Hard to Place, Easy to Protect: Giving Vulnerable Homeowners a Fighting Chance

By Jerry Fairborn, National Sales Manager, Commercial, Moen Canada —

Across Canada, more and more homeowners are finding that insurance is no longer a given. Properties once considered standard are being reclassified as risk exposures due to climate volatility, aging infrastructure, and escalating repair costs. In many regions, securing or renewing home coverage has become increasingly difficult, especially for those in flood-prone zones or older neighbourhoods.

For insurance brokers, this presents an urgent challenge: how to help clients stay protected when traditional underwriting appetite is shrinking. Amid these pressures, one solution stands out: leak prevention through intelligent water management.

By integrating smart water technology, brokers and insurers can redefine what “insurable” means, offering homeowners tangible proof of proactive risk control

When Risk Becomes Routine

Water damage remains the leading cause of property loss in Canada, responsible for more claims than fire or theft combined, according to the Insurance Bureau of Canada (IBC).  IBC’s October 2025 Catastrophe Indices and Quantification Inc. data shows insured losses exceeded $9 billion in 2024, much of it due to flooding, rain, and sewer backup. But most losses stem not from weather, but from everyday incidents: burst pipes, leaking appliances, or undetected drips behind walls.

These “invisible catastrophes” carry heavy costs. The average interior water damage claim now exceeds $17,000, with losses rising sharply in older homes where materials and finishes absorb more damage, according to the IBC.

Despite this, many homeowners remain underprepared. Roughly one in three Canadians mistakenly believe their standard home policy covers all forms of flood or water damage, according to research from the IBC and Leger. Nearly half lack optional sewer backup or overland flood coverage, leaving millions exposed when the unexpected happens.

A Path Forward for Hard-to-Place Homes

Insurers are not retreating from these markets arbitrarily, they are responding to mounting financial strain. As loss frequency climbs and repair inflation accelerates, pricing risk sustainably becomes complex. Aging plumbing systems and outdated municipal infrastructure further compound the challenge.

However, this doesn’t mean these homes are uninsurable. With validated prevention measures in place, underwriters can assess risk based on evidence rather than exposure alone. Smart water systems provide that evidence, providing continuous monitoring, automatic shutoff, and real-time data that transforms uncertainty into confidence.

Proof Through Data

The value of prevention isn’t theoretical, it’s measurable. A LexisNexis® Risk Solutions study of 2,306 U.S. homes equipped with the Moen Flo Smart Water Shutoff revealed a 96% reduction in paid water leak claims one-year post installation compared to the two years prior. Claim severity also decreased by 72%, while comparable homes without smart shutoff technology saw a 10% increase in claim frequency over the same period.

These results underscore a fundamental truth: water damage is not inevitable. But with the right technology, it can be mitigated, or prevented entirely. For Canadian homeowners in difficult markets, that distinction can mean the difference between maintaining coverage and losing it.

Elevating Confidence for Insurers and Brokers

For insurers, smart water prevention devices offer unprecedented visibility into property risk. They convert reactive loss management into proactive oversight, creating a data-supported foundation for modern underwriting.

For brokers, these technologies represent a practical, credible solution for clients who face non-renewals or coverage restrictions. By demonstrating active prevention, brokers can reopen conversations with carriers, reframing the file from “high-risk” to “risk-managed.”

This approach parallels the evolution seen in auto insurance with telematics: once data entered the conversation, risk became personalized, and responsible behaviour was rewarded. The same transformation is now possible for homeowners who embrace smart water solutions.

Making Prevention Accessible

Cost is often cited as a barrier to adoption, but today’s prevention technologies are both affordable and adaptable. A complete smart water network, including automatic shutoff, sensors, and app connectivity, typically costs less than a single deductible payment. Installation is straightforward, and the benefits are ongoing.

Some Canadian insurers and municipalities already offer rebates or annual premium credits for verified smart water installations, typically between $75 and $150. Beyond financial incentives, these programs demonstrate a broader industry shift: prevention is no longer optional; it’s strategic.

A Smarter Way to Protect What Matters

Behind every statistic is a homeowner striving to safeguard their home, and, increasingly, their insurability. Losing coverage can trigger financial hardship and emotional stress. Prevention restores control, enabling homeowners to monitor their systems, respond instantly to alerts, and avoid the devastation of water loss.

This empowerment fosters trust between homeowners, brokers and insurers. When all parties share visibility into risk, protection becomes a partnership.

A striking finding from a recent Moen Insurance Whitepaper was the reduction in both the frequency and severity of claims following the installation of a Flo Smart Water leak detection device. Joint customers experienced an 81% reduction in claim frequency and an 85% reduction in claim severity after installing the device. These results may indicate that joint customers had a history of prior water losses, and the device are effective in mitigating future risk.

The Road Ahead

For the Canadian insurance industry, the path forward lies in prevention and partnership. By adopting smart water technologies, insurers can stabilize loss ratios, enhance sustainability commitments, and extend protection to more homeowners, especially those once deemed too risky to insure.

Hard-to-place no longer means hard-to-protect. With innovation, data, and collaboration, even the most challenging risks can become opportunities for resilience.

The Moen Perspective: Leading the Smart Water Revolution

Moen has spent decades reimagining how water is experienced, conserved, and controlled. Our Smart Water Network, anchored by the Flo Smart Water Monitor and Shutoff, represents a comprehensive approach to whole-home water intelligence, offering visibility, efficiency and protection that extend well beyond leak detection.

About the Author

Jerry Fairborn is the National Sales Manager, Commercial at Moen Canada. He collaborates with insurers, brokers, and builders to integrate smart water technologies into forward-looking risk prevention strategies across Canada.

For insurers and brokers interested in exploring how connected water monitoring can strengthen both portfolios and client trust, Moen Canada’s Smart Water team welcomes the opportunity to collaborate.

About Moen

As the #1 faucet brand in North America, Moen offers a diverse selection of thoughtfully designed kitchen and bath faucets, showerheads, accessories, bath safety products, kitchen sinks and garbage disposals for residential applications – delivering meaningful innovation, useful features, on-trend styling and lasting value. In addition, Moen^® Commercial offers superior-performing products that can deliver lower lifetime costs for today’s facilities.

Moen is part of Fortune Brands Home & Security, Inc. (NYSE: FBHS), which creates products and services that help fulfill the dreams of homeowners and help people feel more secure. Moen anchors the Global Plumbing Group (GPG), which also includes several brands under The House of Rohl^™ including Perrin & Rowe^®, ROHL^®, Riobel^®, Shaws^™ and Victoria + Albert^™. Its other segments include Master Lock^® and Sentry^® Safe security products, MasterBrand Cabinets^® and Therma-Tru^® entry door systems. Fortune Brands is part of the S&P 500 Index. For more information, please visit www.fbhs.com.

SOURCE: Moen Canada