The Vital Role of Insurance in Water Damage Restoration - What You Need to Know

Water damage is a common problem for homeowners and business owners. It can lead to costly repairs.

If you need to make a claim, understand your policy's coverage, including deductibles, limits, and exclusions. Ensure you also have documentation of any losses, such as photos and repair estimates.

Coverage

When water damage occurs, it's essential to document the extent of the loss as thoroughly as possible. This can be done by taking pictures and videos of the affected area and damaged belongings. Taking a home inventory of all your personal property can also be helpful.

It's also essential to ensure the water's source is shut off. This can prevent additional damage and help limit the amount of cleanup required. Once the source is fixed, it's essential to protect your property from theft and move any undamaged items away from the area.

Regarding homeowners insurance, the type of water damage covered will vary by policy. For example, water damage caused by sudden and accidental causes like a burst pipe is typically covered. Still, gradual damage or the result of neglect is not usually covered. Reviewing your coverage regularly and making upgrades as necessary are always good ideas.

Deductibles

Water damage claims can be subject to different deductibles and coverage limits depending on your insurance policy. Familiarizing yourself with these details will help you budget for the cost of restoration and make informed decisions about filing an insurance claim.

Timely Pure Restore professional response helps reduce costs, mitigates long-term damage, and preserves belongings. Additionally, it aids in the prevention of the spread of dangerous fungi, bacteria, and other tiny organisms that pose a significant risk to human health. Furthermore, a professional can help you determine what items can be saved and which must be discarded. This may help you avoid unnecessary expenses and emotional distress. It can also help protect your property's value by increasing its resale value. If the insurance company denies your claim or offers less than the genuine monetary value of your property, you can engage with an attorney to reach a fair settlement. A lawyer can also guide you through tricky legal situations, including conflicts involving ill faith and guilt.

Exclusions

As with any insurance, reviewing policy language for exclusions and coverage limits is essential. For example, standard homeowners policy language excludes damage caused by flood or surface water, such as river overflow and spray. But courts have narrowly interpreted these language provisions to include water propelled by wind or mudflow.

Likewise, water damage caused by long-term leakage or gradual water intrusion may be excluded. Restoration contractors must discuss potential policy adjustments with their insurance agents.

Restoration firms should also be aware that Category 3 water loss contains grossly contaminated materials that trigger pollution and fungus/bacteria exclusions universally found in property/ liability policies. To avoid potential claims denials by insurance companies, contractors should consider purchasing customized general liability (GL) and professional liability (CPL) coverage with a fungus/bacteria/Category 3 water exclusion. These solutions have been available in the environmental insurance marketplace for over seven years.

Limits

The amount your insurer pays for lost or damaged possessions will depend on the limits specified in your insurance policy. Typically, homeowners' policies include actual cash value and replacement cost coverage for possessions. Items with depreciated value are covered by actual cash value, while those that need to be replaced at current prices are covered by replacement cost.

Water damage can cause various difficulties, including structural and health hazards. Depending on the source, the water may include bacteria or dangerous organisms that might harm your family and pets. Proper water damage restoration helps to remove contaminated microorganisms and create a healthy living environment.

Working with a professional water damage restoration company can help reduce your loss and save you from having to file an insurance claim. They can provide expert advice about your insurance needs and help you navigate the claims and approval process. They have experience dealing with various insurance companies and policies, so they can ensure you're fairly compensated for your losses.