Water damage is the #1 source of insurance claim disputes in Florida. Unlike obvious storm damage, water damage is complex: hidden, widespread, and easily misclassified by insurers as "not covered."
Water claims are commonly underpaid or denied. This guide explains what insurance covers, what they'll try to deny, and how to maximize recovery.
What Causes Water Damage?
- Sudden burst pipes – Covered
- Plumbing failures – Usually covered
- Roof leaks from covered peril – Covered if caused by storm
- Appliance failure – Usually covered
- HVAC leaks – Usually covered
- Flooding (ground/rain seepage) – Usually NOT covered (requires flood insurance)
- Sump pump failure – Usually NOT covered
- Seepage from outside – Usually NOT covered
Coverage Vs. Denial
Covered Water Damage
Your homeowner's policy covers sudden, accidental water damage from:
- Burst or frozen pipes
- Plumbing fixture failure
- Appliance malfunction
- Roof leaks caused by covered storms
- Water backup from sewer/drain (if you have that endorsement)
NOT Covered Water Damage
Your policy excludes water damage from:
- Flooding (any water from outside your home rising to enter) – Needs separate flood insurance
- Ground seepage – Water entering from soil
- Sump pump failure – Considered maintenance
- Poor drainage – Maintenance issue
- Negligent maintenance – Windows left open, roof not maintained
The Classification Problem
Many insurance companies misclassify water damage to deny coverage. For example:
- Storm causes roof leak → water damage inside: Should be COVERED because it's from covered peril (storm). But insurers often claim the roof "wasn't maintained" to deny.
- Heavy rain seeps under sliding glass door: Insurers claim this is "flooding" (not covered) even though it's not rising water but direct entry damage.
- Burst pipe from freezing: Should be covered, but insurers deny claiming "maintenance failure" (you didn't insulate the pipe).
Common Denial Tactics
1. "It's flood damage—not covered"
Challenge: Show it wasn't rising water but direct entry from the covered peril. Get a water damage assessment distinguishing between flood and storm water entry.
2. "It's maintenance—your fault"
Challenge: Prove the water entry was sudden and unforeseeable. Get a contractor's assessment showing the loss wasn't due to poor upkeep.
3. "The damage is secondary"
Challenge: Many secondary damages (mold, structural deterioration) are covered if caused by a covered peril.
4. "You didn't report it promptly"
Challenge: Report ALL water damage immediately. Document everything.
Documentation for Water Damage
Water damage documentation must be extensive:
- Photos/video: Every wet area, water lines, structural damage
- Moisture testing: Moisture meters showing wet areas
- Equipment damage: Photos of damaged appliances, HVAC, flooring
- Contents: Itemized list of damaged possessions
- Remediation receipts: Drying, dehumidification, mold treatment
- Structural assessment: Inspector report on water entry source and damage extent
Hidden Water Damage
Water often causes damage you can't see immediately:
- Behind walls (mold growth, wood rot)
- Under flooring (subfloor deterioration)
- In attic insulation (structural impact)
- HVAC system damage
This is where insurers underpay. They settle based on visible damage and miss hidden damage that emerges weeks later. This is why you need professional assessment and should hire a PA early.
Mold Claims From Water
Water damage often leads to mold. Florida law on mold coverage is nuanced:
- Mold from covered water damage IS typically covered
- But insurers often cap mold recovery at $5,000-$10,000
- You may need separate mold coverage
If your water claim is approved but mold recovery is capped, document the mold extent and fight for full coverage.
Contents Coverage
Water damage typically destroys personal property. Your contents coverage applies:
- Furniture damaged by water
- Clothing and bedding
- Electronics
- Books and documents
Insurance pays replacement cost (new items) or actual cash value (depreciated). Fight for replacement cost.
Real Example: Misclassified Claim
A Clearwater homeowner's roof was damaged in a storm, causing interior leaks. The insurance company denied the water damage claim saying "your roof wasn't maintained."
A public adjuster hired a roofing contractor who assessed that the roof was well-maintained but the storm damage was severe. With this expert report and storm records, the claim was approved for $67,000.
Steps to Take
- Document immediately - Photos, video, measurements
- Report promptly - Same day if possible
- Hire professionals - Structural inspector, water damage company
- Get repair estimates - Multiple licensed contractors
- Preserve evidence - Keep damaged items if possible
- Hire a PA if offer is low - We can audit the claim and find missed damage
Bottom Line
Water damage claims are routinely underpaid because they're complex and partly hidden. Professional assessment and representation are essential to avoid leaving money on the table.