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Fire & Water - Cleanup & Restoration

Will My Business Insurance Cover Water Damage?

10/26/2020 (Permalink)

Computer keyboard with the words "Business Insurance" on blue key Will my business insurance cover water damage?

What Does This Type Of Policy Covers

When you own a commercial building, you’re responsible for making sure the building is safe and usable for your tenants, customers and/or clients, and for ensuring that any water damage is repaired quickly and properly. Insurance coverage can be complicated, so it’s important to understand what your policy covers.

Causes and Types of Damage
Water-related damage in commercial buildings is often caused by broken pipes, roof leaks, pipe leaks or clogged toilets, each of which can cause myriad kinds of property damage, such as:

  • wet, stained or destroyed flooring, carpet and rugs
  • damp, cracked or stained drywall
  • structural damage to walls or floor joists
  • corrosion
  • mold growth

Standard Property Coverage
Most commercial property insurance policies cover breaks and leaks that are not due to ordinary wear and tear. In most cases, insurance will pay for the initial restoration and repair, so long as the work is performed by a water remediation company that is approved by the insurance company.

Common Policy Exclusions
Water damage that could or should have been prevented by regular maintenance is almost always excluded. Examples of maintenance mistakes that could negate coverage include failing to properly maintain pipes, not discovering slow leaks within a reasonable time, and allowing gutters and downspouts to become clogged. Property owners often attempt to handle water cleanup themselves to avoid an insurance claim, but if any water remains, it could lead to mold growth or structural weakness. Most commercial insurance policies specifically exclude mold removal or other damage caused by insufficient initial cleanup.
The list of damage-causing events that are typically excluded from most commercial insurance policies is lengthy, so it’s wise to read your policy thoroughly. Locate a restoration company in Bronxville, NY, to call if water damage occurs in your building. Inadequate cleanup can lead to additional damage that insurance won’t cover, so don’t take the risk of attempting to do it yourself.

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