When disaster strikes, homeowners may find themselves with water damage caused by flooding, storms, burst pipes, or roof leaks. In such situations, hiring a restoration company to mitigate and repair the damage becomes a necessity. However, homeowners need to be aware of the insurance implications that come with hiring a restoration company for water damage restoration.
Whether insurance covers hiring a restoration company for water damage depends on the homeowner’s insurance policy, specifically the coverage for water damage. Most standard homeowners’ insurance policies cover water damage caused by sudden and accidental events, such as a burst pipe or storm damage.
Homeowners need to be familiar with their policy limits, which represent the maximum amount the insurance company will pay towards the covered expenses. Deductibles, on the other hand, are the amount homeowners have to pay out-of-pocket before insurance coverage takes effect. They should factor these limits and deductibles when considering hiring a restoration company.
Homeowners should carefully select a reputable restoration company that has experience in water damage restoration and is licensed and insured. It is recommended to get multiple estimates from different companies and compare their prices and services before making a decision.
Thorough documentation of the damage and the restoration process is crucial. Homeowners should keep detailed records of the damage, including photographs and videos. They should also obtain receipts and invoices from the restoration company for all services provided.
After hiring a restoration company, homeowners should promptly file an insurance claim. They will need to provide the insurance company with the documentation of the damage and the restoration services. The insurance company will then review the claim and determine the coverage and amount payable.
Here are additional considerations homeowners should keep in mind: