Escape of Water (EOW)

Innovating to protect insurance for residential EOW and distressed risk

Innovating to protect
insurance for residential
EOW and distressed risk

Magenta EOW

Escape of Water (EOW) is the largest peril in property insurance and the scale and severity of the exposure to insurers is on an unprecedented scale. So much so that many will not insure the peril if a client has had an EOW. We are approaching this proactively and working hand in glove with a mitigation and preventative solution to tackle the issue. Instead of waiting to see if your client’s are one of the unlucky EOW lottery, you can offer a new innovative solution to help them avoid the misery. We are the approved BIBA EOW and Distressed Risk Scheme providers and our solution helps brokers access the insurance their client’s otherwise can’t find.

BIBA has appointed magenta insurance to provide its members with a scheme to help customers protect themselves against Escape of Water (EOW) in the home. EOW costs the industry £2.5m per day in claims, not to mention the distress and inconvenience to householders. Magenta’s scheme looks to help prevent this.

geo's, new Waterlock™ system was specifically designed to reduce the risk, hassle and expense of water damage claims for insurance companies and their customers.

Waterlock’s innovative technology will reduce escape of water losses by detecting standing water, excess humidity and freezing conditions. Unlike most systems on the market today, it not only detects risk but also offers the ability to instantly shut off the mains water supply. Combined with an intuitive and easy to use app, Waterlock’s early leak detection gives homeowners peace of mind and control of their water whether they’re at home or away.

  • The insurance industry pays out £2.5m every day to customers for escape of water claims.
  • The ‘Big Chill’ between October 2010 and February 2011, caused damage to as many as 3 million homes.
  • Typical cost of household damage caused by burst pipes averaged up to £7,000 during that cold spell, but in some cases costs were significantly more.
  • Less than half of the cost of escape of water claims in the UK by consumers is reimbursed by their insurers.
  • Only 18% of UK consumers close the mains pipe and the inflow to the washing machine before they go away.

Case study

EOW on more than one occassion

A network approached us with a distressed risk which had been impacted by escape of water damage on more than one occasion. Insurers had therefore excluded escape of water at renewal. We quoted on our brand new scheme including installation of a Waterlock device, designed to significantly reduce both the financial loss, emotional distress and insurance issues caused by escape of water.

Not only were we able to offer escape of water as a peril but we were also able to offer the peril on standard terms and at least £500 less than the brokers best rate. The broker was happy with the quote and placed the risk with us.

Case study

Suffered previous large EOW loss of £150,000

We were approached by a long standing broker with a commercial client who had suffered a rather large escape of water loss of over £140,000 on his home. The property had 10 bedrooms, and so the broker was finding it hard to help his client. However, we were able to place the risk on our Magenta Home Scheme, once the client adopted water mitigation technology to help control and manage the water in their home. Another benefit of this approach to the risk, was that the premium was reduced to less than the client’s historic premium. The broker had no hesitation in placing the risk with magenta insurance.

Case study

Two EOW claims, one refused

A broker who recently started working with us, had a client who had suffered from several claims including two EOW’s. One of the claims had been declined by their insurer.

To make matters more complicated, there were also some stables at the property, which were being let for livery business purposes. The current insurer only provided limited cover for FLEEA perils.

We managed to place the risk on our magenta home policy with an exclusion for the stables (cover placed elsewhere) with full cover including escape of water with an increased excess, for all claims and a slightly higher excess for escape of water. The client happily accepted and placed cover.

Key Features

  • Reduced premiums and excesses for successful installation of recommended EOW detection and mitigation system.
  • BIBA endorsed insurance solution for the No.1 peril affecting the UK residential property market.
  • Peace of mind with remote on/off mains water control capability from around the world.
  • Ability to control the mains water of multiple property portfolios.
  • Quick installation from via professional nation-wide plumbing network.
  • Minimised impact of future EoW events in the home.

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