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Reversing the Trend: Partnering to Reduce Preventable Claims

At PURE, insurance is about more than just a policy. It’s about making you smarter about risk and helping you reduce the chances of experiencing a claim. Preventing losses benefits the entire membership. Thanks to our model, the fewer losses the membership experiences, the better it performs. This means that the actions of each individual member have an impact. While we cannot escape from natural catastrophes, there are steps you can take to mitigate or even prevent certain losses.

The membership continues to experience a significant number of claims that could have been prevented—either with the help of loss prevention technology, regular home maintenance or taking greater care to protect their home and belongings.

Derek Zahn
Chief Claims Officer
Derek Zahn

We are grateful for all of the responsible actions that have been taken to minimize risk. This is a process of continuous improvement and there is still more progress to make towards our goal of reducing preventable losses—so, this creates a call to action for all of us. The reality is that many losses are entirely preventable but to make the greatest impact, we will focus on the often simple yet effective ways we can reduce some of the most common types of claims experienced among the membership: plumbing leaks, electrical fires and jewelry losses.

Plumbing leaks

In 2023, more than 2,800 preventable plumbing leaks cost the membership over $120 million. While frozen and burst pipes account for less than a quarter of these claims, they drive about half of the cost, emphasizing just how damaging these losses can be. Toilet leaks, leaks originating from HVAC systems and water heaters also top the list of most frequent claims.

The good news is that as the membership has grown over the past year, both the frequency and cost of these claims have slightly declined, signaling that we are moving in the right direction. However, as water damage continues to be the membership’s top cause of loss, we need to prioritize prevention.

To help reduce your risk:

  • For homes where you do not spend a lot of time, such as a seasonal home, or if you split your time among multiple homes, install an automatic water shutoff device. This is undoubtedly the best defense against water damage but is especially recommended for homes that are unoccupied for extended periods. It measures the flow of water and automatically shuts it off if abnormalities are detected, which can be a sign of a possible leak. These can only be installed in homes where the main water line is accessible and may qualify you for a credit on your Homeowners premium. After installation, ensure that settings are at an appropriate threshold for your home and that alerts on the corresponding app are monitored closely. A few vetted options include: Leak Defense®, FloLogic®, Phyn® or Water Hero®
  • For homes where you spend most of your time, leak detection sensors provide some protection. These sensors can range from small devices that are placed under water-connected fixtures and appliances to a device that is clipped onto your home’s pipes to monitor water flow. If an irregularity is detected, you are alerted via a notification in the corresponding app. These tend to be battery operated, so batteries need to be checked regularly and replaced as necessary. Since they do not automatically shut off your water, they are not recommended for seasonal or secondary homes. A few vetted options include: FloLogic, Phyn or Water Hero