Prepare for the Unexpected, and the Unexpected Won’t Catch You Unprepared: Protecting your home and property

It’s no fun to think about the potential disasters that can befall your family, but there is something to be said for the peace of mind you can achieve by knowing that you are well protected. At Coldstream Risk Management, we want to make sure you are aware of dangers so that you can insulate yourself from them effectively. Preparation always beats lack of preparedness.

There are some important risks people should be aware of ― but don’t let these hazards instill fear in you: instead, take action to protect your home, your property, and your family. As you review your property and casualty insurance policies for the coming year, there are some easy precautionary steps you can take in addition to managing your insurance coverage. The end of the year is a great time to execute measures that can help prevent disaster, as well as to review your insurance coverage and make any necessary adjustments.

Avoiding Electrical Hazards

Fire and lightning is the single most common cause of homeowner’s insurance claims.[1] Wildfires have made the news in recent years and are certainly top of mind for residents in the Pacific Northwest, but there are other types of fires to be aware of. Of the top 20 Pure Insurance claims in 2023, six were due to electrical fires.[2] Of the top five claims in our history, one was attributable to electrical fire. One simple preventive measure you can take is to purchase a sensor that will alert you to electrical issues. We recommend Ting, a tiny device that plugs into an outlet and monitors your home’s electrical system for any abnormalities. You’ll be notified on your phone of any hazards that need to be addressed.

The proliferation of electric vehicles also comes with the hazard of battery fires. There has been a significant increase in lithium-ion battery fires from charging e-bikes and e-scooters. Newer models are becoming safer, but it’s important to use caution when charging your electric vehicles. Only use parts, cords, and adapters that come from the manufacturer, and use the manufacturer’s instructions for charging and storage. It’s generally wise not to leave electric bikes charging overnight (and don’t charge them in a bedroom!). If you notice any strange odor, leaking, noises, or overheating, stop using the device immediately and move it away from anything that can catch fire.

Preventing Water Damage

Water damage comes in second only to fire when it comes to homeowner’s claims, and accounts for more than twice the cost of claims from theft.[3] Of Coldstream Risk Management’s top five claims, two were a result of water damage: one from flood, and one from internal plumbing failure. We have seen the recent tragedies from hurricane damage in the Southeastern U.S.: make sure if you live in an area at risk of natural disasters that you have adequate flood coverage.

When it comes to plumbing failures, keeping your water supply lines and connectors up to date can go a long way toward prevention. Check around washing machines and toilets for signs of visible corrosion, cracks, or leaks. Connectors can be either metal or plastic; metal generally has a longer useful life, but some high-quality plastic options can last for as many as ten years. Make sure to replace materials before the end of their life expectancy.

It isn’t only plumbing failures that can cost homeowners — simple leaks can cause enormous damage. In 2023, Pure Insurance reported that almost 3,000 preventable leaks cost insurers more than $120 million.[4] Claims are most frequent from toilet leaks, HVAC system leaks, and water heater leaks. One of the best defenses against plumbing leaks is a water shut-off device, particularly for seasonal homes. These devices monitor water flow and shut off water automatically if abnormalities are detected. A water shut-off device may qualify you for a credit on your homeowner’s premium, as well as being a smart precaution. Find out more about The Flo Shutoff device from Moen here.

Frozen and burst pipes are one of the most significant causes of water damage. When cold weather arrives, it’s wise to turn off outside water sources, store outdoor hoses, and insulate any exposed pipes. When you travel, keep your home’s heat flowing at a lower setting to prevent indoor pipes from freezing. If you are going to be away for an extended period of time in the winter, drain your plumbing system before you leave.

Earthquake Damage Mitigation

Earthquake damage is a common exclusion in homeowner’s and renter’s policies, so consider purchasing separate earthquake coverage. There are also some actions you can take to prepare your home and property just in case. Take the time to anchor large furniture to the wall, and make sure fixtures like ceiling fans and chandeliers are securely anchored in the ceiling. If you have suspended ceilings, consider additional bracing for reinforcement. Don’t place heavy objects high up off the ground, and consider placing latches on cabinets that hold fragile items. You can learn more about earthquake damage protection from FEMA in this guide.

Updating Your Insurance Coverage

Lastly, make sure your property and casualty coverage is up to date. Building, replacement, and repair costs have increased — and your insurance policies should reflect that to ensure that you are fully covered. If you have purchased valuables or collectibles, make sure they are included. And finally, ensure that you are aligning your deductibles with your risk tolerance and comfort levels. Please feel free to contact Coldstream Risk Management at any time to help you explore your options.

Additional Resources

Listen to an interesting podcast with real-life stories of saving homes from calamity with simple solutions like a water shut-off and Ting electrical monitor at https://www.pureinsurance.com/advice-and-insights/risk-thinkers/leading-with-prevention

The Eco Plumbing team is a great local plumber in Washington, serving Seattle and surrounding areas. Call 833.208.6062 for their call center; they are specifically instructed to prioritize Coldstream clients.

In Arizona, highly recommended plumbers include Trinity Plumbing (480.287.0330) or  AZ’s Best Pipe Doctor Plumbing (623.869.6436).

If you are unable to find a local plumber, Beagle Services can help you schedule services online.

[1] “Homeowners insurance claim statistics” by Pat Howard & Kara McGinley; PolicyGenius; March 7, 2024;  https://www.policygenius.com/homeowners-insurance/homeowners-insurance-statistics/

[2] Pure Insurance Annual Report 2023: https://www.pureinsurance.com/annual-report

[3] Ibid.

[4] Ibid.