In the world of construction insurance, a silent but powerful shift is underway. While fire has historically been considered the most catastrophic peril, the data tells a new story: water is now the number one cause of Builders’ Risk claims. And the industry is taking notice.
In a recent webinar hosted by HSB and Wint, John Stokes, SVP of Applied Technology Solutions at HSB, and Yaron Dycian, Chief Product Officer at Wint, explored how artificial intelligence is fundamentally changing how insurers, contractors, and developers prevent water damage, and dramatically reduce risk.
Here are the five biggest takeaways:
1. Water Is the #1 Cause of Construction Losses, And It’s Largely Preventable
For decades, fire was considered construction’s most dangerous and expensive risk. But that’s changed. Water damage is now the #1 cause of Builder’s Risk claims, and the third most common loss across all property and casualty policies. It’s also one of the costliest, with over $13 billion in annual damages in the U.S. alone.
What’s more surprising? Most of this damage is preventable.
These losses often hit at the worst possible time, late in the construction cycle, when systems are running, finishes are installed, and project value is at its peak. A single faulty fitting or overlooked valve can derail the timeline, inflate the budget, and create downstream issues like mold, corrosion, and legal exposure.
Fire used to be seen the same way, an inevitable, high-impact threat.
But as Stokes noted:“As we began to see more sophisticated fire mitigation solutions… we started to see the frequency and severity of fires come down.”
Now, water is following that same path. Prevention is no longer just possible, it’s expected.
Bottom line: Water damage has become construction’s most frequent and expensive threat. But with the right technology, it’s becoming much easier to eliminate.
2. Insurance is No Longer the Only Safety Net
With water-related losses escalating, insurance terms are getting tougher. Higher deductibles, tighter limits, and stricter underwriting are becoming the norm, especially in large construction projects.
As John Stokes noted: “We’re seeing premiums in the industry continue to increase… And even if the insurer isn’t mandating a higher deductible… lower limits might be the only way to keep premiums at a controllable level.”
This shift is encouraging a broader view of risk management, one that goes beyond coverage to include prevention.
In fact, insurers are increasingly requiring builders to include water mitigation strategies in their planning. One example is JCoP (the Joint Code of Practice), a UK-driven industry standard that now mandates water risk management on major projects. This could serve as a model for similar regulatory requirements in other countries as the cost of claims continues to rise.
Bottom line: Risk is no longer just about the rare catastrophe—it’s about business continuity, budget stability, and reputation. As water claims climb, smart risk mitigation is becoming a financial necessity.
3. From Payouts to Prevention: Insurance Is Being Reinvented
The traditional insurance model has long operated on a react and respond basis: assess the damage after it happens, then process the claim. But with rising water losses and more sophisticated technology available, that mindset is quickly being replaced by a predict and prevent approach.
John Stokes described how the old model worked: “Oftentimes, the insurance company doesn’t know what’s happening at the site they insure until a claim has been submitted… When we say react and respond, it really refers to a traditional actuarial approach that most insurers have deployed for a long time.”
And he contrasted it with the new approach: “Predict and prevent, on the other hand, means that as an insurer, we are actually looking to drive best practices to the value that we bring to our customers… More and more of these best practices include these really innovative technology solutions.”
This evolution also unlocks smarter underwriting. Instead of treating risk as a statistical average, insurers can evaluate individual projects based on real-world mitigation practices and system-level performance. That’s a win for developers, insurers, and everyone in the value chain.
Bottom line: The insurance industry is no longer waiting for water damage to happen. It’s investing in ways to prevent it entirely, and rewarding builders who take action early.
4. AI and Smart Tech Are Redefining How Water Risk Is Managed
The tools for managing water risk have evolved far beyond simple sensors. What’s emerging now is a new class of intelligent, responsive technologies that can not only detect anomalies but understand and act on them in real time.
Insurers are taking notice.
As insurance evolves, so has the technology. We’ve moved from simple leak detection to AI-powered systems with automated shutoff, anomaly detection, and even remote control. These technologies don’t just sense water, they understand usage patterns and take action instantly.
John Stokes explained how the insurance industry is actively vetting these technologies—not just observing them: “We’ve tested these solutions in real-world environments… with our own insurance customers, at our cost and at our risk… so we can put our stamp of approval on it.”
This kind of technical due diligence—often involving engineers, actuaries, and real-time field deployment—has led to growing confidence in next-generation water management systems. Insurers now look for solutions that are:
- Proactive: Recognize usage anomalies before they become damage
- Autonomous: Shut off water at the source, in real time
- Resilient: Work during power and network outages
- Data-rich: Provide insights that reduce both risk and waste
“More and more of these best practices include innovative technology solutions… proven to be highly effective at identifying these issues before they occur.”
This new generation of water tech includes multi-sensor fusion, combining flow analytics with traditional detection to increase accuracy and minimize false alerts. It’s exactly the kind of innovation insurers are now prioritizing when evaluating risk partners.
One such example is Wint, which combines AI with flow monitoring to identify abnormal usage patterns, differentiate between normal and leak events, and shut off water automatically. It’s one of the first technologies to be validated and backed by an insurer—with a performance guarantee underwritten by HSB.
Bottom line: As technologies mature, insurers are embracing solutions that shift their role from payer to partner—rewarding proactive mitigation and enabling smarter, more sustainable coverage models.
5. Wint Sets the Standard: The First Insurance-Grade Water Management Solution
While many technologies claim to reduce water risk, Wint is the first water management and leak mitigation platform to be validated, and backed by a performance guarantee from a leading insurer. This is a breakthrough for the construction industry, where deductibles are rising and water claims remain the top cause of loss.
Through its partnership with HSB, Wint offers an insurance-backed performance guarantee that provides contractors and developers with a new level of confidence and financial protection, supported by HSB’s own field deployments and extensive claims data.
Key stats:
- 73% reduction in water claim frequency
- 90%+ reduction in claims severity
- 20–28% drop in water consumption on average
- $250K performance warranty from HSB, built into the product, no separate policy needed
Wint’s design meets the highest enterprise and insurance-grade standards:
- AI-driven detection
- Full-system coverage (HVAC, domestic, fire lines)
- Remote shutoff
- Works even during outages (power/network-independent)
As John Stokes summarized: “We’ve done our research… We’ve gone through our vetting process… and we’ve seen a pretty dramatic reduction in claims activity where this technology is installed.”
Bottom line: Wint is more than leak detection, it’s the first insurance-grade water management and leak mitigation platform, designed for builders, trusted by insurers, and proven to deliver ROI and peace of mind.
The Path Forward
Water risk is no longer a question of “if.” It’s a matter of “how prepared are you?”
Smart developers are taking control with solutions like Wint, earning trust from insurers, reducing costs, and delivering predictable, high-quality projects.
Quick readiness checklist:
- Do your systems detect and shut off leaks before damage happens?
- Are you rewarded with better insurance terms for mitigation?
- Can your technology prove ROI and reduce claim exposure?
If not, it’s time to make water risk a thing of the past.
Next steps:
- Watch the full webinar
- Book a demo to see how Wint helps you prevent water damage, cut costs, and build smarter
