From doorbell cameras to baby monitors, modern technology can deliver peace of mind, however too many people believe these are "set it and forget it" tools.
The same is true for leak-prevention systems, which homeowners too often install and then turn their attention elsewhere. "Trust but verify" isn't just worthy advice in the realm of international security; it's essential to prevent a home from accidentally turning into a lagoon. That's where insurance agents, brokers and carriers can help homeowners better understand and use mitigation technology.
Water damage claims cost insurers close to $13 billion annually, according to the National Association of Insurance Commissioners. And the most common source of water damage comes from indoors; burst or leaking pipes are of particular concern this time of year, as winter freeze season approaches. Unlike hurricanes or wildfires, this is mostly preventable. But simply buying a smart water shutoff system doesn't guarantee protection. They can only do their job if they are installed correctly, connected digitally and checked regularly. Too often, they're not. Too often, the homeowner (and insurer) has a false sense of security.
The illusion of protection
Homeowners, along with agents and carriers, appreciate safety gadgets like leak sensors and automatic water shutoff valves. They earn insurance premium credits and work to stop a water emergency before it becomes a disaster. Like home security systems, however, the protection they promise is merely an illusion if even one crucial element is awry.
Witness these real-life fails: A Texas homeowner installed a smart water shutoff valve in an outdoor box, only for the first big rainstorm of the season to fill the box with mud, rendering the device inactive. In a home in New York, a shutoff valve activated during a leak, but water kept running through a bypass loop left open during installation; digitally, the valve "closed," but in reality, nothing stopped the water from causing damage. In both cases, the homeowners earned discounts, insurers assumed risk had been reduced, yet a "smart" system proved otherwise.
Then there's our reliance on the internet. Industry research shows that 30-50% of insurer-credited devices are not online, whether they were unplugged, lost connection after a WiFi change or failed for another reason, often without anyone realizing it for days, weeks or even months. Most carriers don't have access to a verifiable central source indicating whether homeowner devices, across all manufacturer brands, are installed and continuously functioning. Adding to this perfect storm, homes are often empty due to holiday travel, leaving flooding to go undetected for an indeterminate period.
Proactive partners
In an ever-challenging market where carriers are reducing availability, raising premiums and tightening eligibility, verifiable prevention is the key to staying insurable. Because of this, the role of independent agents and brokers is steadily shifting away from policy writer to trusted risk advisor. Homeowners need expert guidance, and the most successful agents are leaning into education and prevention.
By helping clients truly understand emerging mitigation technologies such as automatic water shut-off valves, leak sensors and wildfire-hardening products, agents can help them make informed decisions and avoid preventable claims. These services include assessing specific household risks and needs; connecting homeowners with qualified installers and technology providers; helping clients secure the best insurer discounts or preventive maintenance incentives; as well as explaining how mitigation can influence underwriting and capacity decisions. This expanded suite of services doesn't just protect property. It builds trust, strengthens client retention and differentiates agents in an intensely competitive market.
Guiding clients toward best practices
Avoiding critical installation, setup and maintenance mistakes begins with insurance professionals recommending best practices. With dropping temperatures and peak travel weeks ahead, now is the time for agents to reach out with proactive guidance, such as:
- Use licensed installers experienced with smart valves, not regular plumbers who are likely unfamiliar with technical requirements
- Verify placement and plumbing integration: identifying interior protected locations, avoiding bypass loops and ensuring correct line connections
- Regularly check leak-detection systems, just like carbon monoxide and smoke detectors
- Confirm that devices are online and communicating, especially after Wi-Fi outages or router changes
- Keep retrievable documentation (e.g., make, model, install date, installer contact)
- Set annual service reminders, especially before the winter freeze season
When insurers, agents and installers collaborate, homes are verifiably protected. Carriers can reduce exposure by using system-level monitoring data from third-party validation platforms to know, in real time, whether their clients' mitigation devices are active and functioning. Agents can continue to pivot from periodic providers to ongoing advisors. Homeowners, while flooded with other home-related responsibilities, can avoid having their properties flooded because of ignorance or negligence.
Technology will never escape the need for the "human in the loop." And when it's a coalition of humans working together with the right tools, smart systems can reliably benefit everyone.
Paul Vacquier is CEO of Beagle Services, a plumbing technology company that helps homeowners prevent costly water damage through technology deployment, smart valve installation and monitoring. He works closely with insurers, agents and homeowners to tackle one of the industry's biggest loss drivers: non-weather water damage.
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