Dealing with water damage in your house can be overwhelming, but knowing how to file an insurance claim can make the process much smoother. Whether it’s from a burst pipe, a leaking roof, or an unexpected flood, taking the right steps quickly can help you win the coverage you need to repair the damage.
In this guide, we’ll give you a quick overview of how to file an insurance claim for water damage. From stopping the source of the water and determining if your policy covers the damage to documenting everything and working with your insurance adjuster, we’ll walk you through each step to ensure you maximize your claim.
Find and Stop the Source of Water
The first and most crucial step when dealing with water damage is to locate and stop the source of the water. Whether it’s a burst pipe, a broken furnace, or a leaking roof upstairs, stopping the flow of water will minimize further damage to your home. If you can’t stop the water yourself, call a plumber or emergency service immediately to help mitigate the situation.
Determine if Your Home Insurance Policy Covers the Damage
Before you fill out a claim, it’s essential to know whether your home insurance policy covers the specific type of water damage you’ve experienced. Here’s a breakdown of what is usually covered and what’s not:
Water Damage Usually Covered by Home Insurance
When it comes to water damage, your home insurance policy can be a crucial safety net, covering a range of incidents that might otherwise leave you facing hefty repair bills.
Here are instances of water damage usually covered by home insurance:
Sudden, accidental plumbing or appliance issues: If a pipe bursts or an appliance suddenly fails, causing water damage, this is typically covered.
Frozen, burst pipes: Damage from frozen pipes that burst due to cold weather is usually covered, as long as reasonable precautions were taken.
Leaking roof: Water damage from a leaking roof, often caused by storms or other unforeseen events, is generally covered.
Ice dams: Damage caused by ice dams, which prevent melting snow from draining properly, is often covered by home insurance.
Vandalism: If water damage results from an act of vandalism, your insurance policy will likely cover the repairs.
Knowing what types of water damage are typically covered by your home insurance can give you peace of mind and ensure you’re prepared for unexpected incidents.
Water Damage Not Typically Covered by Home Insurance
While home insurance can provide vital protection, it’s important to understand that not all types of water damage are covered, especially those linked to neglect or natural disasters.
Negligence: Damage resulting from a lack of maintenance or negligence, such as ignoring a known leak, is not usually covered.
Gradual damage: Slow leaks or gradual deterioration that occurs over time often fall under wear and tear, which is not covered.
Flood damage: Standard home insurance policies do not cover flood damage; you’ll need separate flood insurance for this.
Sewage backups: Damage caused by a sewage backup may require additional coverage, as it’s not typically included in standard policies.
Landslides/Earthquakes: Water damage resulting from natural disasters like landslides or earthquakes is not covered unless you have specific coverage for these events.
Understanding these exclusions is crucial for ensuring you have the right coverage in place to protect your home from potential water damage risks.
Report the Claim
Once you’ve determined that the damage is covered by your policy, it’s time to report the claim to your insurance company. Most insurers have a 24/7 claims hotline or an online portal where you can file your claim. Be prepared to provide details about the damage, including the cause, the extent of the damage, and any immediate steps you’ve taken to mitigate it.
Get Professional Water Damage Remediation
After reporting your claim, the next step is to start the cleanup process by hiring a professional water damage remediation company. Quick action is critical, as mold and mildew can begin to develop within 24-48 hours after exposure, according to FEMA. Professional remediation companies have the tools and expertise to remove water, dry affected areas, and prevent mold growth.
Note: Some restoration companies, like Rapid Restoration, can handle the entire insurance process for you, making it easier to navigate the complexities of your claim.
Document the Damage to Maximize Your Claim
In order to ensure you receive the maximum payout for your claim, it’s essential to document the damage thoroughly. Take clear, detailed photos and videos of all affected areas and damaged items. Keep records of any temporary repairs you’ve made and save receipts for expenses related to the damage. The more samples of documentation you provide, the stronger your claim will be.
Meeting Your Adjuster and Understanding your Loss Settlement
After filing your claim and beginning remediation, prepare for a claims adjuster to visit your home to assess the damage. During this visit, the adjuster will determine the cause of the damage and estimate the repair costs. It’s important to be present during the visit to answer any questions and provide additional documentation if needed.
The Two Outcomes You Can Expect After the Meeting
After meeting with your insurance adjuster, there are two possible outcomes that will determine how your water damage claim is handled.
Ruling Against You: If the adjuster believes the damage was due to negligence such as poor maintenance, they may rule against your claim.
Ruling in Your Favor: If the damage is clearly covered under your policy, such as a frozen burst pipe, the adjuster will recommend what you are paid based on their assessment.
Understanding these potential outcomes can help you better prepare for the next steps in the claims process and ensure you’re equipped to advocate for the coverage you deserve.
Loss Settlement
The loss settlement is the amount your insurance company will pay you to cover the damage. This is often based on the replacement cost value (RCV) of the damaged items, minus any depreciation holdback—the difference between the RCV and the actual cash value (ACV) of the items. Once repairs are complete, you can usually recover the depreciation by submitting proof of completed repairs.
Additionally, if your loss settlement amount is substantial, it’s important to consider the potential tax implications. In some cases, you may be able to claim a tax deduction for unreimbursed losses due to water damage, especially if they exceed a certain percentage of your adjusted gross income (AGI).
It’s advisable to consult with a tax professional when filing your tax returns to determine if your loss qualifies for a deduction and to ensure you’re maximizing your financial recovery from the damage.
Hire a Contractor for Rebuilding
Once your claim is approved and the remediation is complete, the final step is to hire a reputable contractor to rebuild and restore your home. Choose a contractor who is licensed, insured, and experienced in handling water damage repairs. Your insurance company may have a list of preferred contractors, or you can find one independently. Ensure that all work is done to code and that you’re satisfied with the final result before closing the claim.
By following these tips and seven simple steps, you can navigate the home insurance claim process for water damage with confidence and ease, ensuring that your home is restored to its pre-damage condition as quickly as possible.
About Rapid Restoration
From initial consultation to project completion, our customers are treated with a hassle-free, hands off restoration process – requiring absolutely no effort or expense on your part – with a final result that is indistinguishable from pre-disaster conditions. Whether it’s restoring your property and possessions back to brand new in a jiffy, or dealing with and billing your insurance directly for the restoration cost, your worry truly ends when you call Rapid Restoration.
We’re available 24/7 for emergencies of all sizes – so turn to our experts to quickly and reliably restore your home or business back to – or better than – its original condition.