Case Study: A Condo’s Path from Water Losses to Insurance Stability
How one Northeast condo saved $100,000 in insurance and prevented several leaks using ProSentry’s smart monitoring system.
How one Northeast condo saved $100,000 in insurance and prevented several leaks using ProSentry’s smart monitoring system.
A 20-unit high-end condominium in an urban Northeast market faced a turning point when a newly elected board member uncovered a rapidly escalating insurance crisis. Previous water-related incidents had led to policy challenges, mounting premiums, and growing homeowner concern about the building’s long-term risk profile.
This case study outlines how the board sought a smarter, more proactive approach to water-leak mitigation, and how implementing a comprehensive monitoring system helped the building stabilize its risks, prevent further losses, and make meaningful progress toward improving its insurance standing.
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Before exploring new technology, the condominium was already dealing with the aftermath of repeated water incidents, resulting in claims that totaled tens of thousands of dollars. These losses created a pattern that made the building increasingly difficult to insure.
The consequences were immediate and severe. The building’s carrier issued a non-renewal with only 90 days’ notice, leaving the board with little time to find replacement coverage. With mainstream insurers unwilling to take on the risk, the property was forced into the non-admitted, or secondary, insurance market, where premiums doubled overnight. To secure the new policy, every homeowner was assessed thousands of dollars, creating financial strain and raising concerns about the building’s long-term insurability.
Determined to reverse the building’s insurance trajectory, the board began an extensive search for a more reliable, long-term leak mitigation strategy. They evaluated five different technologies and compared two primary approaches: valve-based systems that require plumbing integration, and sensor-based systems designed for easier deployment in existing buildings.
After assessing cost, disruption, reliability, and long-term usability, the board chose ProSentry’s sensor-based solution. The hardware stood out for its compact, modern design and dependable performance. Equally important was the company’s service model and its clear understanding of how leak monitoring could support improved insurance outcomes. ProSentry also came with existing broker and risk-mitigation relationships, giving the board greater confidence in both the technology and the team behind it.
The board moved forward with a building-wide leak detection strategy, installing sensors in every unit and at each key water source. This ensured full coverage across kitchens, bathrooms, laundry areas, and HVAC components, locations most commonly associated with water-related claims.
The monitoring system was configured to keep all essential stakeholders informed. Building staff received real-time alerts to respond quickly to potential issues, while board leadership gained visibility into overall risk trends and recurring problem areas. Unit owners were also included in the notification process, allowing them to take immediate action whether at home or away. Together, this created a coordinated monitoring network designed to detect issues early and prevent small leaks from developing into costly damage.
In the 14 months following installation, the building experienced ten leak alerts, all of which were identified and resolved before causing damage. During this period, no insurance claims were filed, marking a significant shift from the building’s previous pattern of losses.
Four of the ten leaks occurred while the residents were not home, underscoring the value of real-time monitoring and coordinated response between staff and the board. The alerts covered a range of common failure points, including toilets, washing machine hoses, dishwasher lines, and an HVAC condenser pan overflow. Several of these events had the potential to cause meaningful damage, but each one was caught early because the sensors detected moisture at the source.
Within just two months of installing the monitoring system, the building saw a measurable shift in how insurers evaluated its risk profile. The board secured a $100,000 reduction in insurance costs, an early signal that proactive mitigation efforts were resonating with carriers. Although the property remained in the secondary market at that point, the improved loss-prevention measures helped demonstrate that the building was taking meaningful steps to address its previous challenges.
Over the following two years, the results continued to strengthen the building’s insurance position. With zero reported water damage claims and ten prevented incidents, the board could now present a clear, data-supported record of improved performance. The system’s reporting and documented alerts also provided concrete evidence of risk controls for brokers and underwriters.
With this track record in place, the building is re-entering the insurance market to pursue options with admitted carriers, along with potential water-mitigation discounts offered by several major providers. The goal is to fully transition back to admitted carrier coverage and continue lowering long-term insurance costs through sustained risk reduction.
The building’s experience illustrates how proactive leak detection can meaningfully influence both day-to-day operations and long-term financial outcomes. After installing the system, the condominium achieved a $100,000 reduction in insurance costs, successfully detected and addressed 10 leak events, and reported zero claims during the following years. These results provided insurers with a clear record of improved risk management and helped restore the building’s overall insurability.
