Presentation title option 1 - BC Non

British Columbia Non Profit Housing
Association
Water Damage
Risk Management
Number of water escape claims
2007 - 2011
Cost of Water Damage Claims
2007 - 2011
Sources of water damage
The most common areas are:
• Interior Building Water Intrusion Sources
• Exterior Building Water Intrusion Sources
Interior Building Water Intrusion Sources
• Plumbing
Pipes and drains, plumbing fixtures – (faucets, toilets, sinks, etc.), equipment(water heaters, dishwashers, etc.), sump pumps and other miscellaneous
equipment.
• Mechanical Systems – ( Heaters, air handlers, evaporators, condensate
drains, chillers, pumps, tanks, boilers, piping, refrigerant lines.
Sources of water damage
• Fire Sprinklers – Piping, sprinkler heads, control boxes, stand pipes.
• Wet areas - Showers/baths, steam rooms, laundry, lavatory/water
closet, areas of higher maintained relative humidity.
• Exterior Building Water Intrusion
Sources
Rain/ground water, irrigation systems, hard and softscape drainage,
exterior plumbing (city water supply), adjacent properties – the path of
exterior water
Sources,
Roofs and roof drains, decks and deck drains, windows and doors,
cladding (wood siding/trim), stucco, brick, concrete foundations, basement
walls (waterproofing), penetrations and junctions of above sources.
Water Damage Prevention– Apartment Buildings
Overview
Over the last decade, water damage to apartment buildings has increased dramatically.
The main sources of water damage are:
1. More severe weather events caused by changing weather conditions. This increases
the chance of a building exterior being breached, which can cause heavy damage to
the interior.
2. Human error – such as a sink tap left running, or a door or window left open in the
winter Human Error – continues to be the cause of most water damage.
.
Large water damage loss
Water Damage Prevention– Apartment Buildings
3. Aging and faulty plumbing
4. Water leaks, as undetected silent leaks can be equally damaging as a
catastrophic leak.
Hot Water Boilers
Materials and Design
or
Sorry – we made a mistake
Monumental mistakes
Leaky Condo syndrome
Crane Toilets
Wolverine defective thin wall copper pipe
Polybutylene Pipes
Look for recalls – not the most effective but generally the only remedy
Polybutelene
Polybutylene
the miracle pipe
~ 1978 – 1995 - light gray pipe, no longer used -recall now over
Technology and Chemistry
Recirculating systems – keeps recirculating hot water. More efficient but the life span
of the pipes is about half as long as non-circulating systems.
Hard Water – high mineral content, hard on pipes,
Copper Pitting - Sometimes caused by residue film left over from manufacturing
preventing natural film from forming and protecting the copper
Copper Pitting
Facility Management
Water Damage Prevention Checklist
To help protect your building from water damage caused by interior sources, it’s
important to help minimize the risk by considering the following:
•
Do you have your roof inspected annually by a qualified contractor?
•
Do you have a written self-inspection format for building exterior, interior
and grounds and are regular visual inspections completed.
•
Are main water valves properly labeled?
•
Do your unit occupants know where and how to isolate (turn off) the water
supply in their units?
•
Have you told unit occupants to turn off water to their unit when absent for
an extended period of time and to drain their faucets to clear the pipes?
•
Are individual unit hot water tanks placed in a drain pan with provisions for
the safety valve line to drain without causing damage?
Facility Management
Water Damage Prevention Checklist
•
Do you replace individual unit hot water tanks every 10 years?
•
Are large central hot water tanks provided with a working floor drain with
sufficient dyking or flow to the drain?
•
Are the heating boilers – central hot water/ steam – located in a boiler room
with proper drainage?
•
Are radiators and piping protected from freezing?
•
Are your unit occupants advised to maintain a minimum temperature of 55F
(13C) to keep pipes from freezing?
•
Are appliances installed by professionals and connected to the water
supply with braided hoses?
Facility Management
Water Damage Prevention Checklist
•
Are all appliances, water heaters, hoses and other equipment kept up-to
-date and in good working order?
•
Are there at least two sump pumps in each sump (a main and a back-up)
and are the pumps tested regularly?
•
Do you have any water leak detection systems in place to help identify
potential trouble spots?
•
Do you tell unit occupants to report any signs of evident water damage?
Aviva Risk Management Website
http://www.avivacanada.com/content/risk-management
Loss Control Guides
Prime Realty – Loss Control Guide
Your Guide To…
Water Damage – Condos and Apartments
Building Maintenance Program
Summary
Water damage can result from natural occurrences, technological hazards or
mechanical failures. However the vast majority of water-related problems are the
result of accident or neglect.
As an apartment facility manager, do you have a comprehensive risk
management process that includes a scheduled maintenance program for your
building, its grounds, and the building mechanical services?
In addition, have you enacted a planning guide detailing the correct
procedures to be taken to minimize loss when a water damage incident occurs?
British Columbia Non Profit Housing Association
Annual Conference
November 18th.-20th., 2013
De-mystifying the Claims Process

When a loss occurs, contact Marsh immediately, providing them with the particulars of the loss
and ensure you provide them with complete contact information for the individual that will be
addressing the claim on your behalf.

