Water Damage Insurance Claim Denials and How to Prevent Them

6/1/2021 (Permalink)

It's important to know how extensive your water damage coverage is in your insurance policy before a water damage event to avoid denials.

Damage caused by water is one of the most common disasters that people have to deal with. The water can come from anywhere, such as a broken pipe or an overflowing sink. When it does happen, you'll need to file a water damage insurance claim so that your homeowner's policy covers your home and belongings.

Unfortunately, many people who try this find out that their insurance company denies their claim for some reason. In this article, we'll discuss what causes denials and how you can prevent them from happening in the future!

Different Kinds of Water Damage

There are several different types of water damage, including damages from floods, sewage and water backup, heavy stormwater damage, overflow, and sudden or accidental water damage.

You can choose from a range of coverage options for homeowner's insurance, so you will want to ensure you have a policy that includes water damage.

Water Damage Home Owner Insurance Claims

Homeowner's insurance should pay for damages if a water-related incident occurs on your property.

However, to be covered in the event of such an occurrence, you will need what is known as "all-risk" coverage, which pays for any damage or loss incurred by fire, hail, explosion, and water damage. Some policies have varying levels of protection depending on whether there was contamination from hazardous substances like sewage during the flooding.

What Can Cause Homeowners Insurance Claims to Be Denied?

One reason homeowners' insurance claims may be denied is inadequate coverage because they do not have all the risk protection mentioned previously. This means that even though it is windy outside and rain has been predicted, their policy does not cover damage incurred by water.

Another reason a claim can be denied is if a policyholder did not adequately maintain their property. Suppose it becomes infested with mold or another type of fungus because they were not aware that this could also cause damage to the home when there was flooding caused by rain than sewage backup.

How Can You Prevent Homeowners Insurance Claims From Being Denied?

It's always best to invest in all risk coverage, such as flood insurance, so you are covered even if your area experiences sudden weather changes like heavy rainfall without warning. If your claim has been denied to insufficient protection, it's best to read your policy to ensure you know what kinds of water damage are covered.

There is coverage available for water leaks from pipes, roofs, toilets, and other places around the house where water could cause problems.

Gradual Water Damage

If you are experiencing gradual water damage, it's best to call a professional as soon as possible. Gradual water leaks could be coming from places like your pipes and can lead to more severe problems if they're not addressed quickly enough.

Homeowners need to know what coverage their homeowner insurance policy provides regarding flooding or other types of water damage, so there isn't any confusion when filing an insurance claim should the need arise.

Insurance companies receive many homeowner's insurance claims for gradual water damage. These often include moldy or rotting materials around the home, electrical wiring that has been damaged, leaking pipes and plumbing that has damaged the ceilings, walls, or floors, and other types of water damage that a gradual leak has caused.

Gradual water leaks are often difficult to identify and may not be discovered until the problem is quite severe, which means homeowners insurance policies should cover these unexpected expenses as per their coverage agreement with the company.

If you're worried about whether or not your homeowner's policy covers damages from flooding due to a sudden event such as an overflowing toilet, read over your plan details carefully. Read before filing any claim for this type of situation, and it will likely require additional proof for them to pay out on this type of claim.

Flooding can also happen from plumbing issues like pipes bursting apart or leaking under floors; if this happens, call a professional right away so you can have the issue repaired before you end up with extensive water damage.

Why Homeowner's Insurance Claims Get Denied

Homeowner's insurance policies cover damages from unexpected events that are not covered by any of the other types of coverage they have, such as car accidents or natural disasters. However, the company may deny your claim if you can't provide proof to back up your story since this is often required for these kinds of situations when there isn't an obvious cause, like a storm showing signs of damage on their property.

Regardless, it is always worth filing one, so you aren't left without any backup if something goes wrong and you need help paying for repairs. Suppose you live in areas prone to flooding due to heavy rains or snow melts which slowly rise over time, causing extensive water damage below floors and walls.

How You Can Prevent Your Claim From Being Denied

If you know about a flood, leak, or any other type of water damage coming your way, then try to get preventative measures in place. This can be done by installing anti-flooding devices like sump pumps and backflow prevention valves which will keep as much water away from your property before it's too late.

There are also ways that you can create an emergency plan for yourself as well as the rest of the family should such a disaster happen:

Cover all exposed electronics with plastic sheets or towels so they don't come into contact with anything.

Pack up necessary documents and important items along with food supplies - just enough for a few days, these may be needed if there is no power during this time--and store them safely and out of the way of the water.

Take any necessary medications or medical supplies and make arrangements for a place to stay.