A water damage claim is usually judged on three things: the source of the water, whether the policy covers that kind of source, and the record of what was damaged and how it was dried. Standard homeowner policies typically respond to sudden, accidental discharge and typically exclude flood, gradual seepage and some backup events unless an endorsement adds them back. The policy and the insurer decide any given claim. The Colorado Division of Insurance is the state regulator to contact if a claim is denied or handled in a way a homeowner does not understand.
Key takeaways
- The source of the water usually decides how the claim is treated, so note the source at the first call and in every photograph.
- A sudden discharge from a supply line or an appliance is generally treated differently from water that came from the ground, a storm or a drain backup.
- Keep the record: photographs before cleanup, the moisture readings, a list of removed items and every invoice.
- The Colorado Division of Insurance is the state regulator and the complaint route for a denied or disputed claim.
- This page does not state any deadline, coverage limit or deductible rule. Those are in the policy and are decided by the insurer.
What does a homeowner policy usually cover for water?
In general, a homeowner policy responds to sudden and accidental water discharge inside the house and generally excludes flood, surface water, gradual leakage and wear. The exact wording of each policy is what counts.
Most homeowner policies are built around the idea of a sudden event. A pipe that bursts, a hose that fails or a water heater that releases its tank in one event is the kind of loss a standard policy is written to respond to. A leak that runs slowly for months, a foundation seep or wear and corrosion are typically treated differently, and many policies exclude them outright.
Flood and water that comes up from the ground after heavy rain are generally excluded from standard homeowner policies, and they are often handled under a separate flood policy or an endorsement. Sewer and drain backup is another area that is frequently excluded unless an endorsement is in place. Every one of these is a matter of the policy wording, and a homeowner should read the declarations page and the endorsements before a loss, not after.
Why does the source of the water matter so much?
Because the source is the first thing the insurer checks, and it is the thing the homeowner can most easily prove. The source is recorded from the first call and confirmed in the photographs and the crew's notes.
An insurer will want to know where the water came from, how long it ran and whether the homeowner stopped it as soon as it was found. Each of those questions shapes the answer. A supply line that burst in the wall tells one story, and a basement that filled from a storm tells another, and the record must show which one happened.
The homeowner should describe the source in plain words at the first call, and should repeat the same description in any form the insurer asks for. Inconsistent accounts are the easiest thing for a reviewer to question, so the record should be built from what was seen at the time.
What should be photographed and kept?
Photographs of the water, the damage and the source before anything is moved, the moisture readings, a list of the items removed and every invoice. Each of these is a piece of evidence.
Take wide photographs of each room before cleanup begins, so the room, the water and the furniture are visible together. Then take close-ups of the source, the water line, the stains and any damaged material. Note the date and time on each one, and keep the original files rather than screenshots.
Keep the damaged material until the insurer has inspected it or has said in writing that it can be discarded. Keep the readings and the drying log, the list of removed items with a rough value for each, and every invoice for the cleanup, the repair and any temporary housing. A complete file is the strongest answer to a question about a claim.
Ask the insurer for its requirements in writing. Some insurers have a checklist, and asking for one early shows what the file will need. The homeowner should not sign a document that releases the claim without reading it first.
- Photographs before cleanup, with the date and time on each
- The source of the water, written down at the first call
- The moisture readings and the drying log from each visit
- A list of removed items, with the age and a rough value for each
- Invoices for cleanup, repair, drying and any temporary housing
- Every letter, email and claim number from the insurer
What does mitigation mean, and why does the insurer care?
Mitigation is the work done to stop the water and prevent further damage, such as shutting off the source, removing standing water and drying the structure. Insurers generally expect the homeowner to take reasonable steps to limit a loss.
Mitigation is the early work, and it is the part of the loss that most affects the final damage. An insurer will often look at whether the homeowner stopped the water quickly and whether the drying was started promptly. A homeowner who acts early is in a stronger position than one who waits and watches the damage spread.
The mitigation work is generally reported to the insurer as it happens, and the insurer may send its own adjuster to inspect the loss. The cleanup record is written so that the adjuster can read it without the crew present, and it shows the steps taken and the reason for each one.
What does the adjuster usually ask?
The adjuster typically asks about the source, the timing, the photographs, the removed items, the drying and any prior damage to the same area. The questions are meant to test whether the loss fits the policy.
An adjuster may ask when the water was first noticed, who noticed it, what was done about it and whether the same area has had water before. The homeowner should answer what is known and say plainly what is not. A guess presented as a fact is harder to defend later than an honest 'I do not know'.
The adjuster will also look at the condition of the house before the loss, and at maintenance records for the systems involved. A water heater that was past its expected life or a hose that was never replaced may be part of the discussion, so a note of when the appliances were installed is worth keeping.
Where should a homeowner go if a claim is denied?
The first step is to ask the insurer for the denial in writing, with the policy language it relies on. The second is to contact the Colorado Division of Insurance, which is the state regulator and takes consumer complaints about insurers.
A written denial shows the reason for the decision, and it gives the homeowner the wording to challenge. Ask for the specific policy language, the report of any inspection and the name of the person who made the decision. Those documents are the basis of an appeal or a complaint.
The Colorado Division of Insurance takes consumer complaints about insurers, and it is the route for a homeowner who believes a claim was not handled properly. This page does not describe the process in more detail, and the homeowner should check the Division's own guidance for the current steps.
A homeowner who is considering a complaint should keep the file current and keep the insurer's correspondence in order.
How can a homeowner avoid a dispute in the first place?
By knowing the policy before the loss, documenting the house in dry weather and keeping the maintenance records that show the systems were cared for.
Read the declarations page, the endorsements and the exclusions once a year. Ask the agent to explain any term that is unclear, and write the answer down. A policy that is understood before a loss is a policy that is easier to claim under.
Take a set of photographs of the house, the basement, the appliances and the valuables in dry weather. Keep the photographs with the policy papers. A record made before any loss is the simplest evidence of what was there, and it costs little to keep up to date.
How does a homeowner tell the insurer what happened without guessing?
Describe what was seen and what was done, in order, and mark clearly anything that is not yet known.
A claim statement works best as a timeline: when the water was first noticed, what was seen at that moment, what was turned off, who was called and when the cleanup began. Each line should be something the homeowner saw or did. Where a detail is unknown, such as how long a supply line had been weeping before it was noticed, say so rather than estimating.
The statement should be kept short and consistent with the photographs. If the insurer later asks a question that the statement does not cover, the answer can be added as a dated note. Changing an earlier account without a note invites doubt, so each addition should be marked as an addition.
Frequently asked questions
Does a homeowner policy cover flood water?
Standard homeowner policies generally exclude flood, and flood coverage is often a separate policy or an endorsement. The policy wording decides, so check it before a storm.
Is a water loss from a hail storm claimed under the water policy or the wind and hail policy?
It depends on the policy and on the path of the water. Hail damage to the roof or windows is usually claimed as storm damage, and the water that entered afterward may be treated as part of that claim or as a separate question. The insurer decides, and the record should show the order of events.
Should I let the insurer's adjuster inspect before the cleanup starts?
The cleanup should not wait for a long time, because the water and the drying cannot wait. Photograph everything first, keep the removed items where the adjuster can see them and ask the adjuster to inspect as soon as it can.
Who regulates the insurer in Colorado?
The Colorado Division of Insurance, which is part of the Department of Regulatory Agencies, is the state regulator for insurers in Colorado and the place to take a complaint about a claim.
Sources
This guide is general information for El Paso County homeowners, not a substitute for an on-site inspection. Prices are estimates. See our disclaimer.