WaterRisk™

Non-weather water damage is responsible for approximately $8.24B per year in homeowner’s insurances losses.¹ Unlike losses due to Mother Nature, non-weather water damage has a diversity of causes (Figure 1)—and the data on these causes, while predictive, are difficult to collect.

How does non-weather water damage affect your underwriting efforts?

WaterRisk is the first and only predictor of non-weather water claims.

Built from a broad, diverse and proprietary national database, WaterRisk looks at the disparate causes of non-weather water damage and their complex interactions to predict the probability of a claim and losses due to non-weather water—for any address nationwide.

WaterRisk generates a score based on risk—for any U.S. address. This Lakewood, OH-area address (Figure 2) has a WaterRisk score of 165, which is 65% above the national average score of 100. Listed with the score are factors that contribute to the non-weather water damage risks at the address, to help convey some of the primary reasons why the risk is higher.²

WaterRisk is highly predictive of the frequency and losses from non-weather water damage claims, and has been validated by Location, Inc.’s exclusive national insurance industry database (Figure 3): as the WaterRisk score increases, so too does the frequency of claims. As a result, WaterRisk fills an unquantified gap that accounts for about 20% of all homeowner’s losses.

What WaterRisk can do for you

1. Location, Inc.’s analysis of insurance carrier loss data, corroborated by third-party industry data from the Insurance Journal and the Insurance Information Institute. Losses = $41.2B net of Reinsurance.

2. WaterRisk is not a sub-score based index; the factors that contribute to non-weather water damage risks are listed simply to help convey why the risk is low or high for an  address but do not quantitatively sum to the WaterRisk score.

Non-weather water damage is responsible for approximately $3.57B per year in commercial property losses.¹ Unlike losses due to Mother Nature, non-weather water damage has a diversity of causes (Figure 1)—and the data on these causes, while predictive, are difficult to collect.

How does non-weather water damage affect your underwriting efforts?

WaterRisk is the first and only predictor of non-weather water claims.

Built from a broad, diverse and proprietary national database, WaterRisk looks at the disparate causes of non-weather water damage and their complex interactions to predict the probability of a claim and losses due to non-weather water—for any address nationwide.

WaterRisk generates a score based on risk—for any U.S. address. This Tallahassee, FL-area address (Figure 2) has a WaterRisk score of 154, which is 54% above the national average score of 100. Listed with the score are factors that contribute to the non-weather water damage risks at the address, to help convey some of the primary reasons why the risk is higher.²

WaterRisk is highly predictive of the frequency and losses from non-weather water damage claims, and has been validated by Location, Inc.’s exclusive national insurance industry database (Figure 3): as the WaterRisk score increases, so too does the frequency of claims. As a result, WaterRisk fills an unquantified gap that accounts for 20% of all commercial property losses.

What WaterRisk can do for you

1. “Facts + Statistics: Commercial Lines” from the Insurance Information Institute; “Best’s Aggregates and Averages, Property/Casualty, United States and Canada” (2017) from A.M. Best; a study performed by The Hartford, a financial services company, analyzed claims data from over one million policies purchased by small business owners. The data covered a five-year period (2010 through 2014) and applied to liability, auto and property claims.

2. WaterRisk™ is not a sub-score based index; the factors that contribute to non-weather water damage risks are listed simply to help convey why the risk is low or high for an address but do not quantitatively sum to the WaterRisk score.