How to Make a Successful Water Leak Insurance Claim: A 10-Step Guide
Dealing with water damage in your home due to leaks or flooding can be extremely stressful. Not only do you have to stop the flow of water before it causes structural damage, but you also have to file an insurance claim and manage repairs. Getting proper reimbursement from your homeowners insurance company may seem complicated, but this comprehensive 10-step guide breaks down exactly what to do to achieve insurance claim success even for extensive water loss.
Step 1: Immediately Stop the Water Flow to Prevent Further Damage
As soon as you notice signs of a water leak or other flooding in your home, your first step is to locate the exact source and stop additional water from coming in. This controls the spread of water damage to other areas. If it’s a burst pipe or appliance leak, turn off main water valves, unplug appliances, and do everything to mitigate the ingress. If it’s seepage from the ground or a storm, reduce exterior water pressure. Use towels, tarps, sandbags, or other barriers. This initial mitigation is critical for managing your homeowners insurance claim, as insurers expressly don’t cover “failure to protect property from further damage” exclusions.
Document where the water leak occurred with date/time stamped photos and video first before stopping the flow. Photos should clearly show standing water location, direction of spread if obvious, affected building materials, and the suspected source. If you actually captured images/footage of the initial spraying from a pipe burst or gushing leak, include that as well. This visual evidence will come in handy for your insurance claim down the road.
“I cannot stress enough how photos videos taken early in a water loss event are the key to properly documenting a claim,” says Dean Sullivan, claim director at SafeHome Insurance Agency. “Insurers need clear validation of reported causes and the extent of initial water intrusion.”
Strategies to Stop Different Water Leak Types
| Type of Leak | How to Stop/Limit Water Flow |
|---|---|
| Burst pipe | Turn off main interior valve, maybe exterior valve if accessible |
| Broken appliance like dishwasher, fridge, or HVAC | Unplug power cord to disable appliance |
| Roof leak | Place water barriers like tarps or buckets beneath leaks, cover roof patch if possible |
| Basement wall crack/seepage | Hydraulic cement patch, redirect drainage, sandbags |
| Sewer/drain back-up | Limit use of drain lines, cover external vents |
| Storm flooding | Sandbags around perimeter, clear debris from drains |
| Groundwater seepage through foundation | Sump pumps, dewatering wells around basement |
Ideally you want to stop the water source within the first hour, but major water incidents can continue for multiple hours before bringing under control. The faster you mitigate, the less overall liquid damage.
Step 2: Carefully Review Your Home Insurance Policy’s Water Damage Coverage
Once water has been contained, thoroughly review the property damage provisions in your home insurance policy. Pay particular attention to sections detailing coverages, exclusions, limitations, deductibles, and provisions for water related incidents like leaks, storms, flooding, sewer back-ups, and groundwater intrusion.
While many insurance policies cover sudden water damage from storms, melting snow, burst pipes, and appliance leaks, they exclude long term repetitive seepage and may require additional riders or endorsements for flooding, sewer/drain backflows, and sump pump overflows. If you have encounters with water damage in the past, understand exactly how your current policy treats repeat events.
Call out ambiguous language to your insurance company or agent as well. Get written clarification around confusing terms like “sudden” or “accidental” as it relates to a particular loss like a slow basement leak. You need to fully comprehend whether your damage circumstances falls within or outside your existing homeowners coverage.
Water Damage Types Potentially Requiring Supplemental Insurance
| Cause of Water Damage | Supplemental Coverage Needed |
|---|---|
| Flood | Separate flood insurance policy from FEMA |
| Sewer/Drain Back-up | Backup/overflow endorsement |
| Groundwater Seepage | Water seepage endorsement |
| Roof/Surface Water Damage | Roof leak endorsement |
Document your policy review including notes explaining your interpretation of relevant clauses. Having this will help justify filing an initial claim with your insurance company.
“Many policyholders simply assume water damage is covered because it’s accidental, then get ambushed by exclusions buried in fine print only revealed after filing a claim,” warns Ryan Jones, partner at Morrison Insurance Law. “Avoid this scenario by knowing the policy thoroughly upfront.”
