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Fire & Water - Cleanup & Restoration

3 Commercial Water Damage Claims That Might Not Be Covered

1/17/2022 (Permalink)

Commercial Water damage repairs cost a lot of money for a handful of businesses in Piatt and DeWitt County.  There are several water-related damages that are exempt from standard commercial property policies. Here are a few damages that could cost business owners to pay out of pocket after water damage-related incidents.  

Flood Water Damage

Floods can be devastating to companies, and while insurance can cover some of the costs, there are some that are not recoverable. Here are four ways that flood damage will negatively impact businesses

  • Loss of Revenue
  • Business Premises Closure
  • Loss of Power and Data
  • Stock and asset losses

Flood damage is not covered by most commercial property insurance plans. As a result, business owners may want to consider purchasing commercial flood insurance to help protect their company from future flood water damage repair costs.

Damage Caused By Slow Leaks 

Most insurance policies only cover "sudden and unintentional" damage, not regular plumbing maintenance. Business owners who ignore an apparent slow leak for long periods before the water damage reaches dangerous levels can face a liability dispute, according to insurance executives.

Freezing Pipes

Many commercial water damage claims are the result of frozen water pipes. When a pipe freezes, water may slow to a trickle or not flow at all. Unfortunately, the pressure inside the pipe from expanding ice may eventually cause the pipe to burst.

Most commercial insurance policies will cover damage from a frozen pipe burst. However, if a business owner failed to protect their business, the insurance may not accept the claim. Usually, policies require that heat be maintained inside the business property. Some policies require that maintain a certain temperature. If the business owners did not take care to repair the commercial property to avoid freezing, they may not be eligible for insurance coverage. This includes water damage clean-up, water damage repairs, drying/dehumidification, water removal/water extraction, or household appliances.

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