Mercury Insurance Water Leak Detection Program Aims to Save Water and Money for California Homeowners during Historic Drought

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) is subsidizing smart home water monitoring devices from Flume for California homeowners to help track water usage and prevent leaks amid the ongoing drought. With an average of over 40% of California homeowners' premiums due to water damage risk, this initiative is crucial for protecting property and reducing costs. After a $99 rebate, policyholders can purchase the Flume device for $50, with an additional $25 rebate available post-installation. The program aims to improve leak detection and promote water conservation, benefiting both homeowners and the environment.

Positive

• Subsidizing Flume devices helps homeowners monitor water usage, reducing potential damage costs.
• Program encourages water conservation, aligning with environmental efforts amid California's drought.
• Homeowners save on insurance premiums by mitigating water damage risks.

Negative

• None.

LOS ANGELES, March 10, 2022 /PRNewswire/ -- Mercury Insurance (NYSE: MCY) announced it will be subsidizing the cost of smart home water monitoring devices from Flume, providing California homeowner policyholders a way to track their water usage and prevent costly leaks. This water leak detection program is designed to help homeowners save water and money during the ongoing drought.

"Small leaks in your home's pipes and irrigation system can result in an incredible amount of wasted water," said Mercury Insurance Product Manager for California, Adam Bakonis. "Water leaks are preventable and the key is catching them early to minimize the damage. This is achievable through our partnership with the Flume, a simple water leak detection device homeowners install that can discover large, small and in some cases, hidden leaks."

On average, more than 40% of a home's premium in California is attributable to the risk of water damage. Due to a water loss, homeowners may lose access to their kitchens or bathrooms and, in some cases, have to move out entirely for months. 

Installing the Flume system will help mitigate water loss before severe damage to the home can occur. Flume works with virtually any water meter and is easily self-installed in minutes. Along with the corresponding app, users are able to view and monitor indoor and outdoor water use from anywhere, at any time. This increased visibility provides complete home protection by catching and alerting users of leaks as they happen, inside and outside of the home. The use of Flume products can result in lower water bills and the avoidance of potentially catastrophic property damage due to leaks.

"Ten months after installing a Flume device, one of our policyholders was out of town when a leak notice was triggered. They called a friend and asked them to check on the home," said Bakonis. "A supply line ruptured and flooded the first floor. Though there was damage, the loss would have been worse if the leak had not been discovered until the person returned home. A significant amount of additional water would have escaped if mitigation efforts started late, making a potential impact over a larger area which could have resulted in the removal of more materials and potentially more disruption for the insured."

Flume digitizes 4.9 million gallons of water per day, and insights from the smart water detection device has found that:

• More than 34% of Flume users find a leak within one week of installation of the device
• More than 70% of all Flume users find a leak over time
• Flume customers reduce water consumption by at least 10% year over year after installation
• 66% of Flume users are able to reduce their water bill
• 80% of Flume users were more aware of their water use after installing Flume and stated that Flume changed their water behavior

After a $99 instant rebate from Mercury, policyholders will pay just $50 at checkout (plus tax and shipping) and they will be eligible to receive an additional rebate of $25 after installing Flume. This brings the net cost down to $25 (plus tax and shipping).

Following are key benefits from Mercury's water leak detection program:

The territory and age of a home are primary factors for susceptibility to water leaks. During the past decade, Californians have seen their home values increase at a historic rate. According to the real estate industry trade publication, "Realtor Magazine," the median California home value is projected to grow to more than $1 million by September 2030¹. The current and future investments of many homeowners, however, may be at risk. When selling a home, water leak damage must be disclosed to potential buyers. California's aging homes are a leading cause of concern as Mercury, one of the largest carriers in the Golden State to offer a water leak detection device discount, reports nearly 50% of single-family homes it insures in California are more than 50 years old, with Southern California skewing the oldest (75% of Los Angeles County; and 55% of Orange County). However, Mercury advises homeowners that water leaks begin to occur well before the half century mark.  

California's ongoing drought is a motivating factor to take action. Slow dripping faucets or irrigation systems only heighten the seriousness of California's ongoing drought. While many believe their home water supply system is leak-free, the average household's leaks can account for nearly 10,000 gallons of water wasted every year, and 10% of homes have leaks that waste 90 gallons or more per day, according to the EPA². Some California water districts are offering rebates for the installation of water leak detection and shutoff devices³. "Our program, combined with California water district rebates, means some homeowners may be eligible for rebates that would cover the entire cost of these devices and their installation. Not only is our program good for the environment, but leaky faucets getting the attention they deserve will save homeowners money on their water bill and insurance," said Bakonis.

Flume offers 24/7 monitoring, leak alerts, and usage data that allows users to understand exactly where their water is going, indoors and out, and compare water usage and savings with neighbors.

Mercury Insurance has a broad array of optional coverages to protect against exposures faced by today's homeowners, including Home Systems Protection, Service Line Protection, Identity Management Services and Home Cyber Protection. Mercury's water leak detection program is available at https://www.mercuryinsurance.com/leak-detection/ or by contacting a Mercury agent.

About Mercury Insurance
Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Illinois, Georgia, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultracompetitive rates with excellent customer service. Mercury has earned "A" ratings from A.M. Best and Fitch, as well as ranking highest in the J.D. Power 2021 U.S. Insurance Digital Experience Study^SM and four consecutive "Best Auto Insurance Company" awards from Insure.com. For more information visit https://www.mercuryinsurance.com/ or follow the company on Twitter or Facebook.

About Flume
Inspired by California's record drought, Flume empowers homeowners to better understand their usage and conserve water. By providing real-time water use information, Flume protects the home, puts the power of water consumption and conservation in the customer's hands, and improves the relationship with our most precious resource. The Flume® Smart Water System consists of an easy-to-install sensor that adapts to most existing home water meters, which communicates water use to the homeowner in real-time. To date, Flume has tens of thousands of devices installed across the United States. Learn more at flumewater.com

1. https://magazine.realtor/daily-news/2020/10/27/what-will-homes-be-worth-in-10-years
2. https://www.epa.gov/watersense/fix-leak-week
3. California water districts providing Flume rebates include: EBMUD (Bay Area); Foothill (La Canada/Flintridge);  Helix (La Mesa); and  MWD (Southern California)

 

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SOURCE Mercury Insurance

FAQ

What is the purpose of Mercury Insurance's new leak detection program in California?

The program subsidizes water monitoring devices from Flume to help homeowners track water usage and prevent leaks, especially during drought conditions.

How much will California homeowners pay for the Flume device through Mercury Insurance?

After a $99 rebate, homeowners will pay $50 for the Flume device, with the potential for an additional $25 rebate upon installation.

What percentage of California homeowners' premiums are attributed to water damage risk?

On average, over 40% of a California homeowner's insurance premium is due to the risk of water damage.

What benefits does the Flume device provide to homeowners?

Flume detects leaks, offers real-time water usage data, and allows homeowners to save on water bills and insurance costs by preventing damage.

How does the Flume device affect water consumption among its users?

Flume users have reported reducing water consumption by at least 10% year over year after installation.