Step 3: Promptly File an Insurance Claim for the Water Leak
Once you’ve stopped or contained the water flow and reviewed all applicable property damage coverages, formally report the water leak event and associated loss to your insurance company as soon as possible. Call in the loss via telephone, then follow up with written correspondence documenting date/time you reported. Include your full name, contact information, address, and insurance policy numbers for all potentially relevant policies like homeowners, flood, sewer back-up etc. Even if coverage seems borderline, err on submitting the initial loss notice and let claims adjusters make the final determination.
Provide specific known details about the date, location, cause, and nature of still evident water damage in your claim notice. Specify things like:
- Date pipe burst flooding the basement
- Sewer drain line overflow soaking bedroom carpets
- Discovery of long term wood rot and mold from leaky roof
List visible signs of water or moisture observed upon noticing the incident, like standing water, water stains on walls/ceilings, moisture readings, major flooding, or leaks still flowing. Disclose secondary damage from water like collapsed drywall, ruined wood floors, shorted appliances. etc. Taking photos to accompany the claim notice is highly recommended as well.
Getting in the claim queue quickly is imperative, as most insurers judge timeliness of reporting in accepting or denying claims. Once reported, an adjuster is formally assigned to initiate the review and water loss adjustment process. This kickstarts quicker overall response than trying to handle alone then claiming later. Calling emergency repair services beforehand is fine, but document timing and keep corresponding invoices/receipts.
”The policyholder must promptly notice us of any loss in writing including the date, cause, location, and damage details observed. Claims found misrepresented or not promptly reported may be fully denied,” states the Universal Property Insurance policy form HO-10.
Required Details to Include in a Water Damage Insurance Claim Notice
| Claim Notice Item | Example Language to Use |
|---|---|
| Homeowner name and contact info | John Smith at 123 Main St, 781-555-1234, [email protected] |
| Policy numbers | Homeowners policy HO-007 and sewer back-up rider BCK-456 attached |
| Date of observed water or moisture | April 15th, 2023 |
| Type and location of water found | 2nd floor guest bathroom – leaking from around shower stall walls soaking into bedroom carpet |
| Visible damage seen | Large moist carpet area, softened drywall, paint bubbling |
| Suspected source | Failed shower pan allowing water to penetrate walls/floor |
| Timely mitigation | Shut water off to shower and ran fans to start drying |
Bottom line, the more details included upfront, the smoother the claim investigation and approval process. Oversharing is better than the opposite.
Step 4: Hire a Reputable Professional Water Extraction/Restoration Service
For most water leaks beyond very minor contained incidents, immediately call and schedule reputable professional water mitigation and mold remediation specialists to begin property stabilzation. The fastest extraction of standing water and drying out of saturated structural materials is crucial for minimizing further mold damage and long term repairs.
Check licenses, insurance credentials, online reviews, BBB ratings, and assessments from prior water loss customers before hiring a restoration contractor. Meet onsite with the owner or project manager doing your inspection, not just a sales rep. Walk them through the affected areas and water flow observations so they understand damage scope and can deploy equipment/teams accordingly.
Good mitigation pros often work directly with insurance companies regularly and know how to properly document dry out efforts which optimizes claim evidence. They also limit mold risk which insurers may deny coverage for if pre-existing or allowed to propagate by policyholder negligence. Plus using established restoration vendors avoids DIY issues down the road.
”Even if insurancecoverage seems in doubt, getting an established mitigation vendor onboard immediately not only shows good faith efforts limiting damage, but also keeps later mold issues arguable as pre-existing,” says Ed Williams, EZ Water Damage Restoration.
Warning Signs of Unreliable Water Damage Contractors
| Contractor Issue | Risks and Results |
|---|---|
| No fixed business address | Potential scam artist who takes money then disappears |
| No proof of licensing and insurance | Subpar unreliable work with no accountability or liability coverage |
| Vague estimates and prices | Massive delays and change orders driving up costs |
| High-pressure sales tactics | Shoddy or incomplete drying and repairs |
| Demands large upfront payments | Walks away with your money before finishing |
Document all access given to repair technicians, equipment used, affected materials disposed of, drying humidity readings, and daily progress for your records. Having them write a full drying log detailing decreasing moisture content supports your claim. Get the mitigation bill and have technicians write you a letter verifying if they believe further structural repairs are necessary after drying finishes. This comes in handy for long term claim negotiations.
