Insurance Claim Denials: Slowpokes May Have to Pay for Water Damage
Water damage and insurance coverage have always been a tricky mix. Not only is it confusing to figure out which type of water damage is covered by an insurance policy and which is not, many insurance companies have clauses requiring you to take immediate action (usually within the first 24 hours) – or else they won’t pay! Why does the insurance company require that you take immediate action? For the same reason that you would want to take immediate action if you knew you were responsible for paying: To prevent further damage and higher restoration bills. Water doesn’t care who pays the final bill. The longer it’s ignored the more damage it does. The minute you notice water damage, it’s in your best interest to get moving! What actions should you take? First and foremost you should ensure the safety of you and your family. You may need to turn off the power or even evacuate the home depending on the nature of the water damage event. For situations where it’s safe, stop the water from flowing. For example, if you have a plumbing accident such as a burst pipe, turn off the water valve so that the water no longer flows in. Use towels, mops, sponges, and other absorbent materials to remove standing water as well as remove items and furnishing at risk of getting wet. Once these initial steps have contained the damage, you can take a quick break to call your insurance company. Ideally, your spouse will be available to call the insurance company even sooner. Report the event ASAP and let your insurance company know exactly what actions you are taking. Take notes and record the time and date, who you spoke with, and what details you discussed. Take time-stamped digital photos or video of the damage as well as of you actively working to contain it. Hopefully, you will not need documentation, but should your insurance company deny your claim, you’ll have proof of your efforts to reinforce your side of the story. Next, if not before, call a water damage restoration company and schedule immediate service. Most water damage professionals are well aware of the urgency, both in terms of preventing further damage as well as in satisfying the insurance policy’s requirements of prompt action. No matter what time of the day the damage occurs or whether it’s a weekday or weekend, most water damage restoration companies are on call and ready to serve. Keep in mind that while your insurance company may recommend a water damage restoration company, most states have consumer choice insurance laws that allow you to use the restoration company of your choice. Because your insurance company may have reserved the right to deny your water damage claim based on inaction, it is crucial that you have a good water damage restoration company preselected. Do your homework beforehand and you’ll be in a better position to take action should water intrude into your home. While you may find it heavy-handed of the insurance company to place these restrictions on your policy, taking prompt action to deal with water damage is in your best interest regardless of who must pay for it.
