The Importance of Risk Management at PURE
Jason Metzger
Head of Risk Management
May 22, 2023
Inflation and the uptick in severe but preventable claims are driving up the cost of insurance for members.
Not to mention the personal disruption associated with a large claim. This presents a call-to-action for all of us to do more to protect the homes we insure.
We are placing a greater emphasis on risk management and working harder to find solutions that can aid in reducing the occurrence of preventable claims as well as mitigate the damage for those that are not as avoidable (like those that result from hurricanes, convective storms and other severe weather events). We are testing new technologies, thinking up different service offerings and reviewing claims data to uncover new insights that can make us all smarter about risk.
We know risk management can sometimes be time consuming, so we are working to make it easier on you, either by introducing simpler-to-implement solutions or by finding creative ways for PURE to take on a bigger share of the effort.
What you can do to reduce your risk
Insurance is inherently a group effort, but this is especially true with PURE’s membership model. The more responsible members who truly care for their homes, the better the entire membership performs—which can mean a lower cost of insurance.
When it comes to combating two of the most devastating sources of loss among the membership, start by following this advice.
Preventable Plumbing Leaks. In 2022, preventable plumbing leaks cost the membership over $148 million, yet the measures to reduce them are often simple and inexpensive. While the following are recommendations for members across much of the country, members in some states are required to implement these solutions in order to maintain coverage.
Replace your supply lines every 10 years, at minimum. For toilets, steel-braided hoses with metal connectors are superior to rubber and plastic alternatives. For washing machines, steel-braided hoses should also be used.
If your washing machine is located on the second floor, in addition to having steel-braided hoses, make sure to place a point-of- leak sensor below the machine to alert you of leaks. If you want to avoid accidental water damage altogether, add a drain to the laundry room.
Add a device that monitors the flow of water to your home and alerts you of irregularities via an app. The best protection comes from a device that can also shut the water off, but a flow monitor will still provide critical insights that can help lead to timely intervention.
Electrical Fires. Fires are infrequent but almost always severe. Modern building materials, open floorplans, additional electrical devices and more combustible materials mean homes burn faster than ever before. Three ways to reduce this risk:
Work with your electrician to ensure that all your outlets are properly grounded and safely operational. Have your electrical panel examined regularly.
Be mindful of overloading power strips and outlets. It’s good practice to check chargers, cords and power strips regularly for wear and to ensure they are not overheating.
Install a Ting device, which monitors your entire electrical system and alerts you of any irregularities that could lead to a fire. This includes both the power coming to your home and any plugged-in device or appliance.
New Pilot Programs Coming Soon
We will continue to pilot programs involving solutions intended to reduce risk against severe causes of loss. Notable pilot programs related to plumbing leaks and electrical fires will begin this summer. These programs will start on a limited basis due to state-by-state regulatory requirements and other restrictions. Members will be notified by email as they become eligible.
- LeakBot Pilot. For several years, we’ve been promoting the benefits of water shut-off devices. While we are pleased that many members have installed this critical loss prevention technology, many more still remain at risk. The good news is, there is another easy solution. LeakBot simply clips onto the pipe where water enters your home and monitors flow, alerting you if a leak is suspected.
- Ting Pilot. Every year, the membership is faced with devastating fire losses and the severity continues to increase. Ting monitors the electrical activity in your home, alerting you of abnormalities and arcs that can lead to electrical fires.
