Water Damage Insurance Claims: Key Issues and Strategies for Policyholders and Insurers

Water damage is one of the most frequent, expensive, and extensive claims that arise to either a residence or a business. In the commercial setting, the complexity of the mechanical systems can lead to extensive damage throughout and also damage to equipment and supplies needed to operate the business. What is and is not excluded is often a contentious issue between the policyholder and insurer.

No standard policy for water damage coverage exists and exclusions related to water and water-related damage come in many different forms. Significantly, many of the terms used in exclusions are undefined or ambiguous. Determining whether coverage exists requires navigating how these terms are used and all the different exclusions and exceptions in the policy.

Two issues that often arise are whether the damage was "sudden and accidental" and the absence or presence of a concurrent cause. Anti-concurrent cause provisions can prohibit recovery if both covered and non-covered perils result in loss.

Listen as this panel of expert property damage attorneys distills the complexities of water damage claims and offers practical insights for finding coverage or enforcing exclusions.