We all use water in our homes, be it in our kitchen sinks or showers. Water is essential, but it can also pose a serious risk. Water can cause extensive damage, which is why we see so many water damage insurance claims.
Having an insurance claim denied can be devastating and can leave you in an impossible position. In this guide, we have listed the five most common reasons water damage insurance claims get denied to help you avoid the same happening to you. Read on to learn more.
Policy Exclusions
Insurance policies are often long and filled with technical jargon. It can be difficult to understand the language used in these agreements and documents, and unfortunately, some people aren’t aware of the level of cover they actually have.
Water damage can come from things like leaking pipes or weather such as extreme flooding. However, not all of these scenarios are covered in insurance claims. The last thing you want is to make a claim only for it to be denied because of a policy exclusion or coverage limit.
Sit down with your policy and read through all of the documents in detail. Ensure you have a thorough and complete understanding of the level of cover you have. This means you will not waste your time making a claim that will be rejected, and it will give you the chance to take out additional cover should you be vulnerable to certain scenarios.
Pre-Existing Conditions
Another reason we see water damage insurance claims denied is because of pre-existing conditions and faults in a property.
If your property had structural deficiencies before you took out your insurance policy and you failed to report or overlooked these entirely, you could have your claim rejected if these faults eventually lead to an escape of water.
This is why it’s essential to thoroughly inspect your property. Potential issues can be nipped in the bud and addressed to prevent them from causing a more serious issue further down the line.
Poor Maintenance
As the owner of a property, it is your responsibility to maintain and care for the building. Neglect can be a leading cause of water leaks, so properly maintaining your property is vital if you want to prevent such disasters from happening.
If your property suffers an escape for water, your claim could be denied if your insurance provider deems that the leak was a direct result of negligence on your part. For example, if you fail to keep your gutters clear and this causes water overflow that damages your property, this could well be regarded as poor maintenance, and your claim could be rejected.
Another example is water damage that has accumulated gradually over time, such as from a leaking tap or pipe. Insurance providers will maintain that, with the proper maintenance, such an issue could have been prevented, and will likely reject your claim.
Improper Reporting
If there has been an escape of water in your property, following the correct reporting procedures is crucial if you want to receive a settlement.
The particulars of this process will be outlined in your insurance policy. While there may be slight differences depending on the provider you are with, there are general rules of thumb that should always be followed.
You must file your claim as promptly as possible. Delaying could put your claim in serious jeopardy. Your policy should clarify timeframes within which claims must be submitted. Reporting outside of this timeframe could reduce the total value of your settlement or even see your claim thrown out entirely.
Insufficient Evidence
When putting together water damage insurance claims, or any kind of insurance claim for that matter, collecting and presenting evidence is vital. This evidence will demonstrate the extent of the damage to your insurance provider and will offer proof that your claim is covered by your policy.
You will need to document the damage in detail. First, take lots of notes, writing down what has happened, what time it happened, the steps you took to stop the leak and the damage that has been caused.
You’re also going to need to take lots of photographs. This is the ideal way to document damage and is the most effective form of evidence. Take as many photos as you can, recording every aspect of the damage that has been caused from various angles. Make sure your photos are clear and in focus to ensure your claim is processed quickly.
Insufficient or inaccurate evidence can be a leading cause of water damage insurance claims being denied. Make sure you document the damage in detail to avoid this.
Conclusion
Escape of water in properties can be bad enough, but the situation can be made even worse by having water damage insurance claims denied. Some of the most common reasons this can happen include policy exclusions, pre-existing conditions, poor maintenance, improper reporting and insufficient evidence. Before making water damage insurance claims, speak to Priority Scotland, we can guide you through the process and help you get what you’re entitled to.