Step 5: Evaluate Safety and Structural Impacts to Determine if You Need Temporary Lodging
Before or while water removal is happening, thoroughly evaluate all affected areas with adjusters to determine safety and habitability impacts. Things like live exposed electrical wires, compromised load-bearing walls/floors, toxic mold presence, and slip/fall hazards may require temporary evacuation and lodging cost coverage by your insurer. Technicians looking for hidden moisture and mold also need full destructive access to wall voids which means living elsewhere temporarily.
If major remodeling or repairs slated to take weeks or months, discuss additional living expenses (ALE) with your adjuster upfront before accepting initial claim settlements. Itemize costs related to comparable accommodation, food, clothing, furniture rental, pet boarding , storage fees, etc. Push back if adjusters refuse reasonable ALE amounts despite legit hazards or say limits have been reached prematurely before repairs actually complete. Get ALE extensions in writing if delays happen.
Major Safety & Habitability Risks from Water Damage Potentially Requiring Temporary Relocation
| Safety Issue | Possible Hazard |
|---|---|
| Exposed/damaged electrical | Electrocution, shock, fire from shorts |
| Compromised structure | Collapse, falling debris |
| Toxic black mold presence | Respiratory illness |
| Friable asbestos/lead | Poisoning from disturbance |
| Standing moisture/mud | Slips, falls, impact injuries |
Having a detailed mitigation drying report from your restoration vendor indicating if occupancy is safe or not further justifies any temporary housing needs as well.
Step 6: Thoroughly Document All Physical Damage for Your Claim Evidence
While restoration crews are extracting water and drying structural materials, you need to thoroughly document all affected areas with date/time stamped photos and videos. Capture images showing standing water locations, waterlines and bubbles/stains on walls indicating previous height of flooding, close ups of damaged absorbent building materials like soaked warped wood flooring or crumbling drywall, ruined personal property like furniture, and anything related to the suspected water sources like burst pipe joints, leaky dishwasher hoses, etc.
Many insurers actually provide custom mobile claim documentation apps to conveniently submit geo-tagged images, annotate damages areas, and list affected inventory directly to the file. This streamlines transmitting visual evidence but shouldn’t replace taking your own comprehensive pictures to protect your interests. Double check that estimator scoping reports and collected photos match appropriately without discrepancies negatively impacting reimbursement.
”Photos and sampling are extremely useful for identifying pre-existing conditions in water losses versus covered damages directly resulting from the sudden event,” says Dean Sullivan, claim director at SafeHome Insurance Agency. “Inconsistent waterlines raising questions may justify invoking appraisal clauses or hiring technical experts to argue origin.”
Maintain a cumulative list of personal property noted ruined by writes, with make/model/serial noted where possible. Things often missed include clothes, kids toys, holiday decorations, and food needing disposal/replacement.
Step 7: Maintain Open Communication Channels with Your Claims Adjuster
The claims adjuster appointed by your insurer is the single most important person guiding the fate of your water leak insurance claim. After initially reporting your loss and submitting documentation, expect the adjuster to thoroughly investigate by reviewing background details then arranging a site visit to personally observe, assess, and validate visible damage claimed. Communicate availability for appointments and required access like removing drywall for inspection.
During visits, comprehensively walk adjusters through affected areas, explain what happened references documentation, share contractor recommendations, and advocate for appropriate line items needing reimbursement while still being reasonable. Building rapport and keeping dialog open prevents adversial situations down the road.
Listen to adjuster concerns about claim validity, be receptive towards requests for additional technical assessments if reasonable, and understand their general side of things as an insurer representative trying to seperate covered losses from pre-existing issues like wear/tear or long term seepage damage. Getting on same page regarding origin and scope prevents later conflicts.
Ask for a written itemized damage assessment report breaking out emergency services, water removal/drying, hazardous material mitigation like asbestos or lead, structural repairs, and personal property losses with dollar amounts for each. Compare this versus contractors estimates before signing off or cashing initial claim checks.
“Policyholders must reply promptly to reasonable insurer requests for examination under oath, access for inspection, and requests for documentation pertaining to a loss. Failure to cooperate fully can jeopardize an entire claim,” says Shelby Gates, claim attorney at McKenzie & McKenzie.
