Company launches sewer backup risk analysis tool

An analytics and data services provider has announced the launch of a new tool designed to help underwriters more accurately assess the risk of sewer backup and basement flooding.

Risk Management News

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An analytics and data services provider has announced the launch of a new tool designed to help underwriters more accurately assess the risk of sewer backup and basement flooding.

CoreLogic’s 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 importance of sewer backup coverage is critical, says one Ontario broker.

“For an extra $15 a year, it is certainly worth it. Now more than ever,” says Kip Van Kempen, president of Best Buy Insurance in Ajax, Ont. “Thirty years ago we never used to offer sewer back up. People’s basements were unfinished, and the floor drain took care of any flooding – all you had was a homeowner with a bigger than usual water bill.

“But today, you have finished rec rooms and thousands of dollars invested in electronics in the basement,” he says. “And that isn’t even mentioning the refrigerators with ice makers and water options. You have city water pressure going through those small hoses – that can make for a big mess when those fail.”

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 risks for their books of business.”

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