Introduction

1. Introduction It’s all about your Perspective

2. Water Damage is responsible for greater than 25% of residential insurance claims annually. In the U.S. that means more than $9 billion in losses each year.

3. Lost Water • The United States Environmental Protection Agency estimates that 13.7% (1 of every 7 gallons) piped into a home is lost or wasted. • The American Waterworks Association estimates that 15-20% of all water piped into a home is lost or wasted. • Less than 1% of the earth’s water is potable.

4. Getting to the Economic Issue • People worry about their home being affected by burglary and fire. • People do not realize that they are 6 TIMES more likely to have water damage than to be burglarized. • They also do not realize that they are 7 TIMES more likely to have water damage than to have a fire. • Water affects the long-term safety of the home, the value of the home and the peace of mind of the homeowner.

5. watEr Loss examples

6. What’s Changed? Until Now… • There has been no need to educate consumers on water’s destructive effects because there were no whole house systems that were simple and low-cost to protect homes from water damage. • The #1 product in the world (the Leak Defense System®) was beyond the reach of the average consumer ($1500+). • We need “The Smoke Detector for Water Leaks” (Leak Defense Alert).

7. What’s required/ideal? • A product that every residence needs • A product that is easy to understand • A product that is affordable to all • A product that can be explained in 1 or 2 sentences • A product that can be installed by a homeowner • A product that can be managed remotely

8. Leak Defense Alert • Why “The Smoke Detector for Water Leaks” • Everyone has smoke detectors in their home and they understand the principle of how smoke detectors work • No one is intimidated by the concept of adding a new smoke detector • Everyone realizes the benefit of smoke detectors • Everyone can afford a smoke detector • Adding just one smoke detector for water for a whole house is easy

9. Three Components • Sensor that attaches to the pipe • Control Box & Communicator • Power Supply (AC power converter)

10. Principle- How it Works • Leak Defense Alert looks for continuous flow over time • All appliances in the home pull water cyclically (water flows and then stops) Ex. Washing machine and dishwasher • Each home has different water usage patterns due to # and type of occupants, # of water features, etc. programmed at install • The only thing that does not stop is a leak. If water runs for longer than you like the “Smoke detector for water leaks” alarms and lets you know to minimize potential loss and damage

11. LEAK DEFENSE SYSTEM In-line Three major components: • Control Panel • Valve Box • Transformer(not pictured here)

12. CRITICAL POINT How both of our systems work… Principle of: Continuous waterflow over time

13. What Does It Look Like? Three major components: • Sensor Pipe Attachment • Control Box • Transformer Sensor attaches to pipe, applies heat, monitors flow Low voltage Transformer Control Box receives data from pipe sensor. Translates data from monitoring water flow. Also manages communication to external devices.

14. Demonstration 1 of 2 • The system uses the pipe as its sensor • Every 5 minutes the system heats the pipe to run a test • Once the system reaches the proper temperature it stops heating and measures the change in temperature over time • The faster water is flowing the more quickly the heat is taken away by the flowing water • If water is not flowing, the temperature very slowly lowers and returns to the ambient water temperature • There are two settings for the system Home and Away

15. Demonstration 2 of 2 • In the Home mode you are home and actively using water • In the Away mode no one is home, so not much water is being used and only by cyclical devices (i.e., ice makers, humidifiers) • Each mode has an adjustable time setting (i.e., 30 minutes in the Home mode and 10 minutes in the Away mode) • The system alarms only when you exceed the time parameters • If it alarms then you need to check it out (just as you would with your other smoke detectors)

16. Product Comparison • All other whole house products are antiquated technology, often called “WATER BUGS”. • A water bug is placed under each appliance or fixture (1 for every sink, toilet, washing machine, dishwasher, ice maker, water heater, humidifier, etc.) • All of the rest of the piping in the house is unmonitored AND • If the leaking water flows away from the sensor and does not trip it, the leak may not be caught until it reaches another sensor (=after the flood…) 2. Products for INDIVIDUAL APPLIANCES • Most commonly on water heaters and washing machines • These two devices account for a small (<10%) of leaks • All of the rest of the house is unmonitored

17. Leak Defense Alert 1. Monitors Water Where It Enters the Home • Not limited to a single location or appliance, protect the entire home with one device 2. Monitors Looking for Continuous Flow • Allows for normal water use to reduce hassles • Looks for flow outside of normal parameters set for that home 3. Lets You Know When You Might Have a Problem • Communicates out to you in the manner you desire about a potential problem