Moen Signs Strategic Agreement with Amica Insurance to Boost Usage of Leak Detection Technology

Rhea-AI Summary

Moen has partnered with Amica Insurance to promote the adoption of Flo Smart Water Monitor and Shutoff devices among policyholders. These smart devices reduce water damage claims by up to 96% and preventable water leaks by up to 90%, offering a proactive solution to water leaks. Water damage constitutes 24% of all homeowner insurance claims, costing insurers over $15 billion annually in leak-related payouts. The initiative aims to alleviate these costs and reduce the estimated one trillion gallons of water wasted annually due to leaks. The devices use Microleak™ Technology to detect leaks as small as a drop per minute and automatically shut off water during catastrophic events, with alerts sent via the Moen Smart Water Network App. Homeowners can also track water usage and set conservation goals within the app.

Positive

• Partnership with Amica Insurance to promote smart leak detection devices.
• Devices reduce water damage claims by up to 96% and preventable leaks by up to 90%.
• Water damage accounts for 24% of homeowner insurance claims, costing over $15 billion annually.
• Devices can detect leaks as small as a drop per minute and automatically shut off water during major leaks.
• Homeowners can track water usage and set conservation goals via the Moen Smart Water Network App.

Negative

• None.

Insights

Financial Analyst

The strategic agreement between Moen and Amica Insurance aimed at promoting the Flo Smart Water Monitor and Shutoff devices is a significant move with potential financial implications. By integrating smart leak detection technology, Moen could see a boost in product sales and market penetration, particularly with the backing of a major insurance provider like Amica. This collaboration could lead to increased revenue streams and a stronger market position for Moen in the home automation and smart technology sectors.

From an investor's standpoint, the deal signifies a potential reduction in insurance claims for water damage, which currently accounts for a significant portion of homeowner insurance claims. This could translate to cost savings for Amica and potentially lower premiums for policyholders, making the insurance company more competitive. Moen's innovative solution could create a new standard in water damage prevention, positioning it as a leader in this niche market.

Furthermore, the environmental aspect of reducing water waste aligns with increasing consumer and regulatory focus on sustainability, which can enhance Moen's brand image and open up new opportunities in markets sensitive to ecological concerns. The immediate financial benefits may be observed in product sales, while the long-term gains include brand loyalty and market expansion.

Market Research Analyst

Analyzing this partnership from a market perspective, the alignment between Moen and Amica Insurance is a strategic move to tap into the growing smart home market. The smart home market is projected to grow substantially over the next few years, driven by consumer demand for convenience, security and energy-efficient solutions. By offering incentives and installation programs, Moen is likely to boost the adoption rate of its Flo Smart Water Monitor and Shutoff devices among homeowners.

This initiative underscores a broader trend where insurance companies are increasingly promoting smart home devices to mitigate risks and reduce claim frequencies. For Moen, this partnership not only opens up a direct sales channel but also provides a compelling value proposition to homeowners who can benefit from reduced insurance premiums and enhanced home protection.

From an investor's perspective, this move can be seen as Moen responding to market trends and consumer needs, potentially positioning itself for substantial growth. The partnership with a trusted insurer like Amica adds credibility and could help Moen gain a competitive edge in the smart home technology market.

Smart Leak Detection From Moen Can Help Homeowners Avoid Expensive and Preventable Flooding

NORTH OLMSTED, Ohio--(BUSINESS WIRE)-- Moen, the leader in water experiences in the home, today announced an initiative with Amica Insurance aimed to encourage policyholders to adopt Flo Smart Water Monitor and Shutoff devices through special savings and installation programs. Use of smart technology can significantly reduce the incidence of catastrophic water damage due to residential leaks. Flo Smart Water Monitor and Shutoff devices offer a digitally driven and proactive approach to leak detection. They have 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%.² Increasing the number of homes utilizing smart leak detection can help homeowners avoid the expense and disruption caused by preventable flooding.

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

“Water damage accounts for 24% of all homeowner insurance claims and can create financial and emotional hardships for homeowners.³ Nationally, we estimate that insurers pay out over $15 billion in water claim damages annually, of which a significant portion are tied to leaks⁴. By encouraging the use of Flo smart leak detection, Moen can help reduce water damage claims caused by water leaks and alleviate costs associated with those claims,” said Jeff Barnes, vice president, business development, Moen. “Working together with the insurance industry, we can also 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 Amica to provide Smart Water Monitor and Shutoff devices to policyholders across the United States.

"Amica has been a partner of Moen's for five years, and we look forward to enhancing our water loss mitigation efforts together,” said Laurie Tremblay, Amica Senior Innovation Analyst. “Water leaks are one of the leading causes of preventable insurance claims each year, and with Moen's innovative system, we can help homeowners better understand their water usage and help prevent water damage."

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 Network 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 Insurance Information Institute (III)
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.

Moen is part of Fortune Brands Innovations, Inc. (NYSE: FBIN), a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. Moen anchors Water Innovations (WINN), which also includes several brands under the House of Rohl^® including Perrin & Rowe^®, ROHL^®, Riobel^®, Shaws^® and Victoria + Albert^®. Fortune Brands’ other brands include Fiberon^® composite decking and railing products; Master Lock^®, Yale^® residential, August^® and Sentry^® Safe security products; LARSON^® storm doors and Therma-Tru^® entry door systems. For more information, please visit www.FBIN.com.

ABOUT AMICA INSURANCE

Amica is the longest-standing mutual insurer of automobiles in the U.S. A direct writer, Amica also offers home, life, marine and umbrella insurance, as well as annuities.

Founded on the principles of outstanding service, Amica creates peace of mind and builds enduring relationships with its customers. That mission is shared and supported by thousands of employees across the country. For more information, visit Amica.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624606992/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 Incorporated

FAQ

What is the strategic agreement between Moen and Amica Insurance about?

The agreement aims to promote the adoption of Flo Smart Water Monitor and Shutoff devices among Amica Insurance policyholders to reduce water damage claims and preventable leaks.

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

The devices can reduce water damage claims by up to 96%.

What percentage of homeowner insurance claims are due to water damage?

Water damage accounts for 24% of all homeowner insurance claims.

How much water is wasted annually due to leaks in the US?

An estimated one trillion gallons of water are wasted annually due to leaks.

What technology does the Moen Flo Smart Water Monitor use to detect leaks?

The device uses Microleak™ Technology to detect leaks as small as a drop per minute.

Can homeowners track their water usage with the Moen Flo Smart Water Monitor?

Yes, homeowners can track water usage and set conservation goals via the Moen Smart Water Network App.