From burst water pipes to dishwasher floods, your home insurance will cover sudden and accidental water damage. This includes the cost to clean up the water as well as repair your home. However, most policies exclude damage caused by groundwater flooding and hurricane damage. Unfortunately, some water damage claims are denied because customers said the wrong thing. We cover the basics of how to avoid having your water damage claim denied.
Why Water Damage Claims Are Denied
There are three main reasons why water damage claims get denied.
1. Don’t Understand Coverage
The biggest reason claims are denied is that homeowners don’t understand their coverage. For example, floods and hurricanes are almost never covered. You should read your policy every year and ask your agent if you have questions.
If you live in a high-risk area, you may want to add additional coverage. Separate hurricane and flood insurance are available or even required in some places. However, new policies usually don’t go into effect for at least 30 days.
2. Failed to Upkeep Home
Aside from that, not keeping up your home is the next more common reason water damage claims are denied. While a roof leak is normally covered, they could deny your claim if it was clear you didn’t make necessary roofing repairs.
This is called gradual damage. Although they may have covered the issue if you caught it right away, they will deny your water damage claim since you didn’t make repairs immediately.
3. Say the Wrong Thing
This can come as a surprise, but sometimes a claim is denied because customers say the wrong thing. This is especially common with so-called budget insurance companies that offer only minimum coverage.
While your insurance company is there to help you, they often use very specific language. Using the wrong words can result in them denying your water damage claim.
How to Avoid Having Your Water Damage Claim Denied
- Review Your Policy Yearly – You should review your insurance policy at least once a year. Contact your agent if you have questions about your coverage.
- Add Additional Coverage – If you’ve had flooding in the past, live near a flood plain or are in an area prone to hurricanes, call your insurance and add the right coverage.
- Check for Leaks Regularly – Look at your plumbing, appliances, foundation and roof for leaks or damage every few months.
- Make Repairs Immediately – If you find damage, repair it right away. You should keep records of your repairs as well.
- Replace Appliances Regularly – Appliances only last so long, so try to replace them before they fail.
- Upkeep the Outside of Your Home – It’s easy to forget about the outside of your home. However, repairing or replacing your siding, roof and foundation will prevent gradual water damage.
- Document the Source and the Damage – If you do have water damage, document both the source and the damage right away. Take photos or videos whenever possible.
- Inventory Your Possessions – Keep an inventory of your possessions including the month and year purchased, the price, and the make and model. This makes itemizing your claim easier and prevents you from undervaluing your claim.
- Avoid Fraudulent Claims – Although this should go without saying, avoid filing a fraudulent claim. Your insurance adjuster will not only catch it and deny your water damage claim, but this can even result in legal charges.
- Never Try to Pad Your Claim – Again, they will catch you if you trying to pad your claim. It’s not worth having a valid water damage claim denied over a few hundred dollars in false claims.
A great way to avoid having your water damage claim denied is to call your insurance with a restoration contractor. Since they work with insurance companies all the time, they know how to talk to a claims agent.
Whether you want a second opinion or you need help right away, we have restoration contractors near you. Call 1-888-443-3110 now for a free estimate on water damage restoration services.
