How Does Insurance Pay To Fix Water Damaged Floors

Helen Skeates
Helen Skeates
20 min read

Knowing how does insurance pay to replace water damaged floors is crucial for filing a successful insurance claim. This post will explain how to file a successful insurance claim for water damage.

How Does Water Damage Insurance Work?

You should start by filing an insurance claim. In order to file an insurance claim, you must first contact your insurance provider and gather the necessary documentation.

After that, a claims adjuster appointment is necessary. They will examine the degree of the damage to your home and the reasons for it.

This is why it is crucial to gather the necessary documentation to present to the claims adjuster. The insurance adjuster will then decide if you are entitled to compensation.

Finding a contractor to carry out the necessary repairs after your claim has been approved is your next step. Most insurance companies have their favorite doctors and hospitals. Of course, you’re free to go with a different service if you so desire.

Also, you should not expect a lump sum to cover the cost of fixing the damage caused by water. The first payment is usually an advance and not the entire amount owed.

If your possessions have been damaged by water, you may be compensated in two installments. A cheque for ALE (additional living expenses) will be issued if the damage is so severe that you can no longer reside in your home. They both point to water damage on the floor.

7 Critical Water Damage Insurance Claim Tips

Basically, if water causes damage to your home, you won’t get reimbursed until you file a claim with your insurance company and the claim is approved. The specifics of your claim will be determined by the terms of your insurance policy.

Read on to learn exactly what kinds of water damage are covered by your insurance policy.

What kind of water damages are included in the insurance coverage?

Around 350,000 homes suffer water damage every year, costing insurance providers a total of $2.5 billion. The typical payout for water damage claims is less than $7,000. Is all water damage covered by the policy? Water damage is common and damages many properties.

There is no quick response to this question. Your conventional homeowner’s insurance policy will not pay for repairs caused by neglect, flooding, or mold growth.

In this context, “gradual harm” means deterioration that takes place over time. Insurance companies do not pay for this because it is preventable.

Insurance plans do not cover damages due to neglect because they are identical to progressive degradation and both might have been avoided with proper care. Even if floods are out of your hands, they are not covered by your insurance policy.

This is due to the high price tag associated with flood cleanup and repair. In contrast, flood insurance is available separately and is a better bet if you want to protect your floors from water damage.

Furthermore, it’s possible that the water that has seeped into your house is tainted. You’ll have to spend money on disinfecting your home in addition to cleaning and repairing it.

Finally, mold is not included because it is a sign of a larger issue. It’s not the primary damage that insurance policies pay for, but rather the secondary damage.

You might be wondering what, exactly, is covered by your insurance. All of these things, and more, are covered by your basic homeowner’s insurance policy.

All of the aforementioned are examples of unexpected losses. To be clear, regular homeowner’s insurance probably won’t pay to fix the busted appliances and pipes.

What to do to strengthen your water damage claims?

However, not all insurance claims for water damage are paid. You can use the following as a guide to help support your water damage claims.

1. Know the types of water damage claims

The following are the most often reported types of water damage claims: Using this information could aid in the evaluation of water damage to your home.

First and foremost, issues with the water supply system. After deducting for the deductible, the average cost of this type of water damage is $5,092 per incident.

The second most common problem is a malfunctioning toilet. The failure of the water supply line or a toilet that is leaking could lead to this problem.

Most claims for water damage to floors involve flooding. But flood insurance is much more likely to cover this than normal homeowner’s insurance.

2. Document and compile receipts

After determining the extent of the damage and familiarizing yourself with the most typical types of water damage claims, take photos of the leaks, the ruined furniture, and the water stains to use as evidence in the event of a claim. After that, keep track of your household expenses with receipts.

Furthermore, you should consult an attorney regarding your insurance claim. If your insurance company disputes your claim, your lawyer can help.

