From reading other articles about home insurance, it may seem like finding the right home insurance for you is the difficult part of the whole ordeal, but it is actually one of the simplest pieces of the puzzle. Navigating the claims process can be quite tricky and confusing. This is especially the case when it comes to water damage.
Having a successful water leak claim is a tough task due to some causes of water leaks or water damage not being covered while other causes are. Let’s take a look at how to navigate a water leak claim in order to have it be successful.
- Following the proper steps after water damage occurs can set you up for a successful claim and help you avoid having a denied claim, which may lead to higher rates.
- Quickness in following the proper steps and proper documentation of the damage is key to a successful claim.
- Flooding is never covered under a standard home insurance policy. Flood protection must be purchased separately for a homeowner to be covered.
Understanding water leak insurance claims
Water damage is the second most common claim filed with insurance providers after wind and hail damage. Water damage is a common occurrence to a home and a homeowner’s property. Damage due to water can truly happen anytime and isn’t always caused by extreme weather or some sort of flooding. It can be due to a burst pipe or any other number of reasons.
The first and most important thing to note is that water damage due to flooding is not covered by homeowners insurance policies. Do not try to file a water leak insurance claim if flooding is the cause of water damage in your home. The claim will be denied. The only way to be covered for damage due to flooding is to purchase a separate flood insurance policy, which is sometimes available through private insurers, but you will more likely have to go through the National Flood Insurance Program. Other common reasons a claim would be denied are:
- Negligence
- Normal wear and tear
- Gradual leak over time
While water leak insurance claims are common, they are denied quite frequently as well. Denied claims can have a negative impact on coverage under the policy moving forwards and can potentially lead to higher premium rates. More pressing than that is that the homeowner is left to foot the entire bill for damage that occurs to the home.
Water leak insurance claims are something that a homeowner should not take lightly. A homeowner should take the proper steps in an effective and efficient manner to ensure a successful claim.
Steps to filing a successful water leak insurance claim
There are a number of steps a homeowner should take in order to give themselves the best possible chance at a successful water leak insurance claim with the insurance company.
- Read through and understand your policy. A homeowner should first read through their policy to determine what specific perils they are and are not covered for. Policies differ from location to location and insurer to insurer. It is important to understand your specific situation.
- Stop the leak and get the water buildup under control. It is important to stop the leak and the subsequent damage from getting worse. The homeowner should stop the leak from getting worse as soon as possible after the damage is discovered.
- Document as much as possible. A homeowner should take as many pictures and videos from as many angles and viewpoints as possible in order to provide the insurance company with enough documentation for them to properly identify a cause of damage that is covered under the policy and a claim that should be approved.
- Contact your insurance provider as soon as possible. Maybe even contacting the insurer while you are documenting the damage can be a good route to go. The sooner you contact your insurance company after damage is discovered, the sooner the claims process can take place and the sooner you can have your claim approved. Waiting for a long period of time can negatively affect your chances of having your claim approved.
- Be ready to have a second opinion. Insurance companies will send out their own insurance adjuster to inspect the damage and determine the cause of damage as well as the extent of the damage. With the adjuster working for the insurance company, they may have the incentive to provide a lower estimate or find any reason to be able to deny a claim to protect the insurance company. Being prepared to have your own independent insurance adjuster take a look at the damage, may help you get a claim approved and be approved for a higher reimbursement amount.
- Begin repairs. After the claim is approved by the insurance company, the homeowner can then hire a repair company to begin repairing the damage. Shopping around for bids from multiple contractors can help you get the best rate as well.
Something else that may be helpful for the homeowner to do, is to talk with their attorney. An attorney may be able to help the homeowner navigate the tricky claims process and better understand what the homeowner is covered for and to what extent they are covered or go to bat for the homeowner against the insurance company.
Other helpful tips
Some other helpful tips to ensure a successful claim are:
- Regularly have the home inspected and keep records of the inspections.
- Talk with your insurance agent about additional water-related damage coverage that might be available such as sewer backup coverage.
- Keep up maintenance of the house as a whole.
Summary
Navigating a water leak insurance claim can be tricky. Not only is it a stressful time for a homeowner with damage to their home, but there are some instances when water leak claims will be denied, which can have a negative impact on the homeowners insurance situation moving forward. Following the proper steps in a timely manner and with care can lead to the best possible outcome for the homeowner.