Water Damage Insurance Claim

Learn about coverage for sudden vs. gradual damage, documentation requirements, and how to maximize your settlement.

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Water Damage Coverage Challenges

Water damage claims are among the most disputed insurance claims. The key issue is almost always whether the damage was sudden and accidental (covered) or gradual and due to maintenance issues (not covered).

Sudden vs. Gradual Damage

Insurance companies scrutinize water damage claims to determine if damage was sudden (like a burst pipe) or gradual (like a slow leak). They often argue that visible water damage must have been developing for months or years, making it a maintenance issue rather than a covered event.

Hidden Damage

Water travels. A leak in one area causes damage in multiple locations, often hidden behind walls or under flooring. Insurance adjusters typically only estimate visible damage, missing thousands of dollars in hidden damage that contractors discover during repairs.

Mold Exclusions

Most policies have limited mold coverage or exclude mold entirely. If water damage leads to mold, insurance companies use this exclusion to deny or reduce claims. However, if mold results from covered water damage and you mitigated promptly, some mold remediation may be covered.

Secondary Damage

Water damage causes secondary issues like warped floors, damaged drywall, and compromised structural integrity. Insurance companies often dispute whether this secondary damage is covered or is a separate, excluded issue.

Types of Water Damage Claims

Burst Pipes

Sudden pipe failures typically covered if not due to freezing in unheated areas

Appliance Leaks

Washing machine, dishwasher, or water heater failures usually covered

Roof Leaks

Covered if caused by storm damage, not maintenance issues

Plumbing Leaks

Coverage depends on whether leak was sudden or gradual

Sewage Backup

Often excluded unless you have specific sewer backup coverage

Flood

Excluded from standard policies; requires separate flood insurance

How to Document Water Damage Claims

Proper documentation is critical for water damage claims to prove the damage was sudden and covered.

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Frequently Asked Questions

Does homeowners insurance cover all water damage?

No. Standard policies cover sudden and accidental water damage but exclude gradual leaks, floods, and often sewer backups. Coverage depends on the source and cause of water damage.

What if the insurance company says my water damage is gradual?

Challenge this determination with evidence showing the damage was sudden. Get contractor opinions, plumber reports, and document that you maintained your property properly.

Is mold from water damage covered?

Limited mold coverage may apply if mold resulted from covered water damage and you took prompt mitigation steps. Most policies have mold sub-limits of $5,000-$10,000.

Should I start water extraction before calling my insurance?

Yes. You have a duty to mitigate further damage. Document everything first, then start extraction. Emergency mitigation costs are typically covered.

What if contractors find more damage during repairs?

File a supplemental claim immediately. Document the newly discovered damage with photos and get a supplemental estimate from your contractor.