: Considerations for overland flood entry-points
9: Reduce home water use during heavy rainfall events
10: Maintain eavestroughs and downspouts
11: Avoid storing items directly on the basement floor
12: Downspout disconnection, extension and splash pads
13: Lot grading, backfilling and swales
14: Weeping tiles, sump-pits and sump-pumps
15: Mainline, normally open backwater valve
16: Maintain sewer laterals
17: Severance of storm sewer lateral
18: Considerations for reverse sloped driveways
19: Window wells and window well covers
20: Avoid remodelling or finishing basements
Encouraging homeowner action
Education
Public meetings associated
with Environ. Assessments
Meetings focused on
affected neighbourhoods
Meetings focused on
plumbing measures
Mass media, brochures,
handbooks, websites, etc.
Insurance providers
Subsidy programs
Mainline Backwater Valves
Subsidy programs
Toronto
Brantford
Edmonton
London
Ottawa
Halton Region
St. Catharines
Welland
Niagara Falls
Hamilton
Saskatoon
Vaughan
Durham (loan)
Peel/Mississauga
Sudbury
Winnipeg
Brandon
Max grant generally ~$3,000
Range for backwater valve: $500
in Niagara Falls to $1,250 in
Toronto
80% up to $2,800 for BW valve
and sump-pump in Toronto
60% up to $3,000 for BWV/Sump
in Winnipeg
$2,000 for sump, BW valve, lateral
repair, DS disconnection –
additional $1,500 for repair of
lateral if affected by City trees in
Hamilton
Mainline Backwater Valves
Showcase Homes
London - tornado (2003)
Halifax - hurricane (2004)
Vancouver - earthquake (2005)
Ottawa - winter storm (2006)
Edmonton - tornado (2007)
Montreal - ice storm (2008)
Toronto - winter storm/blackout (2009)
North York - basement flooding (Aug. 19, 2009)
Jasper - wildfire (2010)
Hamilton - basement flooding (2011)
Moncton – basement flooding (2012)
Quebec – earthquake and winter storm (2013)
Burlington – basement flooding (2014)
Showcase Homes program
• Work with municipalities to find candidate homes
• Generate media attention for lot-level risk reduction
• Education for key stakeholders
Toronto
2009
Hamilton
2011 Moncton
2012
Burlington
2014
Hamilton, 2011
Moncton, 2012
Window well & lot grading
Overland flood insurance
Homeowner coverage not technically
available vast majority of Canadian
homeowners
Primary reasons:
Mutuality
Adverse selection
Lack of randomness
Size of the insured community
Inadequate, inconsistent assessment of
hazard (e.g., return periods, floodway
definitions, SW hazards, etc.)
AB flood
Many reports of policy holder confusion
due to inconsistent coverage Image: Global News, 2013