How to Get Insurance to Pay for Water Damage

  1. Find out where the water is coming from and do everything you can to (reasonably) stop it.
  2. Make sure you know if the water damage to your home is covered by your homeowner’s insurance.
  3. Put in a claim with your insurer by dialing their number.
  4. If necessary, get help from a company that specializes in water damage restoration.
  5. Check to see if you’re safe staying home.
  6. Document the ruined location and destroyed belongings with photographs.
  7. Discuss the matter at hand with the insurance adjuster.
  8. Value at Risk (AVL) vs. Replacement Cost (RC) in a Loss Settlement.
  9. Talk to different service providers.
  10. Deal with the settlement for the fixes.
  11. Expect to have your service terminated or not renewed.

Step 1: Determine the source of the water; take steps to stop it from flowing.

If you can do so without risking injury or worse, act immediately to prevent further water from entering an unsafe area. Turning off the water supply to your home may involve turning off the main valve (which usually takes a wrench) or a separate valve, sometimes known as a “stop.” It is common practice to turn the water supply off (clockwise) at the stop valve before servicing fixtures like the dishwasher, toilet, washing machine, or icemaker. Water supply valves and their operation are discussed in greater detail below.

Consider looking into water leak detection systems and automatic shutoff valves before a catastrophic event occurs. With a minimal upfront cost, you may be eligible for a discount on your homeowner’s insurance premium for preventing a major claim.

Step 2: Determine if your water damage is covered by your home insurance policy.

In 2018, water damage was the cause of nearly a quarter of all homeowner insurance claims. Between 2014 and 2016, water damage claims in the United States exceeded those for losses due to fires and hurricanes. Can you explain these statistics for me? Unfortunately, water damage is all too common. However, a homeowner’s insurance coverage may not cover all water damage.

The basic rule is that home insurance will pay for any damage caused by water as long as it was unexpected or unintentional. Put another way, it was impossible for you to have foreseen its occurrence. Any leaks that can be traced back to improper upkeep or negligence (such a roof that hasn’t been fixed in 30 years) will NOT be covered. Unless you have a separate flood insurance policy in Massachusetts, flood water damage is also not covered.

It is well knowledge that home insurance policies will pay for water damage.

  • Accidental and unexpected breakdowns in plumbing or appliances
  • Pipes bursting from the cold
  • Roof leaking
  • Dams of ice formed as melting snow backs up over the drains.
  • Mischief-making (as the Wet Bandits did in Home Alone).

Most homeowner’s policies do NOT cover water damage.

  • Irrigation water seeping into your basement
  • Water seeping into the basement as a result of flooding or a sudden thaw (unless you have flood insurance)
  • Backup of sewage or water pipes (unless you have a sewer backup endorsement, which can be added to any homeowner’s policy in a matter of minutes).
  • Pipes that have deteriorated over time and are now leaking
  • Old, neglected roof springs leaks.
  • Water loss from broken pipes or clogged drains
  • Colonization by mold, decay, or fungi (unless it resulted from a covered cause)

Step 3: Call your insurance agent and report the claim.

Time is of the key in preventing more water damage. Mold and mildew can start growing 24-48 hours after exposure, per FEMA. As such, if you experience a pipe burst on a Friday night, you shouldn’t wait until Monday morning to notify your insurance agent. The majority of insurance companies provide support lines open around the clock to help with the claims procedure and give advice on how to clean up after an incident.

How to Stop and Repair Water Damage in Your House

Unless you have the resources and knowledge to thoroughly clean and dry the area on your own, it is probably best to get in touch with a water damage/restoration firm. Even if your insurance provider is hesitant to make a specific recommendation, they should be able to point you in the direction of numerous qualified firms in your area.

Keep in mind that if your personal insurance agent is not immediately available when a claim arises, you will need to follow up with them during regular business hours. Why? There is a significant distinction between insurance agents and insurance firms. Both of them should be aware of what’s going on in your household. Your insurance agent is there to represent your interests and ensure a prompt resolution to your claim from the insurance company. We advocate hiring an independent agent as opposed to a direct writer or “captive” agent because the former can be helpful in negotiating a settlement for any damages (see Step 6).

Step 4: Get the water and moisture professionally cleaned up.

The presence of standing water necessitates the services of a water damage/restoration business (WD/RC) to remove it and dry the area completely before mold or mildew may grow. In addition to closing and ventilation the damp area, the WD/RC may also need to use special cleaning solutions if mold is present.