The claim will be forwarded directly to our Vancouver centre for immediate assignment to one of
our telephone or field adjusters. In the event of a remote location or due to heavy claims
volumes, the office may assign the loss to one of our three national independent adjusting
partners, Crawford’s, ClaimsPro, or Cunningham Lindsey.

You may expect a call from the adjuster within 4 hours of the reporting of the loss, in the event it
is a water loss, we strive for two hour contact.

The adjuster may attend personally or utilize the services of our premiere contractors’ program.
These are contractors specifically hand picked by Aviva to service our policyholders. They are
considered best in class in the restoration process from the emergency clean up, to the
remediation and finalizing of all repairs quickly and efficiently. On top of this, our repair
guarantee will stand behind the repairs of these contractors for life!
page 20
Claims Process Con’t.......
 First order of business is to determine the type of damage that has occurred in order for the
adjuster to determine the experts required, i.e., contractors, engineers, business accountants,
etc. Play it safe, if you are in need of immediate help from a contractor, call one of our preferred
partners, then let us know when you report the loss who it is you have called, the company will
take care of the rest!
 Utilizing one of the companies’ preferred contractors will shorten the wait time even more
between estimating a loss and progressing forward with repairs.
 After hours claims occur.....don’t worry because we have that covered with a 24/7 after hours
claims service program. Calling into that number will provide you instant contact with after
hours claims personnel to do whatever is necessary to ensure emergencies are taken care of
and reported to us the next business day.
 If a reported loss is determined to be not covered under the terms and conditions of the policy,
Aviva will still allow up to $500 towards any emergency costs sustained.
Emergency Reporting Line- 1-866-MY-AVIVA (1-866-692-8482)
Claims Value Proposition 26/11/2013 page 21
Coverage Confirmed!
►This is truly an all inclusive policy which covers property of every description which we refer
to as an all risk type of policy
►So, all the typical coverage's you would expect to see here, i.e., fire, lightening, freezing,
sewer back up, earthquake, burst water pipes, DBO’s, vehicle impact............
►But also for lesser known limited coverage perils such as your building damaged by theft,
increased costs due to by-laws enforcement, demolition and increased costs of
construction, debris removal, fire department service charges, lawns, plants, shrubs or
trees, additional living expenses, crime covers, business income loss...........
►Of course, we can’t have an all risk policy without there being stated exclusions, i.e., leaky
water pipes due to age, deterioration, maintenance issues relating to such things as pipes
and roofs, deliberate acts, bed bugs, disposal of tenant’s contents..........
Claims Value Proposition 26/11/2013 page 22
Loss Examples……….
1) Water damage Jan 6, 2012 claim# 3400111274
On Friday January 6, 2012 a contractor ________________ was working on a make up air unit. The
sprinkler supply line broke resulting in water damages to the complex. The contractor notified their liability
insurers. We were able to recover the insured's deductible and ACV of damages.
It is important to preserve the damaged line, this was done and we were able to recover.
2) Fire Loss April 3, 2012 claim# 8309164467
On April 3, 2012 the tenant in unit #4, ___________ was at home with her two younger children and 15
year old son. Her son discovered the fire at approximately at 9:15am. The tenant attempted to
unsuccessfully extinguish the fire and called 911. The fire department were notified and attended
Tenant did not have personal insurance coverage. No real assets to pursue.
3) Fire loss June 15, 2013 claim# 3400112536 (open) repairs being finalized, recovery pending.
On Saturday June 15, 2013 in the early afternoon a fire was discovered on the balcony of unit 308
occupied by __________. The tenant notified her insurance carrier. We will explore the possibility of
recovering from the responsible party for deductible and loss amounts.
Prompt notification of loss allowed for independent fire investigation to be completed strengthening our
recovery potential.
Claims Value Proposition 26/11/2013 page 23
Endorsements Attached……..
ENDORSEMENT NO. 5 – PART 1
ADDITIONAL LIVING EXPENSES
Extension of Coverage, each location
Subject to a deductible amount, we will pay reasonable additional living expenses
(including moving expenses, incurred by tenants to maintain their normal standard of
living), subject to a limit of $10,000 per housing unit and $50,000 any one occurrence,
that the Insured becomes legally obligated to pay, if as a result of an insured peril the
Named Insured's premises become unfit for occupancy, or tenant(s) have to move out
while work is being done on the Named Insured's premises to repair damage resulting
