How to Make a Successful Water Leak Insurance Claim in 2023

Water leaks can be ugly and cause severe damage, leading to costly repairs and replacements. If you have experienced a water leak, you may wonder how to make a successful water leak insurance claim and get the compensation you deserve.

Let us explain the process.

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Types of Water Damage Commonly Covered by Insurance

Typically, for water damage to be covered by a typical homeowners insurance policy, it must be unexpected or accidental. Due to an unforeseen event, the impairment must have occurred at a specific time and place.

Examples of sudden and accidental water damage include:

Sudden or unintentional water discharge from plumbing, heating, air conditioning, or fire sprinkler systems
Storm-related water damage from rain, snow, ice, or hail
Unexpected sewer backup or overflow from drains or sump pumps
Flood damage (if you have flood insurance)

In addition to covering sudden and accidental water damage, some home insurance policies will also cover resulting damages from water leaks. If sudden and unexpected water damage leads to another issue in your home, such as mold growth or electrical problems, you can also be reimbursed for fixing that problem.

However, some forms of water damage are not covered by insurance. Gradual water damage occurs slowly and over time due to regular wear and tear or lack of maintenance.

Examples of gradual water damage include:

Broken pipes due to corrosion or freezing
Mold or rotting due to humidity or leaks
Foundation seepage due to groundwater or landscaping
Roof damage due to missing or damaged shingles

To determine if you have coverage for gradual damage, you must check the specific wording in your policy. However, most insurance policies exclude regular wear and tear coverage, such as pipes deteriorating over time.

Also Read: Hidden Costs of Buying a Mobile Home – Things To Consider

How to Make a Successful Water Leak Insurance Claim? – Complete Procedure

To make a successful water leak insurance claim, you will need to follow these steps:

Get the Leak Under Control

Stop the immediate leak and prevent further damage by turning off the water source, if applicable, and removing any valuables from the affected area. You should also clean and dry what little you can, but leave the heavy-duty parts to a professional.

Gather Your Proof

You should document the damage with photos and videos of the water leak’s origin and the resulting damage, keeping any damaged items as evidence for your claim. Please list all the things that were destroyed or lost due to the water leak and their estimated value.

Inform Your Insurance Provider

You should contact your insurance provider instantly after discovering the water leak and inform them of the situation.

Hire Your Assistance

You should hire a licensed contractor or a water damage restoration company to estimate the cost of repairs. You should also hire a public adjuster or an attorney if you need help negotiating with your insurance company or if you encounter any disputes or delays with your claim.

What to Avoid When Making a Successful Water Leak Claim?

When trying to make a successful water leak claim, you should avoid these common mistakes:

Delaying the Claim

After discovering the water leak, you should file your claim as soon as possible, as waiting too long may cause more damage or invalidate your claim. You should also comply with any deadlines or requirements your insurance company sets for your claim.

Failing to Document the Damage

You should take photos and videos of the damage before and after any repairs or clean-up and keep receipts, invoices, or bills related to the water leak.

Making Permanent Repairs Before Approval

You should only make temporary or emergency repairs to prevent further damage or health hazards, and you should get support from your insurance company before making any permanent repairs or replacements. You should also avoid discarding any damaged items until your claim is settled.

Accepting the First Offer

After reviewing it carefully and comparing it with your estimate, you should only accept your insurance company’s first offer. You should also not sign any documents or release forms that may limit your rights or options for further compensation. It would help if you negotiated with your insurance company until you reach a fair and satisfactory settlement.

10 Water Damage Insurance Claim Tips

Review Your Policy

You should read it carefully and understand what it covers and excludes. You should also check your deductible, limits, and endorsements. Contact your agent for clarification if you have any questions or doubts.

Prevent Further Damage

You should take reasonable steps to stop the water leak and prevent more damage or health risks. Keep receipts of any expenses you incur for these steps, as your insurance company may reimburse them.

Document Everything

You should take photos and videos of the water leak’s source and the resulting damage and make a detailed inventory of damaged or lost items due to the water leak. You should also record your claim, such as estimates, invoices, bills, receipts, correspondence, etc.

Be Honest and Accurate

You should provide truthful and accurate information to your insurance company. You should also cooperate with their requests and inquiries and provide them with all the necessary evidence and documentation. Lying or exaggerating may result in your claim being denied or reduced.

