What to Do If a Contractor Causes Water Damage: 5 Steps

Your dream home renovation project can quickly become a nightmare if water damage is involved. Accidents can happen even if you’ve hired a contractor with rave reviews. Left untreated, water damage can cause mold growth, attract pests, and affect your home’s structural integrity, so you must act quickly—ideally, as soon as you notice the damage. Here’s what to do if a contractor causes water damage during your home improvement project.

1. Turn Off the Water Source

The first thing to address is the cause of the damage. A water leak can cause extensive damage and lead to the growth of mold and mildew. Perhaps your contractor reattached a pipe incorrectly, and it is now leaking. Whatever the cause, turn the water off at the source to prevent further damage.

2. Keep Clean-Up to a Minimum

You might be tempted to clean up the water damage as much as you can by yourself. However, you should hold off until the insurance adjuster comes to your home to assess the damage. If you clean up before the adjuster inspects the damage, they may not be able to see the full extent, and the claim may not fully cover the repairs. Take lots of pictures of the damage either way—you’ll need them for the claim.

3. Speak to Your Contractor

Once you’ve turned the water off at the source, the next step is to call your contractor to report the issue. Most states require licensed contractors to carry liability insurance at a minimum. If your contractor performs work that causes water damage in your home, their liability insurance should pay to fix it.

However, the contractor may offer to repair the issue themselves rather than involving their insurance company. Filing an insurance claim usually results in a premium increase—and if the damage is relatively minor, it might cost less to fix than the contractor would need to pay for their deductible.

If you decide to file an insurance claim against your contractor, you must provide the insurer with the value of the damaged items, receipts, and photos to show the extent of the damage. You can file the claim yourself or leave it to your contractor.

4. Contact Your Insurance Company

Your homeowner’s insurance might also cover the water damage caused by your contractor. When you contact your insurance company, explain the situation and give them details about your contractor and their liability insurance policy. Your insurance provider will likely contact your contractor’s insurance provider directly to work together on the claim and repairs.

5. If Necessary, Hire a Lawyer

If your contractor doesn’t have insurance or denies responsibility for the water damage, you might need to enlist the help of an attorney to take them to court. If you go this route, you’ll need to provide thorough documentation to ensure your lawyer knows the extent of the damage and how much the claim is worth.

It’s always better to exhaust your options for working with your contractor before you get a lawyer involved. But unfortunately, sometimes hiring an attorney is inescapable.