Video transcriptWater Damage and Insurance: What You Need to Know
Hey Zakhar, as you can imagine, water, sewage, damage don't ever happen at a good time, right? People don't set aside money every month to pay for these types of damages, typically. Can you help us understand a little bit better about what's covered with insurance? What type of damage? What type of loss can people anticipate within homeowners insurance coverage?
Steve, there are many different insurance carriers, different policies that they offer to customers, different prices for the premiums, but typically what we've seen is water damage that is sudden and accidental is covered by insurance. So if you can think of water pipe burst, overflowing washing machine or dishwasher, refrigerator line broke and flooded your kitchen, that was sudden, accidental. It wasn't a maintenance issue. Normally we see these type of losses are covered by insurance.
Things that are maintenance issues, just like I mentioned, something that the homeowner could have prevented, normally those things are not covered by insurance. Something that water, sewage over time clogged gutters that were not cleaned up and caused water damage inside. Those are city backups, unfortunately are not covered by insurance. Things like Sump Pump, they are based on the insurer's policy. They're normally not covered, but the homeowner can add Sump Pump failure or Sump Pump backup. They can add a limit and a coverage to their policy.
So if you have a finished basement and you have a Sump Pump, it's probably a good idea to call your agent and make sure that you're properly covered if the loss would occur. Another thing that we see often, the claim is being denied by the insurance because of the negligence of a homeowner. And what that means is water damage happened and the homeowner did not call the contractor to do the mitigation, which is stopping the damage to continue, as well as clean up and drying, and it causes secondary damage.
More materials are affected, larger areas, now you have mold growth. We know from science, mold can grow between 24 to 48 hours if the humidity is over 60%, and mold is typically not covered by the homeowner's policy. So that could mean that the claim can be denied. So the time is of the essence. That is why we, when the homeowner calls us any day, any time, 24-7, whether it's a Christmas night or Thanksgiving day, we're going to be there typically within one hour and start that mitigation and the cleanup process.
Water-damage coverage depends on the policy and the cause of the loss. A restoration company can document the damage and completed work, but only the insurer and adjuster can decide what the policy covers.
Start with the policy and the cause
When you report a loss, your insurer will ask what happened, when it happened and what parts of the property were affected. Give a factual description and ask which policy language, limits, deductibles and endorsements apply.
Flooding from surface water is generally handled differently from water released inside the building. FEMA notes that homeowners policies generally do not cover flood damage, which usually requires separate flood insurance. Sewer backup, sump pump failure and mold can also depend on policy-specific endorsements or limits. Ask your agent about your exact coverage.
What to do after discovering water damage
- Put safety first. Do not enter standing water near electrical equipment or a damaged structure.
- Stop the source when it is safe. Shut off the appropriate water valve or call a plumber when needed.
- Document the condition. Take photographs and video before damaged materials are moved, when it is safe to do so.
- Report the loss. Follow your insurer’s instructions and ask what it needs before permanent repairs begin.
- Limit additional damage. Your policy may require reasonable temporary measures. Keep receipts and records of the work.
- Save the paperwork. Keep estimates, moisture readings, photographs, invoices and claim correspondence together.
How a restoration company supports the claim
Cleveland Water and Fire Restoration, Inc. answers 24/7, and a First Responder is typically on site within 1 hour to establish the next course of action. We assess the affected areas, measure visible and hidden moisture, develop a restoration scope and begin mitigation work once it is authorized.
If you file a claim, we document the loss and work directly with your adjuster. We do not promise coverage, interpret your policy or make claim decisions.
Review coverage before you need it
Ask your agent to review water, flood, sewer-backup, sump-pump and mold provisions before a loss occurs. Keep a current home inventory and store policy information where it is easy to reach.
This article provides general information, not legal or insurance advice. Coverage varies by policy and carrier. Ask your insurance professional about your specific policy.
