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Understanding different types of water damage and insurance coverages


Written by: Sill Public Adjusters


Understanding different types of water damage and insurance coverages

Water damage is a common problem for both businesses and high-value homes. Whether it's caused by a leaky roof, a burst pipe, or a natural disaster, water damage can have a significant impact on your property and pose health hazards to you and your family.

Understanding the different types of water damage is essential to ensure that you take the appropriate steps to mitigate the damage and restore your property.

As a property owner, it is important that you understand the different types of water damage which may or may not be covered by your insurance policy.

We have a breakdown of the different types of water damage, including the causes, signs, and mitigation strategies.

Type 1 Water Damage: Clean Water

Type 1 water damage, also known as clean water damage, may be considered the least severe. This type of water damage occurs when clean water leaks into your property, such as from a broken water supply line or faucet.

While type 1 water damage is considered clean, it can still cause significant damage to your property and pose health hazards if left untreated. Signs of type 1 water damage include wet walls, floors, ceilings, mold, or mildew growth.

To mitigate type 1 water damage, you should:

  • Turn off the water source to prevent further damage
  • Extract any standing water
  • Remove any wet materials and belongings
  • Dry out the affected areas using fans or dehumidifiers
  • Disinfect and sanitize the affected areas to prevent mold growth

Type 2 Water Damage: Grey Water

Type 2 or grey water damage occurs when water from sources such as washing machines, dishwashers, or toilet overflow leaks into your property. Grey water may contain harmful contaminants, such as bacteria or chemicals, making it potentially hazardous to your health.

Signs of type 2 water damage include a musty odor, discoloration on walls or ceilings, or the presence of black water in sinks or toilets.

To mitigate type 2 water damage, you should:

  • Turn off the water source and electricity in the affected areas to prevent electrocution
  • Wear protective gear such as gloves, masks, and boots
  • Extract any standing water
  • Remove any wet materials and belongings
  • Dry out the affected areas using fans or dehumidifiers
  • Disinfect and sanitize the affected areas thoroughly

Type 3 Water Damage: Black Water

Type 3 water damage, also known as black water damage, is the most severe type of water damage. This type of water damage occurs when sewage or floodwater enters your property. Black water is highly contaminated with harmful bacteria, viruses, and other toxins, making it a severe health hazard.

Signs of type 3 water damage include the presence of fecal matter, bacteria, or chemicals in the water. The water may also have a foul smell and a dark color.

To mitigate type 3 water damage, you should:

  • Evacuate the affected areas immediately
  • Turn off the water and electricity to the property
  • Wear protective gear such as gloves, masks, and boots
  • Contact a professional water damage restoration company immediately
  • Remove all contaminated materials and belongings
  • Disinfect and sanitize the affected areas thoroughly

Water damage can have a significant impact on your property and pose health hazards to you and your family. Understanding the different types of water damage is essential to ensure that you take the appropriate steps to mitigate the damage and restore your property.

Regardless of the type of water damage, it's essential to act quickly and seek professional help to avoid further damage and health hazards.

Understanding Insurance Coverages

While understanding the different types of water damage is essential for mitigation and restoration, it's also important to know which types of water damage are covered by insurance.

Let's take a closer look at the different types of insurance coverage for water damage, including which types of water damage may or may not be covered.

Types of Insurance Coverage

Homeowner's Insurance

Most homeowners' insurance policies cover water damage caused by sudden and accidental events, such as a burst pipe or a malfunctioning appliance. However, it's essential to review your policy to understand the extent of your coverage, as some policies may have exclusions or limitations for certain types of water damage.

For example, most homeowner's insurance policies do not cover water damage caused by flooding, which is defined as water that rises from the ground up. Flood insurance is a separate policy that can be purchased through the National Flood Insurance Program.