A 20-unit high-end condominium in an urban Northeast market faced a turning point when a newly elected board member uncovered a rapidly escalating insurance crisis. Previous water-related incidents had led to policy challenges, mounting premiums, and growing homeowner concern about the building’s long-term risk profile.
This case study outlines how the board sought a smarter, more proactive approach to water-leak mitigation, and how implementing a comprehensive monitoring system helped the building stabilize its risks, prevent further losses, and make meaningful progress toward improving its insurance standing.
Before exploring new technology, the condominium was already dealing with the aftermath of repeated water incidents, resulting in claims that totaled tens of thousands of dollars. These losses created a pattern that made the building increasingly difficult to insure.
The consequences were immediate and severe. The building’s carrier issued a non-renewal with only 90 days’ notice, leaving the board with little time to find replacement coverage. With mainstream insurers unwilling to take on the risk, the property was forced into the non-admitted, or secondary, insurance market, where premiums doubled overnight. To secure the new policy, every homeowner was assessed thousands of dollars, creating financial strain and raising concerns about the building’s long-term insurability.
Determined to reverse the building’s insurance trajectory, the board began an extensive search for a more reliable, long-term leak mitigation strategy. They evaluated five different technologies and compared two primary approaches: valve-based systems that require plumbing integration, and sensor-based systems designed for easier deployment in existing buildings.
After assessing cost, disruption, reliability, and long-term usability, the board chose ProSentry’s sensor-based solution. The hardware stood out for its compact, modern design and dependable performance. Equally important was the company’s service model and its clear understanding of how leak monitoring could support improved insurance outcomes. ProSentry also came with existing broker and risk-mitigation relationships, giving the board greater confidence in both the technology and the team behind it.
The board moved forward with a building-wide leak detection strategy, installing sensors in every unit and at each key water source. This ensured full coverage across kitchens, bathrooms, laundry areas, and HVAC components, locations most commonly associated with water-related claims.
The monitoring system was configured to keep all essential stakeholders informed. Building staff received real-time alerts to respond quickly to potential issues, while board leadership gained visibility into overall risk trends and recurring problem areas. Unit owners were also included in the notification process, allowing them to take immediate action whether at home or away. Together, this created a coordinated monitoring network designed to detect issues early and prevent small leaks from developing into costly damage.
In the 14 months following installation, the building experienced ten leak alerts, all of which were identified and resolved before causing damage. During this period, no insurance claims were filed, marking a significant shift from the building’s previous pattern of losses.
Four of the ten leaks occurred while the residents were not home, underscoring the value of real-time monitoring and coordinated response between staff and the board. The alerts covered a range of common failure points, including toilets, washing machine hoses, dishwasher lines, and an HVAC condenser pan overflow. Several of these events had the potential to cause meaningful damage, but each one was caught early because the sensors detected moisture at the source.
Within just two months of installing the monitoring system, the building saw a measurable shift in how insurers evaluated its risk profile. The board secured a $100,000 reduction in insurance costs, an early signal that proactive mitigation efforts were resonating with carriers. Although the property remained in the secondary market at that point, the improved loss-prevention measures helped demonstrate that the building was taking meaningful steps to address its previous challenges.
Over the following two years, the results continued to strengthen the building’s insurance position. With zero reported water damage claims and ten prevented incidents, the board could now present a clear, data-supported record of improved performance. The system’s reporting and documented alerts also provided concrete evidence of risk controls for brokers and underwriters.
With this track record in place, the building is re-entering the insurance market to pursue options with admitted carriers, along with potential water-mitigation discounts offered by several major providers. The goal is to fully transition back to admitted carrier coverage and continue lowering long-term insurance costs through sustained risk reduction.
The building’s experience illustrates how proactive leak detection can meaningfully influence both day-to-day operations and long-term financial outcomes. After installing the system, the condominium achieved a $100,000 reduction in insurance costs, successfully detected and addressed 10 leak events, and reported zero claims during the following years. These results provided insurers with a clear record of improved risk management and helped restore the building’s overall insurability.
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Water damage incidents, gas leaks, and mechanical failures share a common trait: they often announce themselves outside of business hours. In many buildings, detection systems for these risks may not exist, or if they do, they may be spread across separate platforms that don't communicate with each other.
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