Why Do Insurance Companies Deny Water Damage Claims? Find Out Here
Why Do Insurance Companies Deny Water Damage Claims?
Do you have an insurance policy? If so, do you know what to do in case of a water damage claim?
Water damage caused by floods, sewer overflows, burst pipes, or other natural disasters can cause extensive repairs that cost thousands of dollars. You may be trying to save money for your family and the last thing that you want is to be denied payment by your insurance company. The hardest part about filing a claim is dealing with an insurance company that knows all the ins and outs on how not to pay out claims. There are ways to get around this problem though. This article will detail the reasons why insurance companies deny claims over water damage restoration and answer important questions like: “What does my insurance actually cover?”, “What should I do when my home is damaged from water?”, “Who can I call for help if it happens to me?” and much more.
Read further to know the key reasons why Insurance companies deny water damage claims.
Water damage claims are not typically covered under a standard homeowners policy unless the cause of the damage was external, such as flooding or an overflowing sewer pipe. If you need to file a claim for water damage restoration caused by broken pipes within your home, be sure to get extra insurance coverage beyond your usual policy so that you will have protection down the road in future disasters. It isn’t only during internally originating damages when insurance companies won’t pay for water damage claims. Some companies may cite that there are no records of any prior flooding or leaks on your property or nearby. An insurance company could deny a claim if they do not find any records of any flooding or leakage problems on your property or nearby premises. When filing a claim for water restoration, be sure to check with your local city hall as well as the local building department as records could be available.
If you have a water damage restoration claim and there is no evidence of a burst pipe, leaky toilet, or flooding, your insurance company could deny the claim. According to the Insurance Information Institute, if an insurance adjuster does not see any visible sign of a flood or leakage on the walls, ceiling tiles, or flooring, then they will likely deny the claim by saying that the cause of the damage was from inside your home instead of from outside.
Without any actual proof aside from photographs and videos as well as quotes from professional inspectors and contractors indicating extensive repairs due to water damage, an insurance office may refuse to pay your claims for home water damage restoration.
When an insurance adjuster has doubts about the cause of the water damage they will investigate further to determine whether you caused the problem yourself. If for instance, you have a dishwasher that flooded your kitchen because it was not installed properly or you had a faulty valve; then they can deny your claim by citing irresponsible activity as one of the reasons why insurance companies deny claims over water damage restoration. Also, water damage claims can work against you especially if it is caused by leakage or seeping water. Insurance companies would point out that you are responsible as a homeowner for maintaining the plumbing system and having damages fixed. They would see it as negligence on your part if the water damage was caused by worsening water leak damage.
If there were problems with your home’s foundation or roofing and it is now re-occurring after possible repairs were made, then this could be another reason why an insurance company denies a claim. Again, the insurance company will point out negligence as a reason for the claim denial. It could either be on your part as a homeowner for not ensuring that the materials used are high-quality and for not checking the quality of the finished project. If the repair was done by a contractor, then they may share the liability of negligence and they can become the responsible party that will pay for the resulting water damage.
If you have photographs, videos, and quotes from professionals but fail to provide them upon request then your claim will likely be denied. The same goes for the lack of documentation about any prior damage or repairs to your home or business premises. Another reason why water damage restoration claims are denied is that there is no proof that previous damage was actually repaired in the past by a professional contractor.
This is one of the most common reasons why your water damage claim is denied. If you need to file a claim for water damage restoration and you do not have additional coverage such as flood insurance, your application will likely be denied by the underwriters due to the fact that there is no coverage for this type of loss. If you find yourself in this situation, it is highly recommended that you check out the Federal Emergency Management Agency (FEMA) website. This program provides affordable coverage that is available in every state regardless of your level of income. Also, now would be the time to review your home insurance policy and check the coverage limits and conditions if these types of damages are covered.
If you have received insurance money or a check from the insurance company for any type of damage to your property, they will typically deny any claims for water damage restoration when filing within the designated time frame. This is because they are worried about fraudulent activity and if they pay out on another claim, it will affect their profits which means everyone’s premiums will go up if this situation occurs too often.
Insurance policies may come with some restrictions when it comes time to file a claim for water damage. It’s important to be aware of these limitations both before and after a loss occurs in order to maintain a constructive working relationship with your insurance company. On the whole, the best way to handle this situation is by being proactive and contacting your agent as soon as you notice any type of water damage in or around your home or business.
Thank you for reading!