Types of Water Damage Coverage

1/12/2022 (Permalink)

Most commercial insurance policies explicitly do not cover the sort of catastrophic flood event that results from extreme rainfall, tidal waves, etc.

Water Damage Insurance: What It Is and What It Isn't

Do you know when water damage to your business is covered by your existing insurance policy? Read on to better understand how to approach damaged pipes and other plumbing problems.

1. Floods or Leaks?

While most commercial insurance policies explicitly do not cover the sort of catastrophic flood event that results from extreme rainfall, tidal waves, or overflowing rivers, many other types of water damage are still covered by default plans. For example, leaking pipes and the damage they cause to the surrounding area are usually covered. As long as all issues are correctly documented and ascertained by your adjuster, your insurer will likely pay for a qualified professional water damage restoration service to bring your property back to its original condition.

2. Burden of Maintenance

However, under most default packages, your business damage will not be insured against flooding resulting from negligence. Broadly speaking, these cases usually come down to a lack of preventative maintenance. For example, if a few damaged pipes were noticeably leaking for more than a couple of weeks, it is no longer considered an unpreventable accident. In such cases, the business owner will be liable for all damages, since the flood did not result from a sudden event.

3. Other Exceptions

Coverage for fire suppression systems, such as water-based overhead sprinklers or powder-based devices, is usually more extensive than for the basic plumbing. This is because these systems are necessary for the buildings to be compliant with fire codes and because water does not move through these pipes regularly. While it is important to maintain your fire sprinklers in Greenlake, WA, for safety and legal reasons, it is unlikely that you need an additional insurance coverage package to cover them. Mold damage resulting from moisture retained in the walls or floors is usually not covered, as this is a side effect from a more fundamental plumbing problem.

Don’t allow damaged pipes and other plumbing issues to linger and incur unnecessary costs. Prevent downtime by actively pursuing the appropriate maintenance remedies outlined above.