Which Commercial Water Losses Are Covered by Insurance?

11/8/2020 (Permalink)

Water damage restoration in Thorncreek, CO

Which Type Of Losses Are Covered By Your Insurance Policy

There are several types of water losses that can harm a Thorncreek, CO, commercial building. Damaged pipes are particularly common. Yet there are other situations that can cause flooding, as well. It thus helps to know which types of losses are covered by your insurance policy.

Coverage Exclusions
There are three main types of water losses that are not part of a standard commercial property policy. If your damage resulted from any of the following, you may have to pay for the repairs on your own:

• Slow leak
  
• Frozen pipe
  
• Flood
  
  

Insurance companies expect business owners to maintain their property and repair leaking pipes. The insurer thus will not cover damage caused by pipes that continuously leaked for more than two weeks.
Similarly, frozen pipes are often the result of negligence by the property owner. When pipes get too cold, the water inside them freezes. The ice expands and can eventually burst through the pipes. These damaged pipes then spray water throughout the building.
This type of loss typically is not covered. However, if you take steps to prevent the pipes from freezing or bursting, the insurer could still accept your claim.
Finally, any flood or drain backup is also not covered under a commercial policy. You can purchase separate flood and sewer backup coverage.

Insurance Coverage
Your commercial insurance assists you following a sudden water loss in your property. For instance, a broken water heater or a ruptured faucet should be covered. The insurance additionally includes any accidental damage caused by fire sprinklers and suppression systems.
Because many pipes are behind ceilings and walls, emergency restoration professionals often have to tear out parts of the building to reach and repair those pipes. The cost of this service is typically part of an insurance policy.
Not all water losses are covered by insurance. If you neglect damaged pipes and they cause a major disaster, your coverage may not apply. However, your insurance should help you pay for any expenses resulting from a sudden and accidental discharge of water in your commercial property.