ACE Private Risk Services, part of the ACE Group, has a new program that will help its insurance clients with high-value homes save money for installing systems to prevent water damage.
The discount plan is part of its ACE Platinum Portfolio insurance program for affluent and high net worth clients. This program is offered through an alliance with Sentinel Hydrosolutions LLC, maker of the Leak Defense System, which automatically detects leaks and shuts off the water in a home.
ACE Private Risk Services’ clients are eligible for a discount of 35 to 40 percent off the price of the Leak Defense System. In addition, ACE will reduce the premium on a client’s home by five to seven percent for clients who install the Leak Defense System.
ACE cites a recent incident it says underscored the value of a water leak defense system. The owners of a secondary home worth more than $2 million were away when a leak occurred in the mechanical room. The water leak defense system sensed the leak, shut off the water to prevent serious damage, and alerted the owner’s security system, which notified the home’s caretaker. The caretaker responded, located the problem, and easily cleaned up the small amount of water that had leaked.
Gary Raphael, senior vice president of Claims and Risk Consulting, ACE Private Risk Services, said that water damage from plumbing leaks accounts for one of the most common and costly causes of loss and this system can pay for itself by preventing or minimizing the damage from plumbing and appliance leaks.
Clients of ACE Private Risk Services typically own high value homes, choose high deductibles on their policy, and often travel for business or pleasure. If even a small plumbing leak occurs while they are away, damage to their home can be substantial. In 2008, the average claim paid for a frozen pipe was more than $36,000, and for leaky appliances more than $13,000, according to ACE. While insurance covered most of the cost, deductible payments by clients often exceeded $2,500.
“Loss prevention is in everyone’s best interest,” said Scott Pallais, chairman of Sentinel Hydrosolutions. He said the discounts being offered could cover the cost of purchasing and installing the Leak Defense System if just one typical loss is prevented.
The annual premium savings and potentially lower water bills then add to the return on the investment, he said.
Source: ACE Group
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