How To File An Insurance Claim For Water Damage

The most common cause of house insurance claims is water damage. However, many water damage claims are rejected. Unfortunately, this happens mostly because of the homeowner’s errors while filing the claim with the insurance company. It is important to learn the specific steps to file an insurance claim for water damage.

When property damage occurs, restoring it to normal requires a lot of time, effort, and money. If your home is covered by a trusted house insurance company, you can alleviate the burden on your budget to some extent. An insurance company reimburses most of the cost for repairs and helps you restore the property quickly. Thus, purchasing insurance is the best way to reduce the financial strain in case of property damage.

Let’s learn in detail what homeowners should do to file an insurance claim for water damage for a smooth claim process. Let’s begin with the Dos and Don’ts.

Table of Contents

Do:

Securing your valuables will prevent any additional damage. Board up any broken doors or tarp holes, turn off the water supply, and take your valuables to a safe and dry place.
Record all the evidence of water damage. Include any broken parts that might be the cause of the water damage.
Read all the terms and conditions of the insurance policy to know which water damage is not covered under the policy.
Prepare a detailed list of all the damaged items, mentioning their model numbers, condition, actual cost, and replacement cost.
Use experienced and reliable vendors for repairs.

Don’t:

Throw away any damaged item unless the inspection is done.
Alter the scene until after the inspection.
Repair any items on your own.
Use the insurance company listed vendors if you aren’t required to. Always use experienced and reliable vendors.

If you follow the above Dos and Don’ts, you will have a smooth claim process and settle your claim quickly with the insurance company. Having said so, let us learn how to file an insurance claim for water damage.

How to File an Insurance Claim for Water Damage

The Claim Process

Approach your agent or the insurance company and file your water damage claim.
The insurer will contact you within two days of filing the claim to explain the entire process and your responsibilities.
The investigation starts within 15 days when the insurer receives your written notice.
The decision of acceptance or rejection comes within 15 working days.
Money will be credited to your account within five working days if the claim goes through.
You will receive a written explanation if the claim is rejected.

Inspection by Adjusters

This is the second most important step after you file an insurance claim for water damage. All claim inspections are done by a professional adjuster who inspects the damage and reports to the insurance company. They also negotiate with the insurance company on your behalf to ensure a smooth and beneficial claim process.

There are three types of adjusters:

An individual salaried employee working for the insurance company.
Any claim service provider to the insurance company, like an independent contractor.
A public adjuster who charges a percentage of the claim as a fee.

Tip: Hire a public adjuster to have the best chance for insurance claim success. However, ensure the person you are working with is a licensed adjuster. You don’t want to get scammed!

Claim Settlement

If everything goes well and the insurance policy you have covered the sustained damage, the claim is settled within five working days. However, the reimbursed amount for the replacement cost policy and actual cash value coverage policies are different.

Replacement Cost Coverage: The reimbursed amount is paid to repair your home based on the current cost of construction.
Actual Cash Value Coverage: The reimbursed amount is paid for rebuilding or replacing your property.

Dealing with Mold

Insurance companies generally do not cover mold remediation when you file an insurance claim for water damage. Some companies only cover the repair costs, not getting rid of the mold itself. Remember, mold spreads fast, damaging large areas in days. The best way to tackle this problem is to remove excess water and dry household materials quickly.

Temporary Housing

Some insurance policies cover additional living expenses when your home is badly damaged and you must live outside until the restoration work is over. Check whether your policy has this coverage and also find out the details of the expenses to be reimbursed.

Water damage restoration is difficult and time-consuming. Be mindful and take extra precautions to prevent future water damage in your home. Always read all the terms and conditions mentioned in your insurance policy before you submit a claim for water damage. If you still have water damage, follow the above steps to settle your claim smoothly.