In January 2024, Oregon and Washington experienced winter storms that caused an estimated $1.7 billion in property damage according to the National Centers for Environmental Information.
During the storms, approximately 150 associations insured by ABI experienced water damage from freezing pipes that resulted in claims, many of which paid out hundreds of thousands of dollars. These claims resulted in displaced unit owners and drastic increases in insurance premiums for the affected associations. As winter approaches this year, associations and unit owners can avoid catastrophic damage by planning and implementing preventative winterizing strategies.
- Always leave the heat on. We have seen multiple associations experience water damage from frozen pipes because the heat was turned off in a unit or clubhouse. It is crucial to leave the heat on in the association’s common areas and individual units. Many property insurance carriers have policy provisions that state claims caused by insufficient heat or no heat will be denied altogether. Typically, carriers set a minimum requirement for a thermostat to stay at 55 degrees.
- Ensure fire sprinkler systems are inspected. A licensed and insured contractor should inspect the system at least once a year. Even dry-pipe systems can accumulate condensation which can cause a freeze. Your association’s sprinkler system may need better insulation or may even need to be reconfigured to allow for better distance from exterior walls.
- Have your water heater and HVAC system inspected annually. Over time water systems wear out. Water heaters can deteriorate and leak. A faulty water heater could contribute to a water loss. HVAC systems also need to be inspected annually. A properly functioning heating system will help keep the heat on and the pipes warm. Regular inspections and maintenance can prevent problems before they begin.
- Pay attention to pipes that run along exterior walls. If your unit has exterior walls with water lines inside them, leave faucets on to allow for a slight, continuous trickle of water. Open cabinet doors under sinks so that warmer air in the space can circulate better.
- Develop an emergency plan for entry into a unit if an occupant will be away. If a freeze occurs and water leaks into a vacant unit, the extent of the damage could increase quickly if the leak is not stopped. For unit owners who travel in the winter months, have a plan in place for a trusted friend or relative to enter your home in case of emergency. Consider having this person stay in the unit while you are away. If this can’t be arranged, ask a friend or relative to check inside the unit every few days, and more often during inclement weather. In the event of an emergency, associations need to have a plan in place for board or committee members to enter unoccupied units.
With a little pre-planning and preparation, you can be ready for winter weather and help reduce the likelihood of a claim.
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