Water Damage Prevention Focus: Student Housing

Risks Across the Building Life Cycle

During Construction

Student housing is often built on tight-knit campuses surrounded by in-use buildings, leaving limited space for staging. Staying on schedule becomes paramount, not only for storing materials but also for contracted labor and coordinating installation schedules. Labor shortages mean that a project delay may result in contractors not being available when they're needed, especially for projects requiring specialized knowledge, such as low-flow plumbing fixtures, energy-efficient washers, and adjustments to heating, ventilation, and air conditioning (HVAC) systems. Understaffed contractors may also lead to quality issues with a higher potential for errors, as a small group of employees is trying to complete work that would normally require several more people.

Modern student housing blends the complexity of commercial buildings with the density of multifamily living. Incorporating plumbing for bathrooms, in-unit laundry, kitchens, and sprinklers creates a maze of lines within tight floor plans that also need to accommodate HVAC and electrical. Many developments now combine dining, health services, retail, and recreation under one roof, further increasing the amount of plumbing and potential leak points.

As construction progresses to the final stages of the project, those potential leaks can wreak even more havoc as high-end finishes, such as custom millwork, decorative ceilings, and designer fixtures, are installed. While water damage at earlier phases may only cause drywall to be replaced, the damage costs multiply the closer the building is to completion.

During Renovation

Renovating an occupied or partially occupied building poses unexpected challenges in managing risk. Building drawings can be out of date, meaning that plumbing may have been moved after the last known blueprint was done, or beams are thicker than indicated. Mechanical, electrical, and plumbing systems that were advanced in their time may no longer be up to code, and attempting to move old or brittle materials can cause them to break.

Plumbing in parts of the building may also not have been in use for months or years, and upon reactivation, can trigger leaks in hard-to-diagnose places. The project's complexity is also amplified as new wiring, pipes, and ductwork are being run alongside existing materials. For example, the Internet boom means many buildings do not have the wiring and outlets necessary to meet today's Internet and power-driven needs. Information technology (IT) now has to add cable into already tight spaces where it wasn't even a consideration.

Even newer buildings face risks from clogs, chemical erosion, or weakened fittings that occurred due to improper maintenance, poor construction of the original property, or human error.

During Occupancy

Many students are living independently for the first time and may not recognize the urgency of a small leak; they may be unsure of the process to report an issue, or they might assume someone else has already reported it. Kitchens, bathrooms, and shared laundry areas are high-risk zones, and even harmless mistakes, like hanging a coat hanger on a sprinkler head or leaving a window cracked during freezing temperatures, can lead to water loss events and major insurance claims.

Student schedules may also impact the severity of a water loss event. During weekends or holiday breaks when occupants can be home visiting family and friends, leaks could go unnoticed for days, compounding the extent and cost of damage.

Understanding the Real Impact of Water Damage

When water losses occur in student housing, more is at stake than just the immediate cleanup.

Lost revenue. With property occupancy planned for months or even years in advance, not having proper housing available means the immediate loss of rent, but it can also lead to lost tuition as students may transfer to another educational institution that has housing available.

Displaced students. While residence halls or apartments are being repaired, universities and property management teams are responsible for finding alternate accommodations, such as costly hotel stays, or delaying academic schedules so students will be able to attend their classes.

Damaged possessions. In occupied spaces, water incidents destroy not just property finishes but students' personal possessions, such as electronics, textbooks, furniture, and clothing. Handling all of the customer service aspects of documenting, storing, and replacing damaged or destroyed property is a drain on the university or property management team's resources and staff.

Technology and infrastructure losses. Smart building systems, elevators, and Wi-Fi networks can all be impacted by moisture. Downtime can affect the building's operations and greatly impact students' abilities to access key features they're paying for to complete coursework.

Health and safety concerns. Standing water and excess humidity promote mold growth, threatening air quality and increasing remediation costs. The longer moisture persists, the more severe the damage and recovery costs become.

Reputational and legal risks. Water damage incidents have led to high-profile lawsuits alleging negligence and construction defects, costing millions in repairs, temporary housing, and reputational harm. As one example, a West Coast university's investigation into improperly installed shower pans led to a more thorough review of the property that uncovered larger water damage issues from poor overall construction. Remodeling, lost income, and additional expenses made the initial complaint against the contractor balloon from $2.7 million up to an estimated $40 million to $50 million.⁴

Protection with Internet of Things (IoT) Technology

Because student housing faces water damage exposure from construction through occupancy, deploying water damage technology offers powerful protection throughout the build-to-occupancy life cycle, including the following.

