What Your Insurance Adjuster Won’t Tell You About Water Damage Losses

When you experience water damage in your commercial or residential property, the last thing you want to face is a drawn-out battle with your insurance company. Navigating water damage insurance claims is rarely straightforward. Insurance adjusters, who represent the insurance carrier’s interests, often overlook or downplay unseen damage, which can lead to significant underpayments. For property owners, this can be devastating—especially if the damage goes unnoticed for weeks or even months.

Water damage can occur for a variety of reasons, including broken pipes, leaks, and burst plumbing systems. But not all damage is visible to the naked eye. Microbial growth, dry rot, and weakened structural elements can lurk behind walls or under floors. Carrier adjusters frequently miss these hidden dangers, leading to denials or lowball settlements. Understanding how to properly navigate a water damage insurance claim can mean the difference between being fully compensated and shouldering repair costs yourself.

The Problem With Standard Insurance Adjuster Inspections

A typical insurance adjuster, employed by the insurance carrier, may conduct a quick inspection after you report a loss. However, these inspections are often superficial. Adjusters may miss or downplay secondary damages such as structural weakening, microbial growth development, or hidden moisture pockets in ceilings and walls. According to the American Policyholders Association (APA), carriers are known for employing tactics like "quick inspections" to minimize payout amounts, knowing many policyholders won't argue with the initial claim determination.

Many property managers and facility operators report that insurance companies routinely undervalue water damage insurance claims. As Jay M. Feinman, author of Delay Deny Defend, highlights, insurance companies make money by delaying, denying, and defending claims rather than promptly paying policyholders what they are owed.

Identifying Hidden Water Damage

One of the biggest challenges with water damage insurance claims is that much of the damage isn't immediately visible. Knowing what to look for can help you safeguard your property and ensure you receive the compensation you deserve. Key areas to inspect for hidden damage include:

1. Behind walls: Water can seep into insulation and drywall, leading to microbial growth and dry rot over time.
2. Under flooring: Wooden sub-flooring can warp or rot when exposed to water, particularly if the damage isn't quickly addressed or properly dried.
3. Ceiling areas: Water can travel along beams and other structural components, leading to unseen damage in ceilings far from the initial leak.
4. HVAC systems: Water damage affects ductwork and other HVAC components, which are costly to repair.

These issues are often only uncovered after a thorough inspection, something that public adjusters can advocate for on your behalf. Without a complete assessment, the damages in a claim can be severely underreported.

Documentation Is Key

One of the most important steps you can take in the water damage insurance claim process is thorough documentation. Photos, videos, and written descriptions of the damage are critical in making sure your claim is processed accurately. Keep in mind that insurance companies are businesses with the goal of minimizing payouts, and the more detailed evidence you provide, the harder it will be for them to dispute your claim.

Make sure to document not just the visible damage but any potential hidden damage areas, such as flooring or behind walls, where you suspect water may have traveled. Retaining experts, such as structural engineers or contractors, to confirm the extent of the damage can also bolster your claim.

The Importance of Hiring a Public Adjuster

To level the playing field, it’s highly recommended to work with a public adjuster when filing water damage insurance claims. Unlike insurance adjusters, public adjusters work solely on behalf of the policyholder. They advocate for you to ensure that all the damage—both seen and unseen—is accounted for and appropriately valued. Public adjusters are experts in understanding policy language, negotiating with insurance carriers, and advocating for a fair settlement.

David Skipton, a public adjuster with over 30 years of experience and author of The Claims Game: Broken Promises, emphasizes the importance of having an expert on your side: “Insurance companies are notorious for dragging their feet on claims, particularly with complex cases like water damage. A public adjuster will push for a thorough inspection and make sure nothing is missed.”

Avoiding Underpayment: Insist on Thorough Inspections

One of the most common ways insurance companies underpay water damage insurance claims is by performing rushed inspections or excluding potential secondary damage. Policyholders are often unaware that they can request a re-inspection if they believe that the initial inspection wasn’t comprehensive. In fact, the National Association of Insurance Commissioners (NAIC) advises consumers to ask for a second opinion or involve outside experts, such as public adjusters, to ensure that their claims are fully understood and adequately valued.

Protecting Yourself From Carrier Tactics

Unfortunately, it’s common for insurance carriers to employ tactics designed to delay or deny legitimate water damage insurance claims. As documented in a Florida OPPAGA report, "claims processing delays and denials" are a consistent source of policyholder complaints. Many companies will claim that certain damages are not covered or will attempt to reduce settlement offers by categorizing damages as wear and tear or long-term leaks and seepage, which are excluded under most policies.

The APA and the National Association of Public Insurance Adjusters (NAPIA) work tirelessly to protect policyholders and advocate for fair claims processes. They advise property owners to always carefully review the fine print of their policy and ensure they’re aware of their responsibilities after a loss, such as mitigating further damage and notifying their insurer promptly.

Ensuring Fair Compensation for Your Water Damage Claim

Water damage can wreak havoc on a property, but understanding how to navigate the water damage insurance claim process can make all the difference in ensuring you are fairly compensated. Don’t leave anything to chance—document everything, insist on thorough inspections, and consult with a public adjuster to ensure that every aspect of your loss is properly accounted for. Insurance companies are businesses that profit by minimizing claims, so it’s up to you to ensure you aren’t shortchanged.

Contact Velocity Public Insurance Adjusters today to learn how we can help you navigate the complex world of insurance claims with confidence.