Embracing Innovation as Water Heaters Get Smarter

Steve Jobs, with his wire-rimmed glasses and black turtleneck, became almost as iconic as his Apple logo. He was the epitome of an innovator. But not all innovators–or innovations–are embraced, at least initially. In fact, some innovations may cause even those at the forefront of an industry to respond with an unequivocal “no thank you.”

But no matter the industry, the spirit of innovation keeps me on my toes and challenges me to think outside my homeowners insurance box and to imagine how I might do things better…more efficiently at least and revolutionary at best.

A slam-dunk innovation I discovered recently is the Model 1 digital tankless water heater by Heatworks, a wonderful product for today’s more energy efficient “smart homes” developed by Jerry Callahan and his team at ISI Technology.

The product inspired my team and I to consider the ways in which the homeowners insurance industry, as well as our customers, might benefit from a “smart” water heater like the Model 1.

How does a digital tankless water heater help homeowners?

Unlike other tank and tankless water heaters that employ elements or burners, the Model 1 technology uses graphite electrodes, electronic controls, and the natural electrical resistance in water to heat the water, so the units never require maintenance and don’t plague homeowners with the usual performance problems of traditional tank and other tankless models.

The Model 1 digital water heater ensures stable water temperatures (imagine no more cold showers when the washing machine is running!) and cuts energy costs. The electric water heating technology is exceptionally energy efficient and exceeds the energy conservation standards for residential water heaters implemented by the U.S. Department of Energy in 2014.

The benefits also include reduced risk of damage to homes caused by busted water heaters, which have an average lifespan of about 8-12 years.

Combine that long list of features with the “Internet of Things” — the interconnection of smart devices and home automation — and you have a customizable product that can be controlled remotely with an Android or iOS device. The smart water heater joins the roster of home appliances that can be controlled by a mobile app.

Offering a discount to policyholders who replace their current water heaters with a Model 1 tankless system could be an excellent incentive.

In order to gauge the interest among local businesses in partnering with us, we contacted a number of plumbing contractors but were surprised to find that they weren’t interested. Those we spoke with were either unaware of the benefits of the system, happy with the status quo (since replacing busted water heaters generates a reliable source of income), or simply uninterested in change.

In general, change goes against human nature. Steve Jobs didn’t let that stop him and went from the young man experimenting with electronics in his sister’s vacated bedroom to the innovator at the top of CNBC’s First 25 list of business leaders at the forefront of change. He understood that change is largely consumer driven—powerful and fast. Jobs drove that change by going directly to the consumer, not only with some of the most innovative telecommunications products in history but with face-to-face customer service to help them better utilize those products.
If anything, this experience has proved to be a lesson in how innovative ideas get–or don’t get–adopted. But we will continue to be inspired by the innovations that have already become an integral part of our daily lives and those, like the Model 1 water heater, that still have the potential to change lives for the better.