Water leak detection systems

What is a water leak detection system?

A water leak detection system automatically responds if an event that could cause water damage occurs. It is directly tied into your home’s water system.

The systems comprise sensors, automatic shutoff valves, and alert mechanisms. They detect the presence of water, extreme temperatures that could cause issues (like frozen pipes), or irregularities in the flow of water inside pipes. Any of these could signal a possible leak in the pipes or from an appliance like a hot water tank or dishwasher.

Each system has several sensors, installed in areas most prone to leaks. That includes near dishwashers, laundry machines, bathrooms, plumbing manifolds in walls and under sinks. Sinks are a particularly common source of leaks, accounting for 68% of interior leaks.²

There are many leak detection systems on the market.

Some simply sense that water is present and sound an alarm or send a text. If you’re home, you’ll know to run and shut off your water. But if you’re not home, an alarm alone won’t help — the water will continue to run, potentially causing costly damage. Other types, like flow-based systems, will turn the water off when they sense abnormal flow. But they may sense false positives, leading to automatically shutting off the water when the homeowner is just using more water than normal.

Fully integrated systems

A much better form of leak detection system is one that automatically stops water flow when a problem is detected, using sensors that look for displaced water. This ensures there’s a real leak before shutting the water off.

ZoJacks, for example, is a fully integrated smart water protection system designed to detect leaks, prevent floods, and minimize water damage. Unlike alarm-only systems, ZoJacks automatically shuts off the water supply if it detects a leak or an abnormal temperature (like a freezing temperature that could cause pipes to freeze and burst).

The ZoJacks system is one option that qualifies for a condo insurance discount for Square One customers. Contact ZoJacks to learn more about installing the system in your home.

These systems are fully customizable and continuously monitor the home. They include backup batteries to ensure continuous operation during power outages and do not rely on Wi-Fi. This way, if the power goes out, the system remains functional.

“Water damage is one of the most common and costly issues homeowners face — but it’s also one of the most preventable,” said Nate Baldry, CEO at ZoJacks. “Systems like ZoJacks give homeowners real peace of mind by detecting leaks early and automatically shutting off the water before serious damage occurs. It’s a simple, reliable way to protect your home — and avoid the stress and expense of unexpected water damage.”

How do leak detection systems work?

There are many forms of leak detection systems on the market. The most sophisticated, such as ZoJacks, use a network of sensors strategically placed near high-risk areas, such as:

• Under sinks, dishwashers, refrigerators
• Behind washing machines
• HVAC systems
• Near water heaters or plumbing lines

When a sensor detects water, abnormal humidity, or freezing conditions, it triggers an alert and automatically shuts off the water supply to prevent damage. It alerts individual residents through the connected mobile app, email, or text. In full-building systems, property managers and facilities teams can access full building software to monitor the entire system at a glance.

Simpler leak detection systems simply sound an alarm when they detect water.

Some leaks are small and difficult to notice until water has infiltrated deep into nearby materials. Many others happen overnight or while residents are out of the home.

“About half of the water leaks we’ve observed occurred after hours or on weekends,” said Baldry. “During these times response windows are the longest, as residents are often asleep or out of the house. This increases the severity of a leak event and underscores the importance of a reliable and automatic leak detection system and shutoff.”

Insurance considerations

Given the frequency and cost of water damage claims, insurance providers often ask whether a home has a leak detection system installed. Some even offer discounts for qualifying systems.

For example, Square One offers a condo insurance discount for condo owners who have an approved system installed in their unit.

Apartment-style condo buildings are at particular risk from water damage.

“Leak activity in condo units isn’t rare,” said Baldry. “Especially in buildings constructed in the 1970s and earlier. We’ve observed leaks in these units at a rate more than twice that of newer buildings.”

The damage from an interior water leak is often covered by home insurance, but not always. Slow, gradual damage that occurs over weeks or months is typically excluded; insurance deals with sudden losses.

If a loss is covered, the policy usually offers additional living expenses coverage as well. That means coverage for additional expenses a homeowner or tenant may incur if they have to move out while their home is repaired.

In a condo, there is the risk that a leak damages units below the affected unit as well. While a property’s master insurance policy may cover this damage, the owner of the unit with the leak may be assessed the policy’s deductible. Some personal policies offer optional coverage for loss assessments of this type (including Condo Owner’s Protection from Square One).

Commonly asked questions

Are there any subsidies for leak detection systems?

Unfortunately, there are no government subsidies available for leak detection systems in Canada.

Some home insurance providers offer discounts for homes that have them installed. There are discounts available for both commercial coverage for condos (property portion coverage discounts) as well as individual unit insurance discounts.

What is the life expectancy of a leak detection system?

Leak detection systems are low-maintenance devices that can last a very long time. You may have to replace some batteries once in a while, but otherwise the system should last as long as your home. Some providers (including ZoJacks) offer maintenance packages so you don’t have to maintain the system yourself.

What should you do in the event of a water leak?

The first thing is to always stop the flow of water. If you don’t have a leak detection system with an automatic shutoff, shut off the water supply. You can either do that locally near the site of the leak (like under the sink) or, failing that, at the valve for the main supply line. In a house, the main valve is usually in the basement. In an apartment or condo, there may not be a master valve for the whole unit.

Start clearing up the water immediately. If the leak was severe, call your insurance provider. They’ll help determine the best course of action, which may include emergency repairs.

Is a water leak detection system worth it if I already have home insurance?

Home insurance helps you recover from sudden damage, not prevent it. It may not cover slow or ongoing leaks, and even covered claims can involve deductibles, disruptions, and temporary relocation. A leak detection system helps prevent damage before it happens, reducing the likelihood of a claim altogether.

What happens if a leak occurs when I’m not home?

Without a detection system, water can continue flowing for hours or even days, causing extensive damage. With an automatic shutoff system in place, the water supply can be stopped as soon as a leak is detected, even if no one is home, significantly reducing the impact.

Are all leak detection systems the same?

No. Some systems only provide alerts when water is detected, while others monitor water flow and shut off supply based on unusual usage patterns. More advanced systems use physical sensors to confirm the presence of water and automatically shut off the supply, helping reduce both damage and false alarms.

What should I look for when choosing a leak detection system?

Key features to consider include automatic shutoff capability, sensor-based detection (rather than flow-only), backup power, reliable connectivity (such as cellular vs. Wi-Fi), and ease of installation. Systems that continue to operate during power or internet outages provide an added layer of protection.

Sources

1. “More and More Water Damage.” infoassurance.ca, infoassurance.ca/en/blog/home/more-and-more-water-damage. Accessed 4 March 2026.
2. “Condominium Water Risk & Mitigation Performance Report: Operational Portfolio Analysis: Real-World Device Telemetry 2025 Data Review.” ZoJacks.

Want to learn more? Visit our Getting to Know Your Home resource centre for the complete rundown on all your home's systems and features. Or, get an online quote in under 5 minutes and find out how affordable personalized home insurance can be.