Making An Insurance Claim For Water Damage – Paul West is an experienced private risk advisor with over a decade of experience advising successful families and individuals.
You come home from vacation to discover that a small pond has materialized in your basement. Something in the house leaked, overflowed, or exploded. Your first reaction? Panic. Your second:
Making An Insurance Claim For Water Damage
If you are sure it is safe to do so, take immediate action to prevent more water from flowing where it shouldn’t. This could mean turning off the main valve in your home (which often requires a key) or an individual water supply valve, also known as a “shutoff.” The stops leading to your dishwasher, toilet, washing machine, or ice maker can usually be closed manually (clockwise) to stop the flow of water. Here you will find more information on how to turn off the water supply valves.
How To Make A Strata Insurance Claim?
By the way, it’s a good idea to investigate water leak detection systems and automatic shut-off valves before disaster strikes. With a small investment, you could avoid a serious claim and potentially save money through a discount on your home insurance.
In 2018, nearly one in four home insurance claims were the result of water damage. Between 2014 and 2016, the number of water damage claims in the US exceeded the number of losses caused by fires and hurricanes. What do these numbers mean? Water damage is quite common. But not all types of water damage are covered by a typical homeowners policy.
As a general rule, water damage is covered by home insurance if it is sudden or accidental. In other words, you couldn’t predict what was going to happen. Water damage is NOT covered when it is the result of a lack of home maintenance or neglect (for example, a roof that has not been repaired in 30 years). Flood damage is also not covered (unless you have a separate flood insurance policy in Massachusetts).
While homeowners insurance covers many water damage scenarios, there are certain situations where your policy may not provide coverage. Becoming familiar with these common exclusions can help you better manage and maintain your property to avoid costly repairs. Below are some examples of water damage that is not typically covered by insurance:
Helpful Water Damage Insurance Claim Tips
To ensure you have adequate coverage for your specific needs, review your insurance policy and discuss any concerns with your independent insurance agent. By understanding the limitations of your policy, you can take proactive steps to maintain your property and minimize the risk of facing costly, uncovered water damage situations.
When it comes to water damage, time is of the essence. According to FEMA, mold and mildew can begin to develop within 24 to 48 hours after exposure. So, if your pipe bursts on Friday night, don’t wait until Monday morning to tell your insurance agent/company what’s happening. Most carriers maintain 24/7 hotlines to guide you through the claim process and advise you on clearance.
If you clean and dry the area yourself, it makes sense to at least contact a water damage/restoration company. Insurance companies may not be willing to recommend a specific water damage company, but they should be able to help you identify several local options to choose from.
NOTE: If your exclusive insurance agent is not available to speak with you at the time the claim arises, be sure to follow up during business hours. Because? There is a big difference between insurance
When Does Homeowners Insurance Covers Water Damage?
. The ideal is for both of you to know what is happening in your house. In the event of a claim, your agent’s job is to act as your advocate and help ensure you receive a timely and satisfactory response from the provider. Agents can also be valuable in helping negotiate a settlement for any damages (see Step 6), one of the reasons we recommend working with an independent agent, rather than a direct writer or “captive” agent.
A water damage/restoration (WD/RC) company is often required to pump out standing water and completely dry surfaces before moisture or mold spreads. If mold is already present, the WD/RC may need to apply special cleaning solutions after sealing and ventilating the wet area.
Not all water damage and restoration companies are created equal. Unfortunately, some may try to take advantage of an emergency situation where they need help quickly. Before signing any contract or work order, be sure to obtain a quote and written proof that the company is licensed or insured. Read online reviews of the company. Ask for references from clients in your town or neighborhood.
Keep in mind that the WD/RC you choose does not have to be the same company you use to repair walls, floors, woodwork, ceilings, cabinets, etc. after the water ran out. Many water damage companies offer contracting services in addition to water and mold removal, but that doesn’t mean they are the best option for your repairs. Again, don’t sign any contracts or accept additional work without getting a quote…and talking to at least one other contractor. Often the best person to do carpentry, flooring or drywall is someone who specializes in carpentry, flooring or drywall, not a WD/RC.