Top Tips for Communicating with Insurance Claims Adjusters
| Action | Result |
|---|---|
| Share documentation freely | Builds trust and claim validity |
| Be fully transparent about damage details | Prevents perception of hiding pre-existing faults |
| Grant reasonable physical access for inspection | Allows directly observing claimed damage |
| Reply promptly to information requests | Keeps claim process moving smoothly |
| Ask questions for clarification | Prevents incorrect assumptions |
The better your relationship with the appointed adjuster, the easier achieving a satisfactory claim result becomes.
Step 8: Get Multiple Repair Quotes from Established Local Water Damage Contractors
Unless you have very minor isolated damage making fixes DIY straightforward, get written repair quotes from at least three well-reviewed local contractors specializing in water damage repair projects. Search sites like HomeAdvisor for top names, then vet licenses, insurance, years in business. Confirm they have managed major restoration claims on behalf of insurers previously as that signifies quality reputable work.
Ideally your mitigation/restoration vendor from Step 3 can handle repairs too if properly equipped. Having one point contractor simplifies communication and billing. Make sure estimate scope matches damages assessed by insurance adjusters earlier so missing items don’t jeopardize reimbursement. Get all quotes over the same standard itemization for easier comparison.
Common repairs needing quotes after serious water incidents range from structural things like:
- Tearing out and replacing drywall
- Mold remediation
- Structural drying
- Flooring/subfloor replacement
- Roof replacement
To property replacements like:
- Furniture
- Clothes
- Electronics
- Appliances
Discuss variances in cost estimates between contractors to understand why, and average for a reasonable claim demand. Quotes too drastically above or below the norm signifies issues.
Step 9: Negotiate Home Insurance Settlements for Maximum Reimbursement
For major complex water losses exceeding several thousand dollars, don’t blindly accept initial claim settlement checks as full claim resolution if inadequate to complete actual fixes. Research similar successful negotiated claims and costs, know your policy rights, and be firm calling out shortcomings compared to contractors estimates and core coverages you’re entitled to.
Several tactics like calling for appraisal clauses to settle disputes on actual cash value estimates, providing comp claims showing precedent, getting legal counsel, or utilizing public insurance adjusters working on commission may help press reluctant insurers to be more reasonable. Especially crucial for underinsured homeowners thinking coverage limits were adequate until a major loss exposed otherwise.
Approach settlement talks aiming for win-win middle ground, while standing firm on certain non-negotiables. Things like paying market rates for clear covered damages, fairly applying deductibles and depreciation, providing full replacement cost value on destroyed structure and possessions are reasonable expectations.
“Inadequate settlements often happen after severe losses simply due to shellshocked policyholders not having energy to fight back and insurers taking advantage,” says Alexandra Thompson, insurance claims attorney. “Know your rights and don’t settle too early.”
Settlement Tactics Potentially Yielding More Favorable Claim Offers
| Tactic | When to Use | Expected Results |
|---|---|---|
| Call for appraisal | Disputed repair estimates | Independent umpire evaluates costs |
| Provide comparison claims | Insurer deems damage claim excessive | Shows precedent for similar reimbursements |
| Hire public adjuster | Complex losses with major disparities | Claims experts negotiate on your behalf for % |
| Retain legal counsel | Denied coverage incorrectly or claim value discrepancies exceeding $100K | Attorney drives settlement through litigation/mediation threats |
Bottom line don’t accept lowball offers without ensuring fair coverage provided for reasonably assessed and documented damages legitimately falling under your homeowners policy.
Step 10: Consider Legal Services for Denied Claims or Severely Inadequate Settlements
If claim issues escalate to outright denial of any coverage, material misrepresentation threats, or severe underpayment compared to actual water damages incurred, seeking specialist legal help may be your only recourse to contest the insurer’s assessment and force claim payment. Attorneys intimately familiar with insurance bad faith tactics could win reimbursement even if original adjusters deemed circumstances excluded.
Water leak insurance lawyers work on a contingency basis, only collecting if securing rightful payouts after expenses. So while paying hourly rates is avoided, you sacrifice 20-40% of claim amounts to legal fees and costs.
By following these 10 steps, you can take control of the insurance claim process after water damage and avoid further headaches from insufficient reimbursement. Getting the full coverage entitled to properly restore your home provides significant peace of mind during a difficult situation. Stay organized, document thoroughly, and don’t hesitate to get professional assistance for maximum claim success.