Consider this scenario. After a long and stressful day at work, you come home, only to find water running out from under your kitchen door. You quickly approach the door, run into the kitchen and find the source of this internal flood- a burst pipe under the kitchen sink.
Repairing and replacing the burst pipes will definitely cost a lot, but what’s worse? There has been massive damage to your kitchen appliances and cabinets. Additionally, the running water has seeped into the living room and damaged the flooring, electronics, and other structures.
Initially, you are comforted by the fact that you have your homeowners insurance. However, after contacting your insurance company to file a complaint, you are told that not all damages are shielded under your policy! Now what?
Why Burst Pipes Claims Are Ignored
Whether your insurance policy covers burst pipes depends on if you have an HO-2 policy or HO-3 policy. An HO-2 policy is simple insurance coverage that generally covers more types of damages, including burst pipes.
Conversely, an HO-3 policy is mostly referred to as an exclusion type of coverage. It typically covers everything except things named in the exclusion list. This list includes water damage caused by flooding, water seeping from the foundation, and others.
Also, the company may deny your claim if they eventually find out you are somehow responsible for the burst pipes. Furthermore, your claim may be denied if the burst is caused by a faulty appliance.
How to Make Sure That Burst Pipes Are Covered By Your Homeowners Insurance
Denial of your claim by your insurance company depends on the kind of policy you agreed to and the exclusions contained in the policy. The best way to confirm is to thoroughly review your policy. For instance, some policies will cover for the damaged pipes but not appliances and equipment destroyed by the water. Other policies might cover the appliances and household items but not the repair of the burst pipes.
How to Win a Burst Water Pipe Insurance Claim
You must keep records of the damage caused by the burst pipe. Take clear pictures of the damages caused, the running water, and the number of times you cleaned and rearranged the house. This will help show that you took proper measures to prevent such occurrences. If your insurance claim is rejected by your company despite your efforts, the next step is to get an experienced lawyer to fight your claim.
Are Toxic Mold Damages Covered?
Toxic mold often develops from water damage in homes. It develops when water gets into places that are difficult to dry. Before agreeing to an insurance policy, it is best to discuss the potential for mold development with your insurer.
How Damages Are Determined and Awarded
An adjuster is sent by the insurance company for evaluation of damages. After evaluating, the adjuster will draft a proposal that is solely based on their findings. This proposal will list out the excluded damages along with a detailed breakdown of their estimated repair costs. However, it is common for the adjuster to be inaccurate with their findings, particularly when calculating the costs of damages.
At Family Financial Insurance Group, we can help you find the right homeowners coverage for your needs. Contact us to get started today!