Infographic] Does Your Auto Vehicle Insurance Cover Flood And Water Damage?
In severe cases, water damage can lead to unsafe or unhealthy living conditions inside the home. Major flooding can introduce household chemicals or sewage into the mix, which is not something you should go through. There may be a risk of electrocution. And even after standing water is removed, mold spores can contaminate the air.
If you suspect any of these issues are at play, ask your agent and WD/RC team to advise you on the safest course of action. Most insurance policies include coverage for hotel accommodations and even food expenses if you are forced to vacate. But you’ll want to know how much coverage (if any) you have for these items, as well as how you’re expected to address and label these expenses (pay them yourself before receiving reimbursement). If you stay and eat elsewhere, be prepared to save receipts.
Your home restoration team will likely take photos of the damaged area, but you should take your own. (If you later decide to cut ties with this company, you won’t want to chase them for documents.) You should also take photographs of any items that need to be cleaned or replaced. In the case of water damage, items that get wet are only part of the loss. Objects in drawers or cabinets where mold has spread should also be cleaned by a professional. You may be entitled to reimbursement for these expenses.
NOTE: In the case of water damage, most insurance policies do not cover the appliance that caused the problem in the first place. So, for example, if your ice maker or dishwasher is leaking behind your cabinets, your insurance may cover cabinet and drywall replacement, but not a new refrigerator or dishwasher.
Water Backup? We Can Back You Up.
As soon as possible, the insurance company will send an expert to your home. He or she will assess the damage, take photographs and measurements. The adjuster will also ask questions about how and when the damage occurred. Its objective is twofold. First, you’re trying to estimate how much it will cost to repair the damage. Second, it seeks to determine if anyone was at fault.
Don’t worry. Unless you intentionally created the problem (for example, insurance fraud), your insurance policy is there to help you. The insurance is intended for accidents. Even the silly accidents. If you leave a candle burning overnight and your house burns down, you’re still covered, although yes, it was your fault. The same principle applies to water damage. If you install your own toilet (incorrectly, by accident) and water starts raining through the roof, you’re still covered.
However, if it was someone else’s fault, the insurance company has an interest in finding out. Let’s say, for example,
I didn’t install that toilet incorrectly; Let’s say it was a licensed plumber, who should have known better. In that case, your adjuster and insurance company may try to “subrogate,” which means pursuing
Home Insurance Facts And Statistics: Coverage & Claims
Insurance company for the damages it caused. The same goes for a defective device. Your insurance company may try to collect damages from the manufacturer of a washing machine that does not work properly. This is good news for you because if they can be successfully subrogated, you may not have to pay the deductible on the claim.
At some point after your evaluation, your adjuster will send you a written estimate of what they think it should cost to repair your damage. You will probably create a line item list for labor and materials (drywall, paint, insulating mortar, tile, etc.). Depending on the size of the claim, you may also be able to issue a check for all or part of this amount, so you can get started on repairs. Hurrah!
Just be prepared; That settlement figure may seem a little low. Unless your home insurance policy was written to provide a “replacement cost value,” your total estimate will likely be based on an actual cash value or ACV. The ACV represents the current value of your property, not what you paid for it or what it would cost to make it new. So, for example, if you spent $20k on new cabinets 15 years ago, your loss settlement will reimburse you $20k.
Now, here’s a complicated caveat…in some cases, insurance companies will offer what is called a
What You Need To Know About Water Damage Insurance Claims
Filing an insurance claim for roof damage, insurance claim for water damage, how to make an insurance claim for water damage, house insurance claim for water damage, home insurance claim for water damage, filing an insurance claim for water damage, when should you make an insurance claim for water damage, insurance claim for water damage to kitchen, filing insurance claim for water damage, making an insurance claim, insurance claim tips for water damage, should i file an insurance claim for water damage
