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When water damage strikes your home, stress levels may skyrocket. Dealing with the insurance claim process can seem overwhelming, but you’re not alone.
According to the Insurance Information Institute, water damage is the second most common cause of home insurance claims, after wind and hail damage.
While an insurance adjuster can help you with the specifics of your policy, we’ve put together some water damage insurance claim tips. They can help you understand the insurance claim process better and help keep the stress to a minimum if the unthinkable does happen.
How to File a Water Damage Insurance Claim
After further damage is prevented, it’s time to file your water damage insurance claim.
Follow the steps below:
Step 1: Review your Homeowners' or Renters' Insurance Policy
First, review your insurance policy. Your insurance company or agent can provide a copy if the original is missing or damaged.
The declarations page has essential information regarding your policy's water damage coverage, deductibles, limitations, or exclusions. It also should list any claim filing deadlines.
Step 2: Document the Damage
Take photos and/or video of the damage before any cleanup or restoration begins.
Step 3: Hire a Water Damage Restoration Company
Once the inspection is done, hire a restoration company.
Work with professionals like the team at ServiceMaster Restore for damage assessment, cleanup estimates, and restoration. A professional company can quickly perform complete water extraction and drying, pack-out services, board-up, and full mold remediation.
Note: If a plumbing issue, such as a broken water heater, causes water damage, hire a reputable plumber to handle the plumbing repairs.
Step 4: Ask for Written Estimates at Each Stage of the Process
Get written estimates for every stage, such as damage assessment, mitigation, repairs, and restoration.
These detailed estimates help you track costs. The estimates also provide documentation for your insurer, ensuring a smoother claims process. You will need to provide this information to your insurance agency.
Step 5: Gather Information
Gather the necessary information needed to file a water damage insurance claim.
This information may include, but isn't limited to:
- Date of water damage
- Location of damage
- Contact information for the property owner
- Your personal contact information, if you're not the property owner
- Cleanup and remediation estimates
- Receipts for all cleanup, repairs, and other related costs
- Receipts for lodging and meals if you had to leave your home before or during cleanup and repair
- Complete list of all damaged items and building materials
Step 6: Keep Logs of Conversations with Your Insurance Company
Keep detailed records or a log of each person you speak with at the insurance company.
This log should include the date and time of the call, the representative's name, and a brief description of your conversation. Keep a copy of every written communication with the insurance company, including a file for digital communication like emails.
What to Expect After Filing a Claim
Once you have filed your water damage claim, you will commonly be contacted within a couple of days.
A detailed process description will include your responsibilities and any documentation you must complete. Once you have completed it, your claim will be investigated. If approved, you will receive reimbursement for damaged property and direct payment to the company in charge of restoration shortly after.
What To Do Before Filing A Water Damage Insurance Claim
After informing your insurance company of the water damage to your home, you may immediately want to start a claim to get the money needed to do the repair.
However, taking a few steps beforehand is essential to ensure no further damage to your property:
- Ensure that all people inside of your home are safe and accounted for
- Turn off the water from the source or the main supply to avoid further damage
- Take your surviving valuables away from the affected area
- Board up doors or windows to prevent more water from entering
- Remove standing water (if safe)
- Dry the affected area to the best of your ability
- Take photos/video of the damage
Even if the damage seems minor, you may need the services of a trusted water mitigation company such as ServiceMaster Restore to prevent further damage from affecting your home.
Our experts will be available to remove water, tarp up holes in your roof, or take other precautions to ensure further damage does not occur.
What Not To Do While Filing A Water Damage Insurance Claim
When dealing with a high-stress situation, you may find yourself following advice from well-meaning friends or family. Unfortunately, some recommendations may not help your claim, and could lead to future problems.
These include:
Throwing Damaged Items Away
During the inspection, the insurance company will need to analyze the evidence of your water damage claim.
You may have the desire to throw away damaged items. If you do throw away these items, you may not be compensated for those items during your claims process.
Only throw away damaged items after being authorized by the insurance company in writing.
Making Repairs Before You Have the Approval
During the inspection, your insurance company will note the repairs needed and the estimated cost.
