Moen Enters into Strategic Arrangement with Homeowners Insurance Provider to Help Control Rising Costs

Rhea-AI Summary

Moen has announced a strategic initiative with Farmers Insurance to promote Flo Smart Water Monitor and Shutoff devices, aiming to reduce the frequency and cost of water damage claims.

The devices can lower water damage claims by up to 96% and reduce household water waste by up to 90%. This collaboration seeks to minimize the financial burden on insurance companies and homeowners due to water leaks, which cost insurers over $15 billion annually.

These smart devices monitor water pressure and flow rates, detecting leaks and sending alerts through the Moen Smart Water App. This initiative also supports water conservation efforts, important in areas with water scarcity.

Positive

• Moen's partnership with Farmers Insurance could potentially reduce water damage claims by up to 96%.
• The Flo Smart Water Monitor and Shutoff devices can lower household water waste by up to 90%.
• Insurance companies spend over $15 billion annually on water damage claims, which this initiative aims to reduce.
• The device's real-time monitoring and alert system can prevent major water damage incidents.
• Homeowners can track water usage and set conservation goals, promoting sustainable water use.

Negative

• Initial costs for homeowners to purchase and install the Flo Smart Water Monitor and Shutoff devices.
• Potential technical issues or false alerts from the smart devices could cause unnecessary water shutoffs.
• Dependence on the Moen Smart Water App for alerts requires homeowners to have consistent internet connectivity.
• The initiative focuses mainly on water leaks, not addressing other types of potential home damages covered by insurance.

Insights

Financial Analyst

The strategic alliance between Moen and Farmers Insurance® is notable for its potential economic implications. By leveraging Flo Smart Water Monitor and Shutoff devices, this partnership can reduce the frequency and cost of water damage claims by up to 96. This reduction in claims could significantly lower the overall expenses for insurance providers, potentially resulting in better financial performance. Furthermore, Moen's devices can cut household water wastage by up to 90, which offers a compelling value proposition to homeowners. The initiative could drive higher sales of Moen's smart devices, boosting their revenue stream. High adoption rates of these devices could also lead to improved customer retention for Farmers Insurance®, as policyholders may appreciate the tangible benefits of reduced risk and costs associated with water damage.

From a retail investor's perspective, this partnership suggests a win-win scenario for both companies involved, enhancing the market position and financial stability of both Moen and Farmers Insurance®.

Tech Expert

Moen's Flo Smart Water Monitor and Shutoff device is a robust example of the Internet of Things (IoT) transforming traditional home utilities. The device’s Microleak™ Technology, which detects leaks as small as a drop per minute, showcases advanced capabilities that are rare in the market. This level of precision in detecting leaks can prevent substantial water damage, making it highly attractive to both homeowners and insurance providers. The integration with the Moen Smart Water App allows users to monitor water usage in real-time and set conservation goals, aligning with growing consumer trends towards sustainability and smart home ecosystems.

For investors, this innovation signals Moen's commitment to developing cutting-edge technologies that meet modern demands. The successful implementation and widespread adoption of this smart water management system could position Moen as a leader in the smart home device market, potentially driving long-term growth.

Smart Leak Detection From Moen Can Help the Insurance Industry and Its Customers to Minimize the Impact of Water Leaks

NORTH OLMSTED, Ohio--(BUSINESS WIRE)-- Moen, the leader in water experiences in the home, today announced an initiative with a major insurance provider designed to drive adoption of Flo Smart Water Monitor and Shutoff devices through special savings and installation programs for its customers. This program can significantly reduce the number of insurance claims customers file related to catastrophic water damage because of residential leaks. Flo Smart Water Monitor and Shutoff devices offer a digitally driven and proactive approach to leak detection, with the ability to help reduce water damage claim frequency events by as much as 96%,¹ as well as household water wasted through preventable leaks by up to 90 percent.² Increasing the number of homes utilizing smart leak detection can help home insurance providers to reduce their risk of water damage claims and control costs, and helps homeowners avoid the expense and disruption caused by preventable water damage.

