Managing the Rising Cost of Escape of Water Claim

Escape of water claims are increasing, and the insurance industry is looking to manage the rising costs through collaboration and technology. Damage management companies play a key role in this effort.

In a recent roundtable hosted by Post Magazine and Acumen, experts from Polygon, leaders in water damage and leak detection, discussed the impact of lifestyle changes, like more water-based appliances, and poor plumbing installations as key factors behind rising claims.

Technology and Claims Reporting

Tech is central to managing water claims, from detection to customer service. Polygon uses smart water meters that learn usage patterns, alert users to leaks, and can shut off the supply remotely. Prompt reporting via smartphones can also reduce damage.

Leak Prevention

Efficiency in Repairs

Reducing "dead time" in the claims process is crucial. Polygon focuses on seamless supply chain processes and a proactive claims handling approach, aiming to minimise disruption and keep policyholders in their homes.

Prevention Over Cure

Smart tech, like under-sink leak detectors linked to apps, can help catch issues early. Just as we have smoke and intruder alarms, water alarms could become standard.

Improving the Policyholder Experience

Policyholders need support and clear communication during claims. Polygon emphasises end-to-end management and uses tech to reduce complaints and spot potential fraud.

Fighting Fraud with Tech

Video reporting helps detect exaggerated claims. In the future, AI could enhance fraud detection, but the industry needs more data first.

Cash Settlements

While cash settlements have their place, too many could hurt the restoration industry’s long-term viability.