Most homeowners insurance policies cover sudden and accidental discharge of water from a plumbing source. This is referred to as water damage. A standard homeowners policy (or a standard commercial insurance policy for business premises), will generally cover water damage resulting from a burst pipe.

Coverage usually includes:
– The cost to access the pipe, for example: tearing out a wall to locate the damaged section of the pipe
– Necessary repairs to your damaged property, for example: drying out your carpets and floor and mold mitigation (Make sure to read your policy for policy limits)
– The cost to restore the wall following repairs to the pipe
– Additional Living Expenses (ALE), if the house is uninhabitable due to the extent of the water damage

Coverage does NOT include:
– The cost to repair the damaged pipe. You will be responsible for the cost to repair or replace the broken pipes and any associated plumber costs*.

*Insurance policies vary; make sure to read your policy documents.

Exclusions

Your insurance company may deny your claim if they conclude that you are responsible for the pipe bursting. There are usually three reasons that the insurance company will deny your water damage claim resulting from a frozen pipe.

1. The pipe froze due to negligence

A simple test to determine whether you were negligent is to answer the question “Could you have prevented your pipe from freezing or bursting?”

For example, did you turn off the heat in your home during cold weather? If so, your insurance company may deny your claim for a valid reason.

2. The pipe froze due to lack of maintenance

You are expected to maintain your home in a reasonable manner.

For example, if you did not replace old or corroded pipes, or if you failed to properly insulate your pipes, your insurance claim for a frozen and burst pipe could be denied.

3. The pipe broke due to normal wear and tear

Your insurance policy most likely excludes damage caused by normal aging, or wear and tear.

For example, if the pipe burst due to corrosion, your claim will be denied.

When dealing with water damage insurance claim, we strongly recommend that you enlist a public adjuster early on. A public adjuster will be able to review your insurance policy, the damage to your property, and advise you whether the damage should be covered.

Caveat

Take note that insurance policies vary, and you MUST take the time to review your policy documents to confirm coverage. A public adjuster will be able to assist you in determining what you are and are not covered for.

Some policies also set out specific terms and conditions that you must comply with to be covered. For example:

1. You may be required to maintain a certain temperature in your home.
2. You may be required to have an alarm system that notifies you when the heat is off.
3. You may be required to shut off your water supply and drain the pipes if the heat is not maintained.

Should you suffer a loss due to your failure to fulfil these specific clauses on your policy could trigger a claim denial. Therefore, it is important to understand your policy documents and if any such clauses are included in your policy.

If you are reporting a claim to your insurer, use the term “water damage” when describing the damage caused by water that escaped the pipes. Do not use the term “flood” as it is a completely different claim event that is not usually covered by standard homeowners policies.

There are some basic measures you can take if you find that a faucet or pipe has frozen. Only perform the following steps if you have clear access to the frozen section of the pipe.

If the worst-case scenario happens and the frozen pipe bursts, turn off your water supply immediately to prevent any further damage to your property. Contact a plumber and a restoration company.

Managing a water damage claim can be difficult, confusing, and time-consuming. If you don’t know what you are doing (and most policyholders won’t since insureds rarely file insurance claims), you are prone to making a mistake that will cause your insurance company to reduce your settlement. You are also susceptible to insurance companies’ tactics to minimize your claim pay-out.

For your convenience and to achieve the best possible outcome on your claim, hire experts that understand the claim process and what’s required to achieve a satisfactory settlement. Contact JF Public Adjusters today for a FREE claim assessment and site inspection.

JF Public Adjusters will manage your claim end-to-end, and assist you in finding plumbers, contractors, builders that will do quality work on your property.