Water damage is no joke for homeowners, especially in areas you can’t readily see. Because of that, it can be difficult to get insurance companies to pay out claims due to water damage. Here’s what you should know about water damage and improper insurance denial claims.

What causes water damage?

Water damage can come from a number of different sources. The damage itself can range from the annoying to the threatening. For example:

Leaking/burst pipes

Whether it’s due to unregulated water pressure, temperature changes or bad pipes, leaking pipes can wreak havoc on a home’s infrastructure.

Clogged gutters

Gutters that are blocked can’t drain water properly. The water can then overflow, down the sides of your home and into the foundation.

Sewage backups

Sewage can be backed up due to a few things, such as particularly bad storms or even hurricanes. 

HVAC units

You have to check your air conditioner regularly. Moisture could accumulate and breed mold or mildew if you’re not careful.

Storm Surge

When a large storm hits – even if it isn’t categorized as a hurricane – it can bring rising water. 

Homeowners should engage in regular inspections and maintenance to check for any kind of water damage or mold growth throughout their home. A common way to tell after water is found in your home is to see if your home smells like a freshly opened bag of much or potting soil. If you see any damage, it’s preferable to call your insurance company immediately. You’ll want to get the problem sorted, but you’ll also want to file a claim immediately, to avoid an improper insurance claim denial.

 

What’s an improper insurance claim denial for water damage?

Improper insurance claim denials happen when an insurance company denies your claim for invalid reasons. For water damage claims, these disputes crop up over specific policy language regarding “sudden and accidental” events created by “constant or repeated seepage or leakage over a period of weeks, months or years.” This means that many insurance companies require water damage to be the result of a “sudden and accidental” event. Put another way, it doesn’t matter when you discover the damage—it only matters when the damage happened. 

Typical insurance coverage for water damage includes:

• Burst pipes
• Wind, rain, and hail
• Water used to extinguish a fire.

Unfortunately, there are types of water damage that are typically excluded from policies, such as:

• Floods
• Water that gets into your home’s foundation
• Roof leakage
• Sewage backup

Worth noting is that “sewage” and “sewer backup” can be a bit of a misnomer because people often refer to any human waste water as “sewage.” 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 is covered unless there’s a plumbing exclusion or limit. 

When a homeowner reports a leak to their insurance company, the company will send out a plumber to assess the damages. The plumber will also ask about the timeline of the damage—if there is any discrepancy with the timing of a storm or another ‘sudden and accidental’ event, your claim may be denied. It’s important to get a second opinion from an expert that you hire yourself.

Flood protection in Florida

Florida, meanwhile, leads the nation in number of National Flood Insurance Program (NFIP) policies. Depending on what part of the state you live in, you may be classified as either high-risk, moderate-to-low-risk, or undetermined-risk. 

If you’re denied—contact an attorney 

In Florida, if your insurance claim is denied, you have the option to appeal. It’s important to review the denial letter and your insurance policy. Sometimes denials can come down to miscommunications or misinterpretations of the situation. In cases such as those, you may be able to rectify the problem by getting in contact with the insurance company.

If the problem isn’t a misinterpretation, it may be a smart idea to hire an attorney. Just a letter from an attorney can be enough for an insurance company to review the denial. If not, then litigation is an option. If your Florida property insurance water damage claim has been denied or underpaid, contact our experienced team today.