Insurance companies spend $8.5 billion a year on homeowners’ water damage claims. A recent study found that 93 percent of those costs can be prevented by a complete leak detection and shutoff system.
Buoy® is the first complete smart home device for managing household water use, detecting leaks and shutting off water remotely and automatically.
For more than two years, Buoy Labs has been running a pilot with a top 10 insurance provider. Buoy increases the frequency of contact between insurance companies and customers, and provides a wealth of real-time data to the insurer.
How Buoy works
Buoy installs inline next to a home’s shutoff valve and connects to the household WiFi network to send real-time water flow information to the Buoys app. When Buoy detects a leak, the app notifies the homeowner, who can turn off water remotely, preventing extensive damage.
Our whole-house leak detection and shutoff system benefits
Prevent 93 percent of the cost of water damage, or about $8.5 billion a year
Increase the frequency of contact between insurers and homeowners
Real-time usage data enables a more accurate assessment of risk
Prevent costly damage
End surprise water bills
More control and understanding of their water usage
The data we provide to our insurer partners can increase consumer satisfaction and retention, improve customer support interactions, reduce out-of-pocket costs, and save the time and stress of property loss.
Water claims accounted for 45 percent of losses in 2015. Annually, 2% of policy holders will file a water damage claim, averaging $10,000. Buoy provides insurers an estimated savings of over $180 per year per policy.
With Buoy, homeowners get a home protection product that’s integrated into their smart home, a value proposition more compelling than standard leak detection methods. Nearly 40 percent of consumers report they would switch insurance providers in order to obtain smart home products. Insurers can expect to recoup their IoT investment across the lifetime of a customer, and IoT offers increase customer retention.