Moen® Flo Smart Water Monitor and Shutoff devices offer a digitally driven and proactive approach to leak detection. (Photo: Business Wire)

“Not only does water damage create financial and emotional hardship for homeowners, it strains the home insurance industry. Nationally, we estimate that insurers pay out over $15 billion in water claim damages annually³ of which a significant amount are tied to leaks.⁴ By encouraging the use of Flo smart leak detection, Moen can help insurance companies reduce water damage claims caused by water leaks and alleviate costs associated with those claims,” said Jeff Barnes, vice president, business development, Moen. “Additionally, together with the insurance industry, we can help to reduce wasted water, which is especially important in areas where water is scarce. Across the country, an estimated one trillion gallons of water are wasted due to leaks each year.⁵”

Moen will be working with Farmers Insurance^® to help provide Smart Water Monitor and Shutoff devices to policyholders.

The Moen^® Flo Smart Water Monitor and Shutoff continuously monitors the pressure and flow rate of the water moving through a home's pipes, detecting leaks as small as a drop per minute with Microleak™ Technology – anywhere in the home. If the device identifies an issue, it will promptly send an alert through the Moen Smart Water App, enabling users to turn off the water, or in the event of a catastrophic leak, it will automatically shut off the water to prevent major damage. Homeowners also can track water usage by fixture and set conservation goals within the app to further support water-saving efforts.

For additional information about the Moen Flo Smart Water Monitor and Shutoff, visit moen.com/flo. Organizations interested in leveraging the device can contact Partnerships@Moen.com.

¹ Results from the 2020 LexisNexis Study can be found here
² Based on average American annual water leaks of 10,000 gallons
³ Internal Company estimate based on information from sources such as the Insurance Information Institute and the U.S. Census Bureau
⁴ Non-Weather Water Claims
⁵ Environmental Protection Agency

ABOUT MOEN

Moen is the #1 consumer faucet brand in North America, offering a vast array of stylish and innovative kitchen and bath faucets, showerheads, accessories, bath safety products, kitchen sinks, garbage disposals, leak detection products and connected home offerings for residential applications that give consumers more power than ever before to understand and control the water that flows through their homes. These thoughtful designs deliver an exceptional user experience and elevate how people interact with water daily. In addition, Moen^® Commercial offers superior-performing products that can deliver lower lifetime costs for today's facilities. For more information, visit moen.com.

ABOUT FORTUNE BRANDS INNOVATIONS

Fortune Brands Innovations, Inc. (NYSE: FBIN), headquartered in Deerfield, Ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company’s growing portfolio of brands includes Moen, House of Rohl, Aqualisa, Emtek, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe, Yale residential and August. To learn more about FBIN, its brands and environmental, social and governance (ESG) commitments, visit www.FBIN.com.

SOURCE: Moen, Inc.

SOURCE: Fortune Brands Innovations, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240613005425/en/

MOEN CONTACT:

Samantha Eastman or Emily Baker

Falls & Co.

(216) 696-0229

seastman@fallsandco.com

ebaker@fallsandco.com

INVESTOR CONTACT:

Leigh Avsec

Fortune Brands Innovations, Inc.

(847) 484-4211

Investor.Questions@fbhs.com

Source: Moen, Inc.

FAQ

What is Moen's new initiative with Farmers Insurance?

Moen is partnering with Farmers Insurance to promote Flo Smart Water Monitor and Shutoff devices to reduce water damage claims and costs.

How can the Flo Smart Water Monitor and Shutoff device benefit homeowners?

The device detects leaks, sends alerts, and can automatically shut off water to prevent major damage, reducing repair costs and water waste.

How much can the Flo Smart Water Monitor and Shutoff device reduce water damage claims?

The device can reduce water damage claim frequency by up to 96%.

How much household water waste can the Flo Smart Water Monitor reduce?

The device can reduce household water waste from leaks by up to 90%.

Why is Moen's initiative important for insurance providers?

The initiative can help insurance providers lower their risk and costs associated with water damage claims, which total over $15 billion annually.