Hire Professionals

You should hire licensed and reputable contractors or water damage restoration companies to assess the damage and provide you with written estimates of the cost of repairs. You should also hire a public adjuster or an attorney if you need help negotiating with your insurance company.

Communicate Effectively

You should communicate regularly and clearly with your insurance company and other parties involved in your claim. You should also document all your communication with them, such as phone calls, emails, letters, etc., and note down everything.

Know Your Rights

When filing a water leak insurance claim, you should know your rights and options. For example, you can choose your contractor or repair company, get a second opinion or estimate, dispute or appeal the adjuster’s assessment, etc.

Be Prepared for Inspection

You should be present by the loss adjuster during the inspection and point out any issues that you think are relevant. You should also compare the loss adjuster’s estimate with your estimate and discuss any discrepancies or disagreements.

Negotiate Wisely

Should You Pursue Legal Advice?

In most cases, you can handle a water leak insurance claim without hiring a lawyer. However, you may need legal advice or representation if:

Your company refuses your claim or offers you an unfair settlement
Your agent acts in bad faith or violates the terms of your policy
Your insurance company delays or ignores your claim
Your water damage involves third-party liability or subrogation issues
Your water damage exceeds your policy limits or involves multiple policies

If you decide to pursue legal advice, you should look for a lawyer.

What to Expect After Filing Your Water Damage Insurance Claim?

After filing your water damage insurance claim, you can expect the following steps:

After you make your claim, within 15 days of getting your written notice, the corporation must begin looking into your claim.
Your insurance agent will send a loss adjuster to inspect the damage and determine the amount of compensation that you are entitled to. The adjuster will also verify the cause and extent of the water damage and check your policy coverage and limits. You should provide them with the required documentation and evidence, such as photos, videos, receipts, invoices, etc.
Your insurance company will review the adjuster’s report, estimate, and any other information you or your contractor have provided. They will then make you an offer based on their evaluation of your claim. You should review the request carefully and compare it with your estimate and expectations.
If you agree, you can accept the offer and sign a release form that finalizes the settlement. If you still need to, you can negotiate with your insurance company until you reach a satisfactory agreement.
Your insurance company will issue a payment after you accept their offer and sign the release form. The amount may be made by check or electronic funds transfer (EFT). Depending on your preference and agreement, the payment may be made directly to you or your contractor. Depending on your policy terms and conditions, the cost may also be subject to a deductible, depreciation, or other deductions.

Frequently Asked Questions (FAQs)

Does homeowners insurance cover mold remediation?

It depends on the cause and extent of mold growth. If the mold is caused by sudden and accidental water damage covered by your policy, such as a burst pipe or a storm, then your policy may cover the cost of mold remediation as part of the resulting damage.

However, if the mold is caused by gradual water damage not covered by your policy, such as humidity or leaks, then your policy will not cover the cost of mold remediation.

How long do I have to file a water damage insurance claim?

After discovering the water leak, you should immediately file your water damage insurance claim. However, insurance companies may have different deadlines for filing claims, so you should check your policy or contact your agent for specific information.

Generally speaking, most insurance companies require you to file a claim within one year of the date of loss.

What should I do if my insurance claim is denied or I disagree with the adjuster’s assessment?

Request a written explanation from your insurance company for their decision and review it carefully
Ask for a re-inspection or a second opinion from another adjuster or an independent appraiser
Negotiate with your insurance company until you reach a fair and reasonable settlement
Seek legal advice or representation from a lawyer who specializes in water damage claims

What can I do to prevent water damage in my home?

Inspect and maintain your plumbing, heating, air conditioning, and fire sprinkler systems regularly
Replace old or worn-out pipes, valves, hoses, faucets, etc.
Install water leak detectors and alarms in areas prone to water leaks
Install sump pumps and backflow valves in basements and crawl spaces
Seal any cracks or gaps in your foundation, walls, windows, doors, etc.
Insulate any exposed pipes to prevent freezing and bursting
Keep your roof in good condition and replace any missing or damaged shingles
Trim any overhanging branches or trees that may fall on your roof or siding
Elevate your appliances and valuables above the flood level in case of a flood

Conclusion

Water leaks can cause stress and damage to your home and belongings, but you can make the recovery process more manageable and smoother by filing a successful water leak insurance claim.

How to Make a Successful Water Leak Insurance Claim in 2023

Types of Water Damage Commonly Covered by Insurance