If you begin repairs without prior approval, you risk not having the repairs covered. Larger damage will often require more time, so patience is needed to ensure that you get covered for the full cost of repairing any damage fully and properly.
Use Restoration Companies Suggested by the Insurance Company
Your insurance company will often provide a list of vendors they work with. Using the first restoration company you see on the list may be tempting. It’s important to research and find a company that you feel is best equipped for the job, has extensive experience, and is reliable.
Restoration contractors who work with the insurance adjuster may have deals that may not represent your best interests. By taking the additional time to research, you’ll ensure that the job gets done right the first time and in a timely fashion.
Water Damage Commonly Covered By Home Insurance
Homeowner's insurance policies can be tricky to navigate regarding water damage.
Coverage often includes sudden events like burst pipes or storm damage. However, coverage may exclude leaks from poorly maintained plumbing and groundwater seepage.
Understand your specific policy and consider additional coverage like flood insurance. If you’re dealing with flood damage at home, learn more about the flood insurance claims process.
Check out our comprehensive guide to water damage and insurance for a deeper look at what your policy covers (and what it doesn't).
Why Was A Water Damage Claim Denied?
Understanding why water damage claims are sometimes denied can help avoid potential pitfalls.
Here are some common reasons for claim denials:
- Negligence. If the insurance company determines that the water damage resulted from negligence, they may deny your claim.
- Policy Exclusions. Most insurance policies have specific exclusions for certain types of water damage. Standard exclusions include flood damage, gradual leaks, and damage caused by poor maintenance. It's crucial to review your policy and understand its limitations carefully.
- Unapproved Repairs. Starting repairs before your insurance company has inspected the damage and approved your claim can lead to a denial. Always wait for their assessment and authorization before commencing any repairs.
- Pre-existing Damage. If the water damage is found to be pre-existing or a result of a gradual issue that wasn't addressed promptly, your claim may be denied.
- Lack of Documentation. Insufficient documentation can also lead to claim denials. Thoroughly document the damage with photos, videos, and detailed descriptions.
- Poor Maintenance. Failure to perform regular home maintenance and promptly address leaks can contribute to a denial. Insurance companies may argue that the damage was preventable with proper upkeep.
- Flood Damage. Standard homeowner's insurance policies typically don't cover flood damage. If your home is in a flood-prone area, having separate flood insurance is crucial.
- Lack of Additional Coverage. You may have denied additional coverage upon signing the policy. Or, it may not have been available from your current insurance company. If the coverage you need is unavailable with your current company, you may want to find a new insurer.
If you’re still confused about why an item was not covered or think there was a misunderstanding,ask your insurance agent or a licensed professional for a review. It’s essential to understand why a claim was denied. While you may not get any further compensation for the current situation, it will make you a more informed insurance shopper and help you be better prepared for the future.
Many insurance agents, adjusters, and contractors have different roles throughout the claim process. Be sure to ask for clarification to better understand who issued the decision and why it was denied. Also, ask for a formal written decision for your records.
How To Avoid Having A Denied Water Damage Claim
While water damage claims cannot be guaranteed, here's how to ensure the likelihood of your claim being approved:
- Ensure that your homeowners' insurance policy has the coverage you need.
- Understand the policy exclusions (remember, insurers want your business - don’t be afraid to ask all questions until you feel comfortable).
- Hire a professional to inspect your home regularly to ensure no problems exist.
- Maintain your home throughout the year to avoid extensive and costly expenses.
- Keep a log of repairs done to your home in case of another disaster.
If you took proactive steps before the incident and the insurance company claims that you failed to practice regular maintenance, mitigate damages, or otherwise prevent the damage from becoming a bigger problem, ask for a review or second opinion. You will have to provide evidence, so ensure that you have the proper receipts and communications saved to back up your claims.
Need Water Damage Clean-Up? Call ServiceMaster Restore 24/7
Any type of water damage event is stressful, but the tips above should help you better understand the steps to take when filing a water damage insurance claim.
While your insurance adjuster is best able to handle specific questions about your policy and coverage, the experts at ServiceMaster Restore can help you navigate the process without headaches or hassle.
Contact your local ServiceMaster Restore to help you through the crisis. We can help you with everything from water extraction to restoring your artwork, books, and essential documents.
