Data-Driven Strategies to Prevent Basement Flooding

Mitigateway is proud to have played a key role in an initiative aimed at mitigating basement flood risks in Canada. This initiative led to the development of a comprehensive guide for municipalities on how to lower flood risk, highlighting how past claim data can identify the root causes of basement flooding and shape effective prevention strategies.

The guide ¹, crafted with expertise from the Institute of Catastrophic Loss Reduction (ICLR)² and the Technical Committee of CSA Z800-18³—part of the CSA Group Standard on basement flood protection and risk reduction—focuses on essential elements like foundation drainage systems, sump pump systems, backwater protection, and sanitary building sewers. Through the analysis of historical flood claim patterns and claim data that is often saved in unstructured claim text, Mitigateway provided insights into the most frequent causes of basement flooding, directly shaping the guide’s targeted recommendations.

One key advantage of data-driven prevention is its ability to avoid recency bias—a common pitfall in risk management. Recency bias occurs when the most recent events disproportionately influence decisions, leading to prevention initiatives that may seem effective but fail to address the most significant risks. For example, after a particularly harsh winter, there might be a surge in efforts to protect homes from ice damming on roofs. While this is important, focusing too much on ice damming might cause insurers and homeowners to overlook more prevalent issues, like basement flooding from poor foundation drainage, which historically leads to more frequent and costly claims.

Mitigateway’s data-driven approach ensures that prevention efforts focus on the most likely causes of loss, offering the highest return on investment. For instance, the guide’s sump pump recommendations were derived from data analysis of failure patterns across 14 brands and 30 models, with pump ages at failure ranging from 6 months to 10 years. This analysis revealed that neither brand nor age significantly influenced failures. Instead, improper installation emerged as the primary cause of pump and float system failures.

These data insights helped Mitigateway shape guidelines that ensure sump pits are optimally designed to maintain appropriate water levels and that pumps are installed according to best practices and local safety standards.

Insurers, by virtue of handling thousands of claims, have accumulated a wealth of data that can pinpoint the root causes of losses. This data-driven approach allows for the development of highly effective prevention strategies that address the specific issues that have historically led to claims. Through our work with insurers and organizations such as the ICLR, Mitigateway is not just preventing basement floods—it’s setting a new benchmark for the entire industry. By turning past claims into actionable insights, Mitigateway is helping to build a future where homeowners are better protected, and insurers can proactively manage risk.

Footnotes: