Property Damage

Before filing a property insurance claim, it might be worth your time to ask:

Is the root cause of this damage (hail, burst pipe, rainwater flooding in from the ground, lightning, roof deterioration and leaking, improper installation of a portion of the building) something that is covered by my insurance policy? Is it a listed exclusion?

Groundwater: Most insurance policies in SC do not cover rainwater damage as the state reserves the right to issue “flood insurance” through FEMA, which is the coverage that would apply to this type of damage. Leaking foundations, overflowing French drains, landscaping issues, water coming in under a door sill, these are all things that we typically see denied by homeowner insurance, and only covered if you purchased a separate flood insurance policy. (Most people don’t purchase a flood insurance policy, unless their home is in a flood zone and/or it is required by a lender).

Mold: Many insurance companies strictly deny mold or microbial growth, or restrict it to a certain limit, like $2,500, $5,000, $10,000. However some carriers will refuse to cover the removal or cleanup of mold, but might cover the reconstruction of any portion of the building that had to be removed. We find this to be very case-based, depending on the type of loss, how quickly you caught it, your policy specifics, and can even vary down to the adjuster at times. If you do not see mold coverage on your policy, we recommend reaching out to your carrier to see if that is anything you can add. Some do not offer it, but the other pros they have make it worth still preferring them as a carrier. You probably just need to be aware and keep a slightly higher emergency reserve, as mold-specific cleanup would be out of pocket. If you constantly inspect and maintain your home and catch mold damage very early on, it tends to be less expensive to remediate.

Sewage backup: Many carriers offer sewage backup as an endorsement or rider, and we strongly recommend reaching out to make sure you have this coverage on your policy, especially if you are on city sewer lines and/or in an older part of town, or an older home. Some policies cover this automatically, but many will only cover it if you have selected the endorsement prior to the event of the loss.

Roof Leaks: Most roof leaks are a result of wear, tear, and deterioration (sun exposure, etc). If there are not specific signs of hail or wind damage (the shingles mar and/or bend and crease in a very specific manner when either of these are present) over a significant portion of your roof, then many carriers are likely to decline claims for damage done due to a leaking roof. Most professional roofers recommend you have your roof inspected every 1-5 years, depending on the age and type of roof, to see if it needs a tune up. Most roofs need a full replacement every 10-30 years, even if no major storm damage. Insurance does not cover this replacement, if there is not obvious storm damage, so homeowners should check with their builder or most recent roofer to budget to be able to afford a roof replacement by the time it is needed.

Improper installation/faulty workmanship: Most carriers will not cover this.

If you answered "Yes" to the previous question, you might also want to ask:

Is the cost to make all covered repairs higher than my deductible? How much higher?

If your deductible is $1,000, for example, and the total cost to repair any and all damage from the claim would be, let’s say, $1,200-$1,800, then it may be better to pay the damages out of pocket and not file a claim. If, for example, you have a claim-free discount on your policy, then you would want to know how much that discount is, that you would lose, for how many years. Most claim-free discounts, if lost, take 3-5 years to earn back. In addition, many carriers must increase the rates at the next renewal once a policyholder files a claim (it’s all based off statistics), although most carriers do not have the capability to tell you how much it may or may not increase, apart from possibly knowing the amount of a claim-free discount you would also lose.

If your answer was "Yes" to both above questions, there's one last question to ask:

How long ago did the original issue begin, and am I within the time limits of my policy?

Some insurance carriers have a very specific amount of time that certain types of damage must be reported in order to still be covered. Why is this? Because if a refrigerator leak starts today, and you catch it tomorrow, the bill to dry out and repair any damage likely will be minimal. But if you do not catch it until 9 months later when you purchase a new refrigerator and have it replaced, or finally notice the mold smell, or just now see the floor bubbling further out from underneath – then the bill could be exponentially higher, and some insurance companies see this as neglect to inspect and maintain the property, which may be a requirement they had in the contract you signed with them, in order to get them to insure the property.

See what some of the major carriers we have worked with have to say about coverage and claim scenarios:

• State Farm
• Allstate
• Nationwide
• Travelers

As most insurance carriers will be sure to tell you, South Carolina is a “Right to Choose” state, and you are not obligated to use any one particular contractor to handle the repairs to your home. For mitigation or remediation, we recommend they have their IICRC certification, and that someone who will be onsite for at least some portion of the cleanup be a certificate holder.

Some things for documentation you need to be sure to gather and keep, so you can provide to your insurance company:

• Photos: Always get pictures of the damage ASAP, as soon as you notice it. We recommend closeups as well as pictures more removed from the damage, to give perspective and tell the story.
• Broken Parts: If you have someone handle a plumbing repair or replace a faulty appliance or part, try to hold onto the part in case insurance wants to inspect it later before settling the claim.
• Third Party Inspection: If you can have a third party inspect and document the damage (like a plumber, HVAC technician, or restoration company) and provide their diagnostic on the cause of loss to you in writing, that is not always needed, but can be very helpful in expediting a decision on a claim, and getting approval to start repairs.
• Mitigation: Most insurance companies require you to take measures to mitigate further damage immediately and begin cleanup, so that the state of the job does not get worse. Whomever you hire to do this work should take pre and post photos of anything they do, to submit to insurance. Water mitigation requires additional documentation that any IICRC certified professional mitigation company should be familiar with.
• Contents & Property: If you have any contents that are damaged, be sure to reach out to a professional IICRC certified contents restoration company to have them cleaned, or else documented and assessed before disposing, if they are non-salvageable. Insurance companies will want specific information on your contents before the items are thrown away, and a professional contents company should know what needs to be held onto until insurance has had the chance to assess, and should be able to provide a place to store any items out of the way of the work that is being  
• Receipts: Keep receipts of any expenses you incur related to a claim – hotel bills, meals out (if you are without a kitchen due to the loss), personal belongings you had to replace (toiletries, clothing, etc). Your adjuster will likely need these later in order to be able to reimburse for any of them.
• Utility Bills: If your water ran for an extreme amount of time due to a rupture or leak, and your bill is extremely high, often times if you can provide proof of the claim/hardship, either the utility company will work with you, or insurance can sometimes assist. On an electric bill, if it is higher due to the work and tools or equipment being used on site, if you send your adjuster a copy of the current month and of the same month the prior year, many times they can help with any increase on the bill that may have occurred.