Frequently Asked Questions about Water, Flood Damage

FAQs About Water, Flood Damage

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Click here to expand contentClick here to collapse content  A water pipe on the second floor burst causing a flood of water throughout my home. Is this a flood loss?
No, this is defined as a water loss and would not be covered under the NFIP.
Click here to expand contentClick here to collapse content  Is water seeping through the exterior of my home and flooding the inside a flood loss?
No, unless the NFIP definition of a flood is met.
Click here to expand contentClick here to collapse content  Would the loss above be covered under my homeowner’s policy as a water loss?
Probably not as there may be exclusions for water that seeps through walls.
Click here to expand contentClick here to collapse content  If a building is damaged, is putting a blower and mopping up the water all that is necessary?
Probably not, each water loss is fact specific and needs to be looked at and managed by a trained public adjuster that represents your interests.
Click here to expand contentClick here to collapse content  If mold grows on wet walls and we have a mold exclusion or limitation are we going to be out-of-pocket for the repairs/replacement?
If the building surface was damaged by water, it is a water loss. The mold is considered a manifestation of a water loss. Remove all water damaged items which include the mold damage. We would and have argued that all water damaged building material has to be taken out because of water (which came first) and this includes the mold growing on the water damaged surface.
Click here to expand contentClick here to collapse content  What’s is generally covered under Building Property coverage?

Remember that every policy is different and must be reviewed by an experienced claims adjuster to specifically define your coverage. In general the following items would be covered:

·       The insured building and its foundation

·       The electrical and plumbing systems

·       Central air conditioning equipment, furnaces, and water heaters.

·       Refrigerators, cooking stoves, and built-in appliances such as dishwashers.

·       Permanently installed carpeting over an unfinished floor.

·       Permanently installed paneling, wallboard, bookcases, and cabinets.

·       Window blinds.

·       Detached garages (up to 10 percent of Building Property coverage). Detached buildings (other than garages) require a separate Building Property policy.

·       Debris removal.

Click here to expand contentClick here to collapse content  What’s generally covered under Personal Property coverage?

·   Personal belongings such as clothing, furniture, and electronic equipment

·   Curtains

·   Portable and window air conditioners

·   Portable microwave ovens and portable dishwashers

·   Carpets not included in building coverage (see above)

·   Clothes washers and dryers

·   Food freezers and the food in them

·   Certain valuable items such as original artwork and furs (up to $2,500)

Click here to expand contentClick here to collapse content  What is generally not covered under a policy?

·   Damage caused by moisture, mildew, or mold that could have been avoided by the property owner

·   Currency, precious metals, and valuable papers such as stock certificates.

·   Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools.

·   Living expenses such as temporary housing.

·   Financial losses caused by business interruption or loss of use of insured property.

·   Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy).

Click here to expand contentClick here to collapse content  How are flood damages generally valued?

There are 2 types of valuations: Replacement Cost Value (RCV) or Actual Cash Value (ACV)

Replacement Cost Value (RCV) represents the cost to replace that part of a building that is damaged (without depreciation). To be eligible, three conditions must be met:

1. The building must be a single-family dwelling, and

2. Be your principal residence, meaning you live there at least 80 percent of the year, and

3. Your building coverage is at least 80 percent of the full replacement cost of the building, or is the maximum available for the property under the NFIP.

Actual Cash Value (ACV) represents the Replacement Cost Value at the time of loss, less the value of its physical depreciation. Some building items such as carpeting are always adjusted on an ACV basis. For example, wall-to-wall carpeting could lose between 10–14 percent of its value each year, depending on the quality of the carpeting. This depreciation would be factored in the adjustment. Personal property is always valued at ACV.

Click here to expand contentClick here to collapse content  What is Increased Cost of Compliance (ICC) coverage?
Most NFIP policies include ICC coverage, which applies when flood damages are severe. ICC coverage provides up to $30,000 of the cost to elevate, demolish, or relocate your home. If your community declares your home "substantially damaged" or "repetitively damaged" by a flood, it will require you to bring your home up to current community standards. The total amount of your building claim and ICC claim cannot exceed the maximum limit for Building Property coverage ($250,000 for a single-family home). Having an ICC claim does not affect a Personal Property claim (up to $100,000), which is paid separately. Water damage and flood losses, can be very challenging for commercial and residential property owners alike. Please consider seeking the assistance of a trained and experienced public adjuster at Tutwiler & Associates to help you navigate the property claims challenges that are likely to arise.

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