When it comes to water damage, homeowners insurance policies can get quite murky. For Colorado residents, some water damage claims may be covered, others will not be, and rarely are policy exclusions easily understood by the insured. To that end, it becomes especially important for homeowners to review their coverage and pay attention to their homes, especially for signs of plumbing damage. Here’s why.
Reasons Plumbing Damage Claims Get Denied
Insurance companies in Colorado are quick to deny plumbing damage claims by asserting that they fall as an exclusion under the policy. Water damage is among the most nuanced provisions in homeowners’ policies, and misinterpretation can be a big source of frustration for owners.
Examples of water damage exclusions insurance policies might have include:
- Long-term water leakage or seepage – One of the most common plumbing damage exclusions is language that disavows coverage for long-term, constant or repeated leakage or seepage of water. If you have a pipe leaking and it goes on for a long time, it is not covered.
- Damage from ongoing or unresolved maintenance issues – Similarly, if maintenance has been neglected, the plumbing damage claim may be denied.
- Water/sewer backups – Damage caused by backups in municipal sewer lines or septic systems is typically not covered unless additional water backup coverage has been purchased. This exclusion comes with some grey area, however, as “sewage” and “sewer backup” can be a bit of a misnomer. People often refer to any human waste water as “sewage,” but the actual legal determination for the excluded sewage/sewer backup in some insurance policies is either a backup originating outside the property line (e.g., in the municipal sewer) or one originating in a septic system. Additionally, a break or clog in the home’s on-premises plumbing system even if it’s after a drain is also typically covered unless there’s a plumbing exclusion or limit on the policy. That means clogged toilets and clogged sewer lines that run away from the toilet or laundry and result in an accidental sewage discharge iscovered unless there’s a plumbing exclusion or limit.
- Flood damage – This one is also tricky as there are often two different things people call “flood.” The actual definition of flood as covered by National Flood Insurance Program (NFIP) policies through FEMA and federal law is “an amount of water outdoors on the ground that damages the house.” This type of flood is typically excluded from homeowner’s insurance policies.
A second way homeowners, contractors, and the general public often use the term “flood” is when they are referring to a lot of water in their house from a roof leak or plumbing leak. This type of water damage is covered by property insurance, and should not be referred to as a “flood” when speaking with your insurance company. They may respond by saying, “Oh you said you had a flood and flood isn’t covered!”
Contact Us at Kandell, Kandell & Petrie with Questions About Water Damage Claims in Colorado
Policy exclusions can make for an easy out for insurance companies, but not all plumbing damage is excluded. Pay attention to your house and become familiar with your insurance policy so you can ensure you’re protected.
If you have questions or believe your insurance provider unreasonably denied your water damage claim, contact our team at Kandell, Kandell & Petrie Law. We have more than 50 years of combined legal expertise and are here to ensure you receive the relief you deserve for your insurance claim in the greater Denver area and throughout Colorado.
