There are many causes of residential water claims—some of which are covered by
personal lines insurance, and others that are not. Quickly repairing water
damage can reduce the ultimate cost, but can be a problem if not performed with
the insurance adjuster’s knowledge. Restoration contractors are often necessary
and very helpful.
One of the most common residential claims is from water. Damages from water
can be as small as from a minor roof leak to a complete flooding of the
unit—with all ranges in-between. No matter the extent of damages, the cause and
source of the water is of utmost importance. In many cases, the source of the
water determines if there is coverage for the damages. This means that when
adjusting any water damage claim, the source of water has to be determined.
A very common water damage claim is damage to a ceiling. Many of these
claims are very obvious. There is clearly damage to the roof, and water has
leaked through the damaged areas. There will be other claims where there is no
evidence of damage to the roof. In this case, the source of the leak could be
at exposed nails, flashing, or valleys. If no covered peril caused the opening
that allowed the water to enter, there may or may not be coverage for the
interior damages.
Another common source of damage is water from a plumbing, heating,
air-conditioning system, or household appliance. These include burst or leaking
water heaters, burst or leaking pipes, and leaking or broken ice maker lines.
This can also include backup or overflow of tubs, toilets, or sinks, clogged
air-conditioning condensation lines, and broken lines to a washing machine.
Leaking drains and shower pans are also common sources of water. If there is
policy coverage, it usually covers the damages caused by the water but does not
pay to repair the damaged or broken water line or appliance. If a broken or
leaking water line is inside a wall or ceiling or under a slab foundation,
there may be coverage to access the water line but again no coverage to repair
the water line itself. The same is true for a leaking shower pan.
A third, and probably most devastating, type of water claim is from
flooding. Flooding is also probably the most misunderstood of the types of
water claims. The reason for the misunderstanding is that flood is not normally
covered by most insurance policies. To have flood coverage, it is usually
necessary to have special flood coverage. To purchase flood coverage also might
require living in a designated flood plain.
A good rule of thumb in trying to determine if there is coverage for water
damage is, “If the water comes down, it might be covered. If it comes up, it is
usually not covered.” The exception to this is the backup of sewers or drains.
On some policies, drain backup is covered.
Repairs
Once a coverage determination has been made, it is now necessary to
determine the cost of repairs. The quicker water damages can be addressed, the
more the costs can be mitigated. Before any repairs can be made, it is
necessary to correct the problem. A leaking roof has to be repaired, a broken
water line replaced, and flood waters need to recede.
There will be claims where repairs have been started before the adjuster
receives the loss notice. These usually involve a large amount of water. They
might entail a burst water heater or a broken water line. In these cases, a
restoration company may have begun water extraction and dehumidification. One
of the main problems with the continued presence of moisture is mold and
mildew. It is not uncommon for the adjuster to arrive at the loss location and
find the carpet has been pulled and the baseboards pulled. Fans and
dehumidifiers are brought in by the restoration company. The quicker the drying
process begins, the less likely there will be a problem with mold and mildew.
Should mold or mildew be present, the restoration cost and cost to settle the
claim can rise significantly.
Once the moisture has been removed and the property dried, final
determination of damages can be made. Damages might be as minor as sealing and
painting a water stain to as serious as replacing much of the structure and
contents. The main thing to remember when adjusting water claims is that time
is the enemy. The longer it takes the adjuster to get to the claim and the
longer the moisture is present, the more chance of increased or additional
damages.
Restoration Contractors
One of the assets of water claims is the restoration contractor. Often they
are the first to respond to the problem. Sometimes they are called by the agent
when the claim is first reported. In many instances, the restoration company is
there to perform the emergency repairs. This might include anything from
installing fans and dehumidifiers to pulling the carpet. Sometimes if the water
is confined to a small area, the carpet can be dried at the location. On more
serious situations, the carpet may need to be taken in to the company facility
for drying.
It is also very important to get furniture up and off of wet carpet. In many
cases the restoration company will put blocks under the legs of the furniture
to get it up and away from the water. Furniture will often have a metal tap at
the bottom of the legs. When this tap gets wet, it can rust and leave a stain
on the carpet. By blocking the furniture, this stain can be prevented. Blocking
also prevents the wooden legs of the furniture from absorbing the moisture and
splitting.
One of the biggest problems with wet carpet is the odor. This is normally
the result of moisture in the pad. For this reason, the restoration company
will probably remove the pad prior to drying the carpet. This eliminates the
odor problem. The wet pad can then be replaced with a new pad. Since
restoration companies are usually in the business to save carpet rather than
sell new carpet, they are a valuable asset to insurance companies.
As mentioned, a major concern in today's insurance climate is the
problem of mold and mildew. When most restoration companies deal with water
claims, every effort is made to prevent any problem with mold and mildew. Often
a mold and mildew inhibitor is applied.