Analytics and data services provider CoreLogic last week announced the launch of a new tool designed to help underwriters more accurately assess the risk of sewer backup and basement flooding.
Sewer Backp Risk Score is a data-based assessment that issues a “risk score” for a property, reflecting the risk potential of sewer backup and basement flood. The tool considers factors such as watershed hydrology, rainfall intensity and frequency, soil hydro properties, tree coverage, land depression, aging sewer systems at the structures and in the communities, combined sewer areas, land slope, elevation variances between properties and potential flood sources and sewer system patterns.
Sewer Backup Risk issues score on a one through 100 scale, as well as categorical risk rating from “very low” to “extreme.”
“CoreLogic is on the forefront of helping insurers and property owners identify risk associated with flood-related events,” said Lindene Patton, global head of hazard product development for CoreLogic Spatial Solutions. “The marketplace was in need and requested a better means of assessing this specific type of risk, and Sewer Backup Risk Score fills that void.
“By accessing the power of CoreLogic natural hazard datasets, we are able to accurately identify potential risk for surface flooding, which is a primary contributor to sewer backup and basement flooding.”
The risk has become an important consideration for property underwriters. According to the Association of California Water Agencies, claims originating from sewer backup number more than 500,000 annually and rise 3% every year.
As claims grow in number, underwriters have been concerned over their ability to correctly price risk on endorsements for sewer backup or excess flood.
“As average sewer backup claims continue to rise, insurance companies have to be able to better evaluate potential risk for this type of endorsement,” said Patton. “Their underwriting decisions must be good riks for their books of business.”
Sewer Backp Risk Score is compatible with other CoreLogic products.