from the aforementioned insured peril.
Claims Value Proposition 26/11/2013 page 24
Loss Control Efforts (After the Loss)
► It’s important for us to move on any loss quickly, getting the right experts into a loss situation
as soon after it occurs is essential.
►On water or fire losses, using our preferred general contractors will ensure the right people are
brought on site, i.e., electricians, plumbing experts, water restoration firms for emergency
extraction, carpenters, flooring experts, siding and roofing sub trades……
► With respect to DBO’s, the right professional restoration firm is paramount as there are very few
experts in our regions that do, “trauma”, losses. Our preferred vendors are equipped to do
these claims.
► Most claims will have some element of water damage, whether it is a fire loss, freezing, or water
escape. In this event, we must be diligent in quickly getting access to the premises to control
the drying out process for fear of early onset of mold and rot setting into the building
structure.
► A running faucet puts out from 2 to 3 gallons of water per minute. Leaving the sink running for
10 minutes probably puts 25 gallons of water into the unit, equivalent to 5, 5 gallon pails or
over half of a 45 gallon drum! In this event, we doubt your janitor is taking out 25 gallons of
water with a shop vac, so this water must go somewhere!
Claims Value Proposition 26/11/2013 page 25
Claims Value Proposition 26/11/2013 page 26
Claims Value Proposition 26/11/2013 page 27
Claims Value Proposition 26/11/2013 page 28
To Reduce the Impact
► Clean, dry, and pristine buildings
► Regular maintenance is an important defense.
► In the event of a loss, fix it fast, fix it properly.
► It is hard to prove whether occupants are getting sick in buildings but if
you have mold present, or a flood wasn’t handled properly it may
influence the jury
► What is not removed through extraction must be evaporated
► Extraction is at least 1200 times faster
► Evaporation costs more than extraction
► Extraction cannot remove all of the water
Claims Value Proposition 26/11/2013 page 29
Fresh Water
Floods
Broken Water Lines
3
3
The importance of
thorough inspections
►Digital cameras
►Moisture metering
►Digital thermal imaging
Claims Value Proposition 26/11/2013 page 33
3
Air Movement & Evaporation
3
Classes of Water, Degree of Saturation
Class 1
► Least amount of water, absorption, evaporation.
Class 2
► Large amount of water, absorption, evaporation.
Class 3
► Greatest amount of water, absorption, evaporation.
Class 4
► Specialty drying situations
Claims Value Proposition 26/11/2013 page 37
Fresh Water Floods
3
Mould (Mold)
Lifestyle Consequences
4
A panel set up to guide New York State’s mold
policy recognized
► “Quantitative clearance guidance for water damage and mold
remediation” was a more proactive approach toward reducing effects
associated with exposure to mold than to create policies to determine
how significantly people are affected by it.
►According to the same study;
“Molds , along with other organisms such as bacteria, mites and insects
that proliferate in damp buildings produce volatile compounds, spores
and other minute particles that can cause irritant and allergic responses
that range from annoying to serious depending on the amount of
exposure and the immune system of the individual “ the panel said
Claims Value Proposition 26/11/2013 page 42
At Risk Individuals
► Pregnant women
► People with HIV/AIDS
► Immunodeficiency
► Cancer and organ transplant patients
►Infants and young children
►Young children and their susceptibility to environmental
contaminants
Claims Value Proposition 26/11/2013 page 43
New and Unique
Building Materials
► Stucco
► OSB
► Particle board
► Gypsum board
► Laminate &
hardwood flooring
Grey and Black Water
4
Sewer Backups
Oh, I found the problem…
4
4
Effects of Coming in Contact With Sewage/River
Water
► Gastrointestinal illness
► Skin disorders
► Diarrhea
► Tetanus
► VOC’s
Claims Value Proposition 26/11/2013 page 48
First Priorities
►Protect the occupants
► Protect the workers
► Protect the building & the environment
Claims Value Proposition 26/11/2013 page 49
5
5
Protect the
surrounding
environment
5
Preferred Contractors
BELFOR CANADA- COURTENAY
BELFOR CANADA- DUNCAN
BELFOR CANADA- NANAIMO
BELFOR CANADA- PRINCE GEORGE
BELFOR CANADA- SURREY
BELFOR CANADA- VANCOUVER
BELFOR CANADA- VICTORIA
DISASTER KLEENUP CANADA- PENTICTON
DISASTER KLEENUP CANADA- VERNON
DISASTER KLEENUP CANADA- COQUITLAM
DISASTER KLEENUP CANADA–KELOWNA
OKANAGAN RESTORATION - KELOWNA
OKANAGAN RESTORATION - PENTICTON
OKANAGAN RESTORATION – VERNON
ON SIDE RESTORATION - ABBOTSFORD
ON SIDE RESTORATION - DUNCAN
ON SIDE RESTORATION - NANAIMO
ONSIDE RESTORATION - SQUAMISH
ON SIDE RESTORATION - SURREY
ON SIDE RESTORATION - VANCOUVER
ON SIDE RESTORATION - VICTORIA
ROCKY CROSS CONSTRUCTION - VICTORIA
 SERVICEMASTER OF KAMLOOPS
 THE WHOLE SHOW RESTORATIONS - PARKSVILLE
N & H CONTRACTING – KAMLOOPS
Claims Value Proposition 26/11/2013 page 53
 RAINBOW OF THE KOOTENAYS