Top Reasons Water Damage Claims are Denied
Water damage can be a costly and time-consuming issue for homeowners and insurance companies alike. Instances of water damage can cause thousands of dollars in destruction and lead to serious health problems if not treated promptly. Insurance companies promise to cover water damage-related issues, but unfortunately, not all claims are covered. In fact, many claims are denied for various reasons, leaving homeowners feeling frustrated and helpless.
5 Main Reasons Your Water Damage Claim Was Denied
It’s important for homeowners to understand their policy and take necessary precautions to avoid water damage, such as regular maintenance and inspections. By being proactive and knowledgeable, homeowners can avoid common pitfalls and improve their chances of having their water damage claim approved if an accident occurs.
1. Gradual Damage
Most insurance policies don’t cover water damage that occurred gradually over time, like leaks from pipes or faucets. This is because insurance companies assume that homeowners should have been aware of the issue and taken corrective action before the situation escalated. To avoid denied claims and major expenses, it’s essential to take prompt action whenever you notice any leaks or pipe problems and work to correct them quickly. Don’t hesitate to hire a water damage restoration professional to fix the issue if it is more than what you can handle on your own.
2. Lack of Maintenance
It is the responsibility of homeowners to maintain their properties and ensure the safety of both their homes and their belongings. Insurance companies take this into consideration when processing claims, and they may reject a water damage claim if it is found that the homeowner was negligent in maintaining the property. For example, if gutters are not cleaned properly and water overflows into the house and creates damage, the resulting water damage insurance claim may be rejected on the basis of negligence. It is essential for homeowners to prioritize regular upkeep and maintenance of their properties to avoid potential issues and to ensure that their claims are not denied.
3. Flood Damage
As a homeowner, protecting your property is an essential responsibility. While many individuals assume that their standard homeowner’s insurance policy covers flood damage, this is often not the case. It’s important to note that flood insurance and homeowner’s insurance are often two separate policies. If you live in an area prone to flooding, purchasing a flood insurance policy could be a smart investment to protect your home in the event of a natural disaster. Note that standard home insurance also may not cover damage caused by internal issues such as a burst pipe or overflowing washer. To ensure that your property has an appropriate level of coverage for your circumstances, consider speaking with your insurance agent about your options.
4. Delayed Reporting
It’s crucial for policyholders to understand the importance of reporting a water damage claim within the specified timeframe, as failure to do so can have serious implications for the outcome of their claims. Insurance policies typically have specific reporting requirements that policyholders must adhere to. Late reporting can imply that the damage could have been prevented if prompt action had been taken, or that the extent of the damage may have been exaggerated. As a result, reporting a claim late may negatively impact the amount of compensation you receive, potentially causing financial strain. Therefore, it’s crucial to report any water damage as soon as possible to ensure a smooth claims process that meets your needs.
5. Exclusions and Coverage Limits
Homeowner’s insurance policies play a crucial role in protecting our homes and belongings. However, it’s essential to understand that these policies often come with exclusions and coverage limits that policyholders should be aware of before filing a water damage insurance claim. For instance, some policies may not cover certain types of water damage resulting from natural calamities such as hurricanes or earthquakes. Additionally, specific damage types, such as mold infestations caused by water damage, may be subject to coverage limits. As a homeowner, it’s crucial to read through your insurance policy carefully and ask your insurer any questions you may have to ensure that you have adequate protection for your home and belongings.
Water damage is a common problem that many homeowners will face. However, not all water damage claims are created equal, and knowing the common reasons why some claims are denied can be beneficial when submitting for coverage. In this blog post, we’ve highlighted the top reasons why water damage claims are denied, such as gradual damage, lack of maintenance, flood damage, delayed reporting, and exclusions and coverage limits. By being aware of these factors, homeowners can take preventive measures to avoid water damage, maintain their properties, and ensure that their water damage insurance claims are not denied. Remember to always contact your insurance agent to discuss any policy concerns or to obtain any information you need to file a successful claim.
After notifying your insurance of the water damage to your home, you will need to have the damage restored. Make sure you call a reputable water damage restoration expert to quickly restore the damage.
Related Frequently Asked Questions:
How to Maximize Your Water Damage Insurance Claim?
- Mitigate the Damage
- Gather Critical Evidence
- Report the Damage Immediately
- Inform the Insurer of the Type of Damage
- Work with a Public Water Claims Adjuster
- Hire an Insurance Claims Attorney
- Use Trustworthy Vendors
Learn more about how you can maximize recovery on a water damaged claim.
Does Flood Insurance Cover Burst Pipes?
In short, flood insurance doesn’t cover damage caused by burst pipes. It’s designed to protect against damage from natural flooding events such as heavy rain, storm surges, or overflowing rivers. Be sure to review your policy to understand what is actually covered.
Read more to learn about what flood insurance cover and does not cover.
Does Renter’s Insurance Cover Water Damage?
Renter’s insurance typically covers water damage from accidental overflow or water discharge. However, most policies don’t include coverage for flood or sewage water damage unless you’ve added specific coverage to your standard policy. Learn more on Exclusions to Renters Insurance.
About Vince Sandri
Vince Sandri is a content writer and blogger with more than 12 years of experience. His expertise is in creating content related to disaster restoration, including information about preventing and reacting to natural disasters like flooding, water damage, fire and smoke damage, mold growth, storm damage and more.
Vince has been the main contributor to RestorationMasterFinder.com since 2014. Over that time, he has written numerous service pages and blogs for disaster restoration providers featured on RestorationMasterFinder.com. Vince has done extensive research and covered a wide range of topics relating to disaster restoration to help homeowners, business owners, and property managers better protect their property. He understands the problems that disasters like flooding, fire, smoke, and mold can cause as well as the best ways to respond to these issues to limit the damage.
Vince completed his Bachelor of Arts degree at Aurora University and his master’s degree at DePaul University. He has been writing SEO website pages, blogs, and press releases since 2012. Vince is also a musician and can be seen playing in the Chicago, IL area.