Companies that deal with water damage restoration can vary greatly. There is always the risk that others would try to take advantage of you in a time of need. Get a written estimate and confirmation that the company is licensed and insured before signing any contracts or work orders. Research the firm’s web reputation. Get in touch with local customers for referrals.

Remember that the WD/RC you choose does not need to be the same company that fixes your drywall, flooring, woodwork, ceilings, cabinets, etc. once the water has been removed. There are a lot of water damage restoration firms out there, and while many of them offer contracting services in addition to water and mold removal, that doesn’t imply they’re your best option. Never commit to a contract or agree to further work without first obtaining a price and discussing the matter with at least one other contractor. When it comes to carpentry, flooring, or drywall, it’s usually advisable to hire a specialist in that field rather than a WD/RC.

Step 5: Determine if you need to leave the home.

Depending on the severity, water damage can make a home hazardous or unhealthy to live in. You shouldn’t risk your life walking through floodwaters if there’s a chance that household chemicals or sewage water have been swept into the area. There could be a danger of electrocution. Air can still be tainted by mold spores long after any existing water has evaporated.

If any of these problems sound familiar, consult your agent and your WD/RC team for guidance on how to proceed safely. When you have to evacuate your home, most insurance policies will pay for your hotel stay and meals. But you should know how much, if any, coverage you have for these things, and how you should be required to pay for and record them (pay for them yourself before getting reimbursed). Don’t forget to hang on to your receipts if you decide to stay somewhere and eat.

Step 6: Take photos of the damaged area and any damaged possessions.

While the restoration crew working on your property will most likely document the damage with photographs, it is still a good idea to take your own. (You don’t want to waste time asking this company for records if you later decide to sever connections with them.) Any items that need to be cleaned or replaced should also be photographed. The loss from water damage is not limited to the things that get wet. If mold has spread to a closet or drawer, have that professionally cleaned as well. It’s possible that you could get those costs reimbursed.

Important: Most insurance policies won’t pay to fix the leaking appliance that created the problem. If your ice maker or dishwasher springs a leak behind the cabinets, for instance, your insurance may pay to fix the damage and replace the cabinets, but it probably won’t pay for a new ice maker or dishwasher.

Step 7: Meet with your adjuster.

An insurance adjuster will visit your home as soon as possible. They will assess the situation by taking pictures and measurements of the damage. In addition, the adjuster will inquire as to the nature and timing of the incident. He has two primary objectives. To begin with, he is attempting to calculate how much it will cost to fix the damage. Second, he wants to find out who was to blame.

You might be asking yourself, “Oh no, what if it was my fault?” Have no fear. Your insurance coverage will cover losses unless they were caused by your own actions (such as insurance fraud). Accidents are what insurance is meant to cover. That includes even the most idiotic of mishaps. Even if it would be your fault to leave a candle burning overnight and have your house burn down, you would still be compensated for the loss. In the same way, the same rule applies to water damage. You are not responsible if water leaks through your ceiling because you installed your own toilet (incorrectly, by accident).

However, the insurance company will want to know if the accident was indeed someone else’s fault. Assume, for the sake of argument, that the incompetent installation of the aforementioned toilet wasn’t your fault but rather that of a professional plumber. In that instance, your insurance company’s adjuster and/or insurance company may “subrogate,” or seek compensation from, his insurance company for the harm he caused. It’s the same with a broken item. If your washing machine breaks down, your insurer may sue the manufacturer for your damages. This is great news since it means they may be able to subrogate the claim and you will not be responsible for paying the deductible.

Step 8: Understand your loss settlement: ACV vs. replacement cost.

Your adjuster will evaluate the damage and provide a written estimate of how much he thinks it should cost to fix the problem. Most likely, he will make a detailed inventory of labor and material costs (drywall, paint, insulation mortar, tile, etc.). To help get the repairs underway, he may also issue a check for all or part of this sum, depending on the extent of the claim. Yay!

