Historic rainfall and water intrusion from king tides have left homes, condominiums, and businesses along Florida’s East Coast facing significant property damage and difficult insurance questions. From water intrusion into the first floors of homes and businesses and damaged personal property to water causing interruption in businesses and costly repairs, many property and business owners are now beginning the challenging process of assessing losses and filing insurance claims.
While cleaning up and mitigating additional damage is often the immediate priority, the actions property owners take in the days and weeks following water damage to property can impact their ability to recover under their insurance policies. Understanding available coverage, preserving evidence of damage, and properly documenting losses can help prevent disputes and strengthen a claim.
What Property Owners Should Do After Water Damage
After a water damage event, it is important to move quickly while also taking steps to protect your legal and insurance rights. Please note the repeated use of the terms “water damage” and “water intrusion” in this blog. The nomenclature you use when reporting your losses to your insurance company or companies is important because, as is true with all insurance claims, words have meaning. Some insurance policies covering businesses and homeowners contain an exclusion for flooding and, even though new reports may describe the heavy rainfall and rising tide water as “flooding,” it is more accurately described as water intrusion or water damage caused by those heavy rains or the king tides as opposed to a flood.
- Immediately Report the Loss to Your Insurers: Insurance policies often contain notice requirements and deadlines that must be met. Property owners should notify their insurance carrier as soon as possible and maintain copies of all communications, claim forms, photographs, estimates, and supporting documentation.
- Document the Damage: Before beginning extensive cleanup or disposing of damaged property, take photographs and videos of affected areas, water intrusion, structural damage, furnishings, equipment, inventory, and personal belongings. The more detailed your documentation, the easier it may be to establish the extent of your losses.
- Prevent Additional Damage: Most insurance policies require property owners to take reasonable steps to mitigate additional damage beyond the original water intrusion. This may include removing standing water, boarding or tarping exposed areas, hiring remediation professionals, and taking other emergency measures necessary to protect the property. Be sure to keep invoices, receipts, and records of all expenses incurred during the mitigation process.
- Keep the Insurance Company Apprised of Your Efforts: Complete and open communication with your insurance company about your claim, the extent of the loss, your mitigation and repair efforts and costs is important when you seek to recoup your out-of-pocket losses and obtain reimbursement for the damage caused by the water intrusion.
- Review All Potential Sources of Coverage: Many property owners are surprised to learn that multiple policies may potentially apply to a single loss event. Depending on the facts, coverage may exist under a water damage policy, a homeowners policy, a commercial property policy, a condominium master policy, windstorm coverage, or business interruption coverage. Understanding how these policies interact is often critical to maximizing recovery.
- Carefully Evaluate Settlement Offers: An initial payment from an insurance carrier may not reflect the full scope of the loss so make sure that any interim payments are noted as such; i.e., less than the full amount of the damage and NOT a full and final settlement of all claims. Repair costs can increase as hidden damage is discovered, and business interruption losses may continue long after waters recede. Property owners should fully understand the implications of settlement agreements, releases, and claim closures before accepting final payments.
How Greenspoon Marder’s Insurance Recovery Group Can Help
Insurance claims involving can often become complex. Disputes may arise regarding the cause of the damage, policy exclusions, the value of repairs, business interruption losses, or the extent of available coverage.
Greenspoon Marder’s Insurance Recovery and Counseling Group helps homeowners, condominium associations, and commercial property owners navigate the insurance claims process and pursue the compensation they are entitled to under their policies. The team regularly assists policyholders facing coverage disputes involving water, wind, and storm-related losses.
If your home, condominium, business, or commercial property sustained damage from historic rainfall or water intrusion from king tides, the Insurance Recovery and Counseling Group can help evaluate your coverage, assess your losses, and guide you through the path to recovery.
This publication is provided by Greenspoon Marder LLP is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.