Commercial Property

Insurance Commercial property insurance policies typically cover water damage caused by sudden and accidental events, such as a burst pipe or a leaky roof. However, like homeowner's insurance policies, commercial property insurance policies may have exclusions or limitations for certain types of water damage.

For example, commercial property insurance policies may not cover water damage caused by flooding or water that enters the property through a sewer or drain. It's important to review your policy and understand the extent of your coverage.

Water Damage Endorsement

A water damage endorsement is an additional coverage option that can be added to a homeowner's insurance or commercial property insurance policy. This endorsement provides coverage for water damage caused by a variety of events, including sewer backups, sump pump failures, and other types of water damage that may not be covered under the base policy.

Which Types of Water Damage May or May Not Be Covered?

Covered Water Damage

Water damage caused by sudden and accidental events, such as a burst pipe or a malfunctioning appliance, is typically covered by homeowner's insurance and commercial property insurance policies. Water damage caused by a covered event should be reported to your insurance company as soon as possible to initiate the claims process.

Not Covered Water Damage

Water damage caused by flooding, water that enters the property through a sewer or drain, or negligence is typically not covered by homeowner's insurance or commercial property insurance policies. Flood insurance is a separate policy that can be purchased through the National Flood Insurance Program, and coverage for sewer or drain backups may require a separate endorsement or policy.

It's essential to review your insurance policy and understand the extent of your coverage for water damage to ensure that you're adequately protected in the event of a water damage incident.

Water damage can be a costly and devastating experience, but understanding the different types of water damage and insurance coverage options is essential for mitigation and restoration. Whether you're a homeowner or a business owner, it's important to review your insurance policy and understand the extent of your coverage to ensure that you're adequately protected in the event of a water damage incident.

The information provided here is general, so you should be sure to talk to your insurance provider to get clarification on exactly what is covered in your policy.

If you experience any type of water damage, you should know that you have the right to contact a public adjuster to get professional help to handle your insurance claim.

What is a Public Adjuster?

A public adjuster is a licensed insurance professional who works on behalf of policyholders rather than insurance companies. Public adjusters are trained to assess and document property damage and negotiate insurance claims settlements with insurance companies on behalf of the policyholder.

Benefits of Working with a Public Adjuster

Working with a public adjuster can provide several benefits when dealing with a water damage insurance claim, including:

  • Expertise: Public adjusters have specialized knowledge of the insurance claims process and can provide guidance and support throughout the claims process.
  • Documentation: Public adjusters are trained to document and assess property damage thoroughly, ensuring that all damage is accurately accounted for in the insurance claim.
  • Negotiation: Public adjusters are skilled negotiators and can negotiate with insurance companies on behalf of the policyholder to ensure a fair settlement.
  • Time-Saving: Dealing with an insurance claim can be time-consuming and stressful, but working with a public adjuster can alleviate the burden of the claims process and allow property owners to focus on other priorities.

Role of a Public Adjuster in a Water Damage Insurance Claim

The role of a public adjuster in a water damage insurance claim can vary depending on the specific circumstances of the claim. However, in general, a public adjuster's role in a water damage insurance claim may include:

  • Reviewing the insurance policy and determining coverage for the water damage claim
  • Assessing and documenting the extent of the water damage
  • Coordinating with restoration professionals to mitigate the damage
  • Communicating with the insurance company and negotiating a fair settlement on behalf of the policyholder
  • Providing guidance and support throughout the claims process

Working with a public adjuster can help ensure that you receive a fair settlement for your water damage insurance claim and alleviate the stress and burden of the claims process.

Water damage can be a costly and devastating experience for any property owner, but working with a public adjuster can provide several benefits when dealing with an insurance claim. Whether you're a homeowner or a business owner, it's important to consider working with a public adjuster to ensure that you receive a fair settlement for your water damage insurance claim and alleviate the burden of the claims process.

Sill is the leading public adjusting firm in North America. We have a team of experts that can respond to any location within hours. Contact us 24/7 by calling 844.650.7455.