Water damage is a frequent issue in US households. In fact, one in 50 insured homes is affected by water damage each year. Insurers are likely to attempt to underpay or deny a claim. Here’s how homeowners can maximize their water damage insurance claim.

 

Understanding Water Damage

Dishwashers, water heaters, washing machines, and refrigerators are common household appliances that can leak and cause significant water damage to the surrounding areas. Homeowners who ignore signs of appliance malfunction may experience water damage.

Additionally, faulty plumbing systems can lead to water damage. In areas like the Midwest, where frigid winters are common, burst pipes are a frequent issue. Unaddressed leaks in pipes can also result in severe water damage.

Severe rainstorms, overflowing rivers, and hurricanes can lead to flooding and water damage throughout the home. Flooding is a major concern, especially if the sump pump fails. Similarly, sewage backups can push water into the home, causing damage.

Structural damage can be significant when building materials are exposed to moisture for extended periods. If water damage from any of these scenarios is not promptly repaired, walls and floors can warp and rot. Mold can begin to grow within 24 to 48 hours.

Different Types of Water Damage Insurance

Here are the main types of water damage insurance coverage you should be aware of:

• Homeowners Insurance: This type of insurance typically covers water damage caused by sudden and accidental incidents such as burst pipes, appliance malfunctions, or accidental overflows. For instance, if your washing machine leaks and causes damage to your floors and walls, your homeowners insurance can help cover the repair costs. However, it’s important to note that homeowners insurance usually doesn’t cover damage from flooding, which is a separate risk.

Read: How does Homeowners Insurance Cover Water Damage?

• Flood Insurance: Flood insurance is specifically designed to cover damage from flooding, which can occur due to heavy rains, storms, or rising rivers. This type of insurance is essential if you live in a flood-prone area. Standard homeowners insurance generally does not cover flood damage, so you may need to purchase flood insurance separately to protect your home and belongings.
• Renters Insurance: If you’re renting a home or apartment, renters insurance can help cover water damage to your personal belongings. For example, if a leak from an upstairs apartment damages your furniture and electronics, renters insurance can help you replace these items. However, renters insurance does not cover damage to the building itself.
• Condo Insurance: Condominium insurance provides coverage for your personal property within your condo and may also cover damage to the condo’s interior structure, depending on the policy. This is important if you’re a condo owner and need protection for both your belongings and the parts of the building that you are responsible for.
• Building Property Insurance: For commercial properties, building property insurance covers water damage to the structure and contents of the building. This is crucial for businesses to protect against damage from internal water sources, like pipe leaks or malfunctioning equipment.
• Umbrella Insurance: Umbrella insurance offers an extra layer of protection beyond what is covered by standard policies. It can provide broader coverage for various risks, including water damage. This type of insurance is beneficial if you want additional security, particularly if you face higher risks or have significant assets to protect.

How to Maximize Your Water Damage Insurance Claim

Water damage repair costs can be high, so it’s important to work with your homeowner’s insurance to cover the losses. However, dealing with the insurer can be stressful and confusing. Insurers often aim to keep the claim amount as low as possible, even if you are fully covered. We have outline a process that can help you maximize your insurance claim.

Mitigate the Damage

Maximizing a water damage insurance claim starts by limiting the damage. Failing to control the damage can result in the insurer claiming the homeowner did not intervene; and, to them, these are sufficient grounds for denying a partial or complete claim.

Lessening the damage depends on what type of water damage has occurred. If hurricane-force winds broke the windows and allowed moisture inside, the homeowner should board up the windows. Protect a leaky roof with tarp. Turn off the water when a leak is present inside the home.

Gather Critical Evidence

Document the water damage with photos and videos; the latter can be especially helpful evidence, so the homeowner should describe what he sees while taking the videos. Note the value of each damaged item and its replacement cost. Keep all receipts for any repairs performed by plumbers or roofers.

Also critical is documenting efforts to stop the water damage and prevent further destruction to the property. For example, if water has pooled around the dishwasher, take photos and videos of the water. Then, clean up the water to prevent additional damage.

Report the Damage Immediately

Notify the homeowner’s insurance company of the water damage as soon as possible to avoid risking a denial of the claim. Homeowners should file a claim even when they are unsure of whether water damage is covered. The insurer will let the homeowner know what is covered.

Insurance policies may stipulate that water damage must be reported within a certain time frame, such as within 72 hours of the loss. Call the insurance company’s 24-hour claim reporting call center or report the claim on their online portal. Record details associated with reporting the claim.

An insurer will ask when the leak started, and the answer will significantly impact the claim. Most insurance companies do not cover leaks that occur over a period of time, even if hidden from view. Rather than provide a date range, let them know the date the damage was found.

Inform the Insurer of the Type of Damage

Insurers treat flood and water damage differently. Flood damage is covered under a separate insurance policy. Water damage, however, includes events, such as burst pipes and malfunctioning appliances. Most policies cover water damage, so inform the insurer of the type of damage sustained.

Work with a Public Water Claims Adjuster

An adjuster from the insurance company may contact the homeowner to begin work on the claim. However, adjusters affiliated with the insurer may be biased and attempt to minimize the insurance payout. It’s better to hire a public adjuster, especially when the claim is significant.

Hire an Insurance Claims Attorney

Homeowners can best protect their interests in a major water damage claim by hiring an insurance claim professional. Claims are denied less frequently, and the insured receives more compensation when an insurance claim professional works for the homeowner’s best interests.

Use Trustworthy Vendors

The insurance company may recommend their own roofers, plumbers, or restoration services. These companies receive their work from the insurer, so their assessment may not be objective. Rather, when filing a claim for water damage, work with professionals that are reputable and trustworthy.

Call a Water Damage Restoration Contractor

A dependable water damage restoration company can help limit and restore damage from water and assist with insurance claims. Professional technicians are committed to stopping water damage in its tracks and returning your property to its pre-loss condition swiftly and efficiently.

Crews of highly trained technicians arrive promptly to assess the extent of ruin. After developing a restoration plan, they extract all excess moisture using high-tech equipment. They dry structural elements within the property, as well as carpets, upholstery, and furnishings, using powerful dehumidifiers.

Water damage restoration specialists provide content cleaning for any damaged items. If mold colonies have developed, they eliminate the mold. They also apply an antimicrobial to prevent mold and bacterial growth. A final inspection with the homeowner completes the proven process.