The Cost of Water Damage and Preventative Solutions

The Cost of Water Damage

and Preventative Solutions 

As the number of condominium units in Canada continues to increase, it is important that both the owners and corporations of these buildings are aware of the risks associated with water damage.

Statistics Canada noted that the number of condominium units has increased significantly over the past three decades. In 2016, it was estimated that around 30 percent of the residents in major cities such as Toronto and Vancouver were living in condominiums. These types of buildings are typically prone to experiencing various types of water damage, such as leaking faucets and appliances. As the buildings age, the risk of water damage also increases.

A study conducted by KPMG revealed that the increasing number of people living in condominiums has raised concerns about the rising number of property damage claims. Many of these individuals are residing in older buildings that are prone to experiencing issues with their mechanical and plumbing systems.

In Quebec, the Autorité des marchés financiers noted that water damage is the most common cause of property damage claims. According to data from insurer, the number of water damage claims has increased significantly over the past decade.

A study conducted by KPMG revealed that the share of insurance claims related to water damage in condominiums is between 60 percent and 90 percent. This means that leaks in these types of buildings can become more common. In single-family homes, the impact is usually limited to the home.

Sprawling water damage

Large and mid-sized condominiums often have over a hundred suites, all with their own HVAC systems, plumbing fixtures, and appliances. If a broken washer or a leak in one of these suites on the ninth floor can affect the other floors, it can cause significant structural damage.

Multiple news reports about water damage in Canadian condominiums have highlighted various issues that can affect multiple units. Some of these include faulty gaskets, frozen pipes, and water damage caused by structural issues.

In addition to maintaining their appliances and plumbing systems, suite owners should also take the necessary steps to ensure that their in-suite HVAC systems are in good condition. Some of the organizations that have identified issues with in-suite HVAC systems include the Canadian Institute of Actuaries, the Privileges Underwriters Reciprocal Exchange, and the Chubb Homeowners Study.

Over time, the corrosion and rust on the drain pans can create holes that can allow water to escape. Also, the deteriorating insulation in the fan coil cabinet can cause debris to accumulate and clog the drain lines and the condensate lines.

When the HVAC system is turned off during the winter, the coils and pipes can freeze and burst, which can lead to water damage. Also, as the risers expand and contract throughout the year, strain can accumulate on the valves, which can cause cracks and leaks.

Water damage claims climb

According to the Services Authority of British Columbia, the insurance premiums for strata corporations in the province went up by about 40 percent in 2020. A report by Deloitte also noted that the deductibles for water damage in the province had increased by 135 percent.

A 2021 Home Insurance Price Index released by lowestrates.ca revealed that the insurance rates for condominium owners increased. In provinces such as Alberta, Ontario, and British Columbia, the rates went up by 8 percent, 23 percent, and 34 percent, respectively.

To get the insurance rates back under control, suite owners and corporations should take the necessary steps to prevent water damage. However, while it can be catastrophic, inadequate in-suite care can still result in costly repairs.

According to a survey conducted by the insurance company, only 20 percent of homeowners have carried out a single risk mitigation activity related to water damage. Also, only 19 percent have regularly inspected their HVAC systems. The lack of awareness regarding the importance of preventative measures is one of the main reasons why many suite owners and corporations fail to take the necessary steps to prevent water damage.

One of the most important factors that a corporation and suite owner should consider when it comes to preventing water damage is educating their communities about the importance of preventative measures. Aside from maintaining their mechanical systems, a corporation should also regularly educate its members about the proper maintenance of their plumbing and appliances.

Many suite owners are unaware of the vital safety tips that can keep their HVAC systems running while they're away on extended absences. Corporations can also provide helpful hints and tips through interactive displays, newsletters, and welcome packets.

In addition to regular maintenance, a corporation should also regularly educate its members about the necessary repairs and retrofits that need to be carried out. For instance, in semi-annual maintenance, fans can be cleaned of debris and tested for leaks and clogs. Modern components such as automatic shut-off systems can help prevent water damage.

Through the original equipment manufacturer, a corporation can also estimate the life of its equipment. This can help minimize the risk of costly repairs.

Owners of aging buildings should be aware of the potential risks of inaction before it's too late. In addition to regular maintenance, a corporation should also regularly educate its members about the necessary repairs and retrofits that need to be carried out. Aside from maintaining their mechanical systems, a corporation should also regularly educate its communities about the importance of preventative measures.

Written by Ryan Orser