Get ready to feel dubious about that settlement amount. Your estimate is probably based on an actual cash value, or ACV, rather than a replacement cost value, unless your house insurance policy was specifically intended to provide replacement cost value. Unlike the purchase price or the cost to rebuild it from the ground up, ACV takes into account depreciation over time and market conditions to determine the true value of your property. If you spent $20,000 on new cabinets 15 years ago, for instance, your loss compensation would account for $20,000 less the depreciation. Learn more about ACV and replacement costs here.

Here’s a snag, though… Depreciation holdbacks are a feature offered by some insurance companies. This means that the depreciation amount will be refunded to you once you have shown sufficient evidence that all of the repair funds they provided were spent and that your deductible was paid. To prove that you have paid the various parties, you will need to send them either bank statements or canceled checks.

What rationale may there be for insurance companies to handle claims in this manner? The reason for this is due in part to the fact that they want to make sure the funds are being used properly. There have been multiple cases of homeowners accepting settlements for water damage and then disappearing to Las Vegas without ever returning to fix the problem. Or, perhaps they’ve used the entire settlement to make a major improvement to their home, such as switching out the linoleum flooring with Brazilian hardwood. The adjuster’s role is to help ensure that the repair is thorough and fair for all parties involved.

Keep in mind that the insurance company settlement payment may be made out to both you and your mortgage lender. Before you may cash or deposit the check, you must first have it endorsed by the Loss Draft department of the mortgage firm. Though it may be inconvenient, this additional step is necessary to make sure your lender is aware of the damage done to your home before any refund is made. Once they find out, they might insist on a post-repair inspection of the house.

Step 9: Meet with several contractors.

Now that the water has been removed and the risk of mold or mildew is gone, the damaged area can be repaired or rebuilt. In other cases, like with a smaller project, it may not be necessary to meet with several different contractors. After all, it might not be worth your effort to call multiple professionals and schedule interviews and consultations just to save a few hundred bucks.

However, it makes sense to choose the ideal partner if you’re considering a large project, especially if it will entail several subcontractors. Once again, your insurer has no say in whose provider you see. You should get many estimates for the work and compare them to the amount your adjuster offered as a settlement before hiring a contractor. If you think your adjuster’s estimate is too low, visiting with different contractors might assist you establish that other professionals share your opinion.

Step 10: Negotiate the settlement for repairs.

If the amount at stake is little enough, you may not even need to negotiate. However, it might be difficult to coordinate your adjuster and contractor on a major project. Your independent insurance agent is another useful resource here. You can have your agency act as a go-between if you don’t have the stomach for a negotiation about what defines like-kind replacement goods. He or she will know how to best present your case because of their greater familiarity with the procedure.

While you can’t count on your insurer to cover the cost of any enhancements you make to your home (i.e., things like new appliances or flooring), you can feel free to take advantage of this opportunity to update the damaged section (be it a kitchen, bathroom, or basement) and foot the bill yourself. Many people whose homes have been damaged by water don’t want to replace things like countertops or tiles that date back to the 1970s. If this sounds like your predicament, it’s important to be forthright with your insurance adjuster about your expectations and wishes. Discuss your options with your contractor and determine how much money you would save by making changes vs simply fixing the bathroom as it is now.

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Step 11: Just in case… be prepared to get non-renewed.

Obviously, this isn’t always the case. Numerous homeowners, however, choose to stay with their present insurance provider. Did we forget to explain that if you make a large claim, your insurance provider may decide not to renew your policy? We are well aware of how bad it is. Moreover, many view this as being unfair. When you get insurance, it’s for the possibility that you’ll need assistance in the future. And when you do, you’re going to get in trouble for it.

The truth is that insurance firms use intricate algorithms to figure out which risks (and clients) are worthwhile. This ensures that they can continue to make a profit and deliver on their mission. They would go out of business really soon if they claimed they could help everyone, regardless of their loss history.


Dealing with the aftermath of water damage to your floor is not a simple task. Knowing how insurance pays to repair water damage to floors is crucial for making decisions about which insurance policy to purchase. We really hope that the information provided in this post regarding water damage insurance was useful to you.

Helen Skeates

Helen Skeates

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