It was Christmas Eve in 2022, and I was celebrating with my family. Since I run the claims team for Holmes Murphy’s Fraternal Practice, my phone number is listed as the emergency contact. The first phone call came through at 8:30 a.m. on Christmas Eve. Frozen pipes and water damage. I took down the information and prepared to act, but my phone rang again with another claim. Little did I know how much my holiday plans were about to change.

Not a Winter Wonderland

Within the span of two days, a historic extratropical cyclone had created crippling winter storm conditions. Blizzards, high winds, snowfall, and record cold temperatures swept most of the United States and parts of Canada. The cold wave affected the U.S. from Washington State to the eastern seaboard and as far south as Miami, Florida.

On December 24, 110 million people across 36 states were under wind chill alerts. December 25 brought the coldest recorded Christmas in decades to major U.S. cities. As of the morning of December 26, 250,000 homes and businesses were without power, while the storm began to gradually weaken as temperatures were forecast to warm up later that week. The National Weather Service issued a number of dire reports during that time. The swift drop in temperatures, combined with frigid winds, caused pipes to burst even in states that are accustomed to winter freezes, such as New York, Michigan, Ohio, Pennsylvania, and Illinois.

For the 2,200 properties in our Fraternal Property Management Program, students were home for winter break and properties were largely empty. Unoccupied buildings meant that the heat was turned down and the detection of burst pipes was delayed. Even if property managers followed our recommendation of daily walk-throughs, a pipe could burst right after the inspection, leaving almost a full day of flowing water.

Cold Weather, Hot Claims

The Fraternal Property Management Association (FPMA) program saw 78 freeze claims totaling $9 million in damages—the average claim was over $100,000.

How did the claims get so large?

• Pipes burst in attics which led to greater water damage as water poured down onto lower floors. A three-story fraternity house with a basement could see damage throughout the entire property.
• Damage did not occur until the weather warmed up and the frozen pipe melted.
• Properties were unoccupied, with damage detection delayed.
• Sprinkled properties saw the greatest damage with insufficient insulation of sprinkler pipes adding to the damage.

Reduce Your Risk

Our fraternal practice regularly communicates prevention practices to clients in the FPMA program. Here are a few tips for identifying risks due to winter perils.

• Windows and doors not closed or functioning properly.
• Facility not adequately insulated with interior areas of the property having better heating than along outside walls.
• Lack of maintenance on heating systems or boilers.
• Running out of fuel or the furnace pilot light blowing out.
• Well-intentioned member turns off the heat to save expenses.
• Frozen pipes create breaks in the plumbing system, causing catastrophic water damage once the water thaws.
• No oversight of the property resulting in damage found later.
• Risk of unexpected displacement.
• Property premiums increase because of these claims, which every member helps to pay.

Our fraternal program has a partnership with ServiceMaster, providing a dedicated point of contact for participants in the FPMA program. Clients are guaranteed that a real person will answer the dedicated phone line and will have the opportunity for a priority response to a loss. We also offer discounts for the installation of leak detection systems—learn more on our practice partners page.

Protect Your Property

Addition to being aware of winter risks, keep these tips in mind to protect your property.

• Remove hoses from outside faucets and drain lawn sprinkler systems.
• Insulate pipes in unheated and drafty areas like attics and basements.
• Keep the heat on. Set the thermostat at or above 60 degreesduring the winter months.
• Conduct daily walkthroughs throughout the house over extended breaks. Make sure the person doing the walk though knows the emergency contacts and how to turn the water off.
• Check all windows and doors to ensure they are closed tightly.
• Hire a professional property management company to help maintain and secure the property.
• Make sure the location of the main water shut off is known and clearly marked.
• Consider installing a water detection/heat monitoring system.
• Open the indoor faucets slightly to allow water to trickle. Moving water does not freeze as easily.
• In extremely cold weather, leave the doors to cabinets that contain water lines open; this will allow heat to enter that area.
• Call your heating contractor immediately if there is a problem with the furnace and take immediate action to prevent further damage.

We have other resources to help clients protect their properties. Winter Fact Vs. Fiction and our Winter Break Checklist are both filled with great tips. Check out all our property resources on our fraternal website for more information, and don’t forget to check the National Weather Service website to get an idea of what we might expect this winter.

We’re Here to Help

Our claims team worked diligently through the 2022 holiday weekend, responding to the barrage of claims that were reported. It was not the holiday season our claims team expected, but we welcomed the opportunity to support our clients so they could focus on celebrating with their loved ones. If you’re interested in learning more about our services, reach out anytime. Happy holidays!