Water detection sensors. Small but powerful sensors can be placed virtually anywhere, such as under sinks, in risers, or near mechanical equipment, to detect even trace amounts of water. Their portability and cost-effectiveness make them ideal for construction as they can be moved as the project progresses. Once occupancy is obtained, they can remain in place to monitor high-risk areas with an anticipated 5 to 10-year battery life. Alert thresholds can also be set to varying sensitivity on a device-by-device basis, and enhancements such as ropes or cables can be added to expand the coverage area.

Leak detection cables and mats. These provide continuous coverage along walls or beneath equipment, identifying even a few drops of water. While beneficial during construction, they are designed for permanent installation and integration with the building management system. While newer to the market, these devices have quickly become the new standard of monitoring for high-risk spaces, such as laundry facilities.

Water flow meters. Deployed on water mains, these devices measure water flow in real time to help understand abnormalities on a project after work hours. For example, off-hour flow rates may signal a leak or a hose that was left on. Alerts can be triggered so the site team knows to investigate further. Devices can also be permanently installed as part of a post-occupancy plan to submeter parts of the building to support continued monitoring for leaks, analyze usage for green initiatives, identify potential preventative maintenance, or even allocate water usage bills to specific units.

Remote water shutoff valves. These remotely controlled valves allow for manual, scheduled, or automated shutoffs within minutes of detection. This capability minimizes the spread of water during an incident and can isolate problem areas without disrupting water to the entire building, protecting both active construction zones and student-occupied spaces. The remote feature is especially useful for times when the building may be unoccupied; construction teams and security teams alike can turn off the water via an app without needing to be on-site.

Humidity sensors. Elevated humidity can signal hidden leaks or drying failures from previous water loss events. These sensors are used to monitor conditions throughout the project, providing early warnings before damage occurs. During construction, high humidity can impact mud or grout drying times, millwork integrity, or other finishes. When the building moves to occupancy, mechanical rooms, laundry spaces, or bathrooms can be continually monitored as they are prone to increased or prolonged humidity, which can lead to mold growth.

Temperature sensors. Detecting freezing or fluctuating temperatures is key to avoiding frozen or burst pipes or construction-related delays due to poor curing or drying of mud or grout. They're especially useful in vacant or partially heated sections of a building, helping identify spots where pipes, sprinkler lines, or mechanical systems may be vulnerable to low temperatures. Upon occupancy, these devices can be especially helpful in maintaining overall building temperature, such as students leaving a secured door continually propped open or forgetting to close a window during frigid temperatures, which can have severe consequences for all occupants.

Together, these devices create a layered defense that detects issues early, alerts teams instantly, and contains water before it spreads. Devices can augment student self-reporting or manual maintenance inspections to ensure potential loss events are handled quickly. Automated alerts ensure no issue goes unnoticed. For example, consider a two-room unit with a shared bathroom among four students. When a water leak appears beneath a leaky bathroom sink, it may be easy for each student to think it's only spilled water. With a properly installed sensor, the leak can be identified and trigger an alert within seconds, preventing a minor drip from turning into a multi-unit insurance claim.

Construction teams also get full visibility into the building with integrated dashboards that overlay sensor locations on project drawings or building layouts, providing a real-time view of conditions across one site or an entire campus portfolio. As the technology can stay in place for occupancy, property teams can benefit from the same dashboard, enabling them to identify systemic trends, prioritize resources, and benchmark performance across various student housing options.

Insurance Innovation Through Prevention

Insurers increasingly recognize that deploying IoT technology as part of a strong risk management strategy is reducing loss exposures and delivering better portfolio outcomes. Projects equipped with water monitoring and shutoff systems consistently show reduced claim frequency and severity, and because of this, insurers are choosing to provide more favorable terms, lower deductibles, or broader coverage options when IoT technology is present.

For student housing, retaining the technology solution as part of ongoing operations is also a strong insurability move. Active IoT protection helps reduce the variable of human error while providing documented proof of preventive maintenance and rapid response. While facilities are occupied, management may only be able to complete full maintenance checks after each semester. Deploying IoT sensors means having "eyes and ears" at all times on the property so issues can be addressed as they arise, not all at once at the end of a school semester.

The result is a safer, more resilient property that's ideal to insure, from the first day of construction to years after students move in.

Protecting Investments

While water damage in student housing is a risk throughout the build-to-occupancy lifecycle, it can be prevented through a strong risk management strategy that includes IoT technology.

It is not only about avoiding losses; as higher education today is all about the experience the institution provides, these sensors and devices help safeguard people, property, and reputations, which ultimately contribute to the premium living experience students are expecting.

¹ Mary Scott Nabers, "Enrollment Growth Fuels Campus Building Boom Nationwide," Government Market News, September 2025.

⁴ Alexa Lomberg, "Rebuilding a $50 Million Mistake," City on a Hill Press, May 2014.