How to Make a Water Leak Insurance Claim
Here's how to handle the insurance end of a leak
Highlights
Get all hands on deck. It's important to prioritize getting a leak under control before worrying about contacting your insurance company.
While leaks are usually covered by homeowner insurance policies, you may be on your own if damage is caused by neglect.
Documenting everything can help you to prove your case to your insurance company.
It's so important to work with licensed and insured contractors to avoid getting denied reimbursement.
While you may feel like you're up to your ankles in water when a leak happens, you don't necessarily need to be up to your ears in repair bills if you have a homeowner policy. After all, those monthly premiums you've been paying are intended to keep you covered when something goes wrong. With the average water damage restoration cost ranging from $1,307 to $5,912, getting the work covered can be a huge relief. This guide for how to make a successful water leak insurance claim can help you get your ducks in a row.
1. Get the Source of the Leak Under Control
If it's safe to do so, try to identify the source of the water flow. The easiest way to stop a leak is to turn off the water supply valve to the toilet, washing machine, water heater, dishwasher, or other household appliance or system that's responsible for the deluge. You can also shut off the main water valve to your home if you aren't sure where the individual "stop" is. If you cannot find the source of the leak, you may need to contact a local plumbing company to walk you through the steps of how to find an underground water leak.
If the leak is caused by roof damage, siding damage, a faulty door, a compromised window, or some other structural issue, you should make an effort to protect the exposed area from further damage. However, getting the leak source under control doesn't mean that you need to begin extensive repairs. The goal at this point is simply to stop the damage from getting worse. While you may actually know how to fix a leaking toilet tank, you should leave everything in place until an adjuster has been sent to investigate the scene. Ideally, the area will be clear enough for an insurance representative to come out to take a look after you activate a claim.
2. Snap Photos
Take a few minutes to document everything while the situation is still fresh. You can do this using photos and videos. In addition to documenting the direct area of damage, it's also important to photograph any objects in your home that become impacted by water. It's possible that your insurance company may provide compensation for these losses.
It's also smart to jot down all of the details that unfold while they are still fresh in your mind. If you've been diligent about updating and maintaining any of the home systems or appliances involved in the leak, retrieve paperwork and receipts that prove you've been on top of things. This information can be helpful when figuring out how to make a successful water leak insurance claim.
3. Take a Look at Your Policy
The truth is that most people haven't memorized the fine details of their homeowner policies. That's why the next step is to get a copy of your policy in front of you. Knowing exactly what's covered will prepare you for a conversation with your agent.
Most policies only cover water damage that is accidental. That means that there's no reasonable way that you could have predicted that this catastrophe or accident would happen. As a result, your homeowner policy isn't likely to cover water damage that is the result of negligence or lack of routine maintenance. That means that a current leak may not be a covered event if you've failed to update deteriorating plumbing, repair a leaky roof, or address pooling near your home's foundation that led to a leaking basement.
What is actually covered for leaks in most homeowner insurance policies? While every policy varies, some standard events are usually considered coverable. These include sudden plumbing issues, sudden appliance malfunctions, roof leaks, pipe bursts, and damage caused by vandalism.
4. Report a Claim
With knowledge regarding what your policy entails now fresh in your mind, it's time to make a claim with your insurance company. You don't want to put this off for a few days. Getting your claim process moving is going to help you get the situation repaired as quickly as possible. In addition to helping you get back to your life faster, being prompt about filing a claim can also help you speed up the clock when it comes to addressing mold development in your home that can cause long-term damage and health risks. If you're wondering how to check for mold, the earliest sign is usually a musty odor.
Most insurance companies have 24-hour hotlines that allow you to report a claim to your insurance agent at any time of the day or night. While you may not be able to speak directly with your agent if you place a call in the middle of the night, the claim details will be waiting for your agent first thing in the morning. It's important to remember that the role of your insurance agent is to act as an advocate while walking you through each step of the claims process.
5. Collect Quotes
While you may be in a rush to get your leak issue repaired, it's important to remember that getting an expert opinion is important. If possible, collect two to three quotes for repairs or remediation work. Enter your zip code above, and we’ll match you to top-rated professionals in your area who can provide a quote.
It's wise to work with a company that has experience handling insurance claims because this can help to ensure a speedy and successful claims process that isn't fraught with requests for additional paperwork, delays, and denials. Any company that tries to rush you into a decision probably isn't a good fit.
Try your best not to let panic take over when making decisions. Like all home improvement quotes, a quote for fixing damage caused by a leak should be provided in writing. You also need to verify that a company is properly licensed and insured before allowing anyone to perform work at your home. Your insurance company is unlikely to compensate you for work done by an uninsured and unlicensed contractor.
6. Negotiate the Written Offers
Negotiating with your contractor is a delicate task but one that’s well worth it in the end. In your search for licensed contractors, you’ll come across some who aren’t willing to budge on their prices. Alternatively, others may be willing to negotiate. A contractor might be interested in reducing their price if you share a more competitive offer from another company. At the end of the day, there’s a need for quality contractors, so be prepared for a contractor who’s proud of their work and firm in their pricing.
7. Be Home When the Adjuster Visits
Your insurance company will want to send an adjuster to your home to inspect the damage in person. Make sure that you're there to greet them. It's also important that you take the position that you have nothing to hide. While it can feel like you're being investigated when an adjuster begins poking around to take photographs and jot down measurements, these steps are all standard parts of the adjustment process. Your adjuster is also likely to ask you questions about the specifics of how the damage occurred.
The adjuster's main goal is to estimate the total cost of repairs. It's important for the information to be as accurate as possible because it helps to determine your payout. The adjuster is also attempting to determine if anyone is at fault due to neglect or intentional acts.
It's normal to feel nervous when an adjuster asks questions to determine if a leak was caused by human error. Keep in mind that a leak that is your fault may still be covered as long as the cause was accidental. The good news about an adjuster's investigation is that it may actually determine that the leak was caused by faulty work or materials on behalf of a contractor or manufacturer. If this is the case, you may not be forced to pay the deductible owed on the claim.
8. Review Your Settlement Offer Carefully
Once your claim has been fully submitted, your insurance company will contact you with a settlement offer. Your goal is to verify that the amount being offered is enough for you to make the repairs or updates needed to restore your home to its pre-leak condition with help from a professional water damage restoration company.
9. Contact a Lawyer if Necessary
If you don’t think your compensation is appropriate and feel overwhelmed by the thought of going back and forth to request changes to the settlement, you are 100% entitled to seek legal help. Your agent can also help you ask for small changes in the settlement terms.
10. Save All Documents for Your Records
It may amount to tons and tons of paperwork, but you need to save all of your insurance claim documents to keep a record of the claim process and its outcome. These documents will act as proof that you filed a claim and include important information, such as financial details that lay out payments made by the insurance company, reimbursements, and received settlements. You may even need these documents if you have to file another claim related to the same water leak. Keeping records of your claim isn’t a big to-do, but this small action can give you the peace of mind to know that your information is readily accessible if you need it in the future.