Why Some Water Damage Claims Aren’t Covered
Know the Ins & Outs of Homeowners Insurance Before You Sell It
Water damage can come from several sources, which means it can fall under different areas of coverage. Natural flooding is considered to be very different from standard water damage and is covered under separate insurance policies. When you receive a homeowner’s insurance claim, look for these things to judge the claim correctly according to the owner’s insurance policy.
Was the water damage gradual or sudden?
Homeowner’s insurance is meant to protect homeowners from sudden unexpected damage to the home. Water damage can build up for a long time before it becomes obvious to the owner, making it difficult to assess if the damage was gradual or sudden. For example, the policy holder may file a claim for a crack in a foundation, but if the crack wasn’t found and water seeps into the basement and causes damage that might not be covered because it was considered gradual. Another example would be if there is a slow faucet leak under a sink that eventually causes damage to the sink.
Sudden damage can include a pipe breaking that leads to a flood, or a tree coming through the roof of a home after falling in a storm and allowing water to enter.
Check the policy
The homeowner’s insurance policy will be the deciding factor of whether or not secondary damage is covered. Some states require insurance companies to cover secondary mold damage caused by legitimate water damage claims. Your adjusters should know the exceptions and to understand exactly what the policy covers.
Water damage vs flooding
Most homeowner’s policies cover sudden water damage except for flooding. Flooding is not covered by most homeowner’s insurance. Flood insurance is a separate requirement. The definition of flooding in insurance terms is the moment water from a natural source touches the ground. Insurance adjusters need to get a clear idea of what the water source was before adjusting an insurance claim. Don’t automatically deny a claim when you hear the word flood.
Making a judgment
When making a judgment on a homeowner’s insurance claim, ask for evidence. Ask for any home maintenance records, descriptions and photos. It’s also important to interview professionals who worked on the situation prior to your examination. Then use your experience and the policy to dictate whether or not the insurance claim is covered.
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