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Q: Residential property & casualty insurance - discounts for leak prevention system ( Answered 5 out of 5 stars,   1 Comment )
Subject: Residential property & casualty insurance - discounts for leak prevention system
Category: Family and Home > Home
Asked by: floguard-ga
List Price: $100.00
Posted: 30 Dec 2004 08:40 PST
Expires: 29 Jan 2005 08:40 PST
Question ID: 449244
In the mainland US, what are the names of at least 5 residential P&C
insurance companies offer a discount for installing a plumbing
leak prevention system?
Subject: Re: Residential property & casualty insurance - discounts for leak prevention sy
Answered By: adiloren-ga on 31 Dec 2004 00:47 PST
Rated:5 out of 5 stars
Hello, thank you for the question. 

I contacted many insurance companies and the following reported that
they may offer premium credits for installing leak prevention systems,
depending on the condition of the pipes, age of the property, etc.

It seems that these systems are taken into account when the premiums
are calculated, even if there is no specific discount isolated. I
wasn't provided with any hard figures or percentages, just that it
would be factored into the process.

I hope this helps.


(they wouldn't give me a specific yes or no answer, but they said that
they do offer discounts for certain devices according to specific
situations. Discounts also vary from region to region).

An article from Allstate on water damage and discounts:

American Fidelity
(an agent said that they consider the systems as plumbing renovations,
which reduces premiums in older buildings.)

Atlantic Mutual
(provides breaks for properties that may have a high mold risk but
have a leak detection/prevention system)


"Consider installing water detection devices throughout your home.
These systems can detect even small amounts of water. They can be
wired into a centrally monitored alarm system that will notify you in
the event of a leak. Such systems may entitle you to receive a
discount on a Chubb homeowners policy."

PDF Document on Water loss devices Water_Loss_Devices02010286.pdf



Patrons Oxford Mutual

Policyholders of America 
(they are not an insurance company, but they are working to develop
partneships with companies that would allow for discounts for such


State Farm 
(note: they didn't respond as to whether they offer a discount,
however they do recommend leak prevention systems on their website. As
of a 2003 article, they did not offer discounts)
"The following is a list of a few companies that manufacturer water
leak detection systems with automatic shut off valves. Other products
with similar safety features may be available on the market."
<<Betsy Woodson, an analyst in underwriting programs for State Farm,
the largest insurer in Texas, says nobody knows whether the systems
are effective. Because so few homes are equipped with the gadgets,
insurers don't know whether they reduce claims and thus justify a
discount, she said.

"Once we're comfortable that we have that type of data, we may revisit
the idea" of offering discounts, Woodson said.

The discounts could be especially attractive in Texas because of high
prevailing rates.>>

Travelers Insurance (home insurance)

(agent said that deductions could be made)


Additional Links:

P&C Index

Homeowners Insurance Discount

Systems mentioned by Chubb

*	DynaQuip Controls offers WaterCop, a water damage prevention system
that uses moisture sensors and an automatic shut-off valve to detect
leaks and automatically stop their water supply.
*	FloLogic, Inc. offers the FloLogic SystemŽ, a water flow monitor
that recognizes continuous water flow that exceeds normal use and
responds by shutting off the water supply.
*	Kitco Corporation offers Flood Buster, a wireless, portable device
that detects water and sounds its alarm.
*	Smarthome, Inc. offers a variety of water prevention devices,
including systems designed to work with home appliances that use
*	Glentronics, Inc. offers the Basement Watchdog, a series of
emergency battery backup systems for basement sump pumps.
*	FloodStoppers of Austin, Inc. offers the FloodStopper system, a
complete in-home leak detection and automatic water shut-off system
that helps prevent serious damage from leaking pipes or appliances.

Rising Water Damage Erodes Home Values
Sat Apr 24, 2001 4:46 PM ET Add Business - Reuters

Texas Ruling on leak detection systems
"Sec. 6. OPTIONAL PREMIUM DISCOUNT. (a) An insurer that issues a
residential property insurance policy in this state may provide a
discount in the premiums that would otherwise be charged for the
policy if the policyholder has installed a water leak detection system
that meets the building and performance standards for mold reduction
in Section 430.002, Property Code."

Risk Analysis Tool

Valuation Info

P&C Agencies

General insurance info


Google Search Terms:

P&C insurance, discounts
property insurance discounts
property insurance, discounts, plumbing
"insurance discounts" plumbing
"premium credits" water damage, leak
floguard-ga rated this answer:5 out of 5 stars
Very thorough and referenced answer.  Just what I was look for.

Subject: Re: Residential property & casualty insurance - discounts for leak prevention system
From: neilzero-ga on 30 Dec 2004 15:38 PST
P&C stands for property and casualty. Please give us some web sites of
companies that sell leak prevention systems.   Neil

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