Water damage is a common issue commercial property owners face, and it can also be one of the more costly. Unfortunately, many business owners and managers assume that their insurance coverage will provide full protection when problems related to moisture intrusion and mold growth occur. In fact, there are many commercial water damage insurance coverage gaps that you need to watch out for.
At 1-800 WATER DAMAGE, we offer commercial restoration services designed to help businesses quickly respond to and recover from losses related to water damage and mold growth. We have seen firsthand how uncovered losses can delay day-to-day operations, put pressure on tight budgets, and lay the groundwork for long-term complications.
Understanding the areas where your insurance coverage could be falling short is essential to ensuring your business has the protection it needs before disaster strikes. Read on to learn more about some of the most commonly overlooked commercial water damage coverage gaps and how we can help safeguard your business from these issues.
1. Damage from hidden or gradual leaks.
Many insurance policies offer coverage in the case of a sudden water event or major accident, such as a burst pipe. However, it is much less common for insurance carriers to cover long-term leaks or water damage resulting from maintenance issues or gradual, hidden moisture intrusion.
This means that unnoticed moisture seeping under your flooring, behind your walls, or through your roof might not be covered by insurance, even if it causes major problems to the structural integrity of your property. In cases where the source of the moisture is considered to be a maintenance issue, commercial property owners are often responsible for repairs, remediation, and restoration, which can be quite costly. As a result, even minor leaks should be addressed right away to help prevent the further consequences they can cause.
2. Flood damage exclusions.
If your standard commercial property insurance policy excludes flood damage and you lack a separate flood insurance policy, you may be surprised to find that you’re responsible for issues caused by weather events such as:
- Heavy rainfall and storm surges
- Overflowing lakes and rivers
- Rapid snowmelt
A single, unexpected weather event can have catastrophic effects, which is why it’s so important to remain aware of this kind of commercial water damage insurance coverage gap.
3. Sewer backups and overflowing drains.
While sewer line blockages, drain backups, and sump pump failures are quite common, many insurance policies fail to address them and require a special endorsement or add-on. This means that everything from repair costs to cleanup and remediation could fall onto your shoulders. Considering that sewage water requires specialized handling and advanced remediation techniques, these issues can result in significant and costly disruptions to business operations.
4. Certain aspects of business disruptions.
When you have to shut down your business temporarily in order to deal with water damage, while not universal, it’s common that business interruption insurance will cover your lost income. However, your policy may not cover nearly as much as you think. Here are some of the most common limitations:
- Lack of coverage for ongoing expenses
- Coverage only in the case of specific triggers
- Failure to cover lost income in the case of certain weather events
If you’re facing these kinds of insurance gaps, your business may be unable to operate for an extended period of time without financial support.
Help Protect Your Business By Partnering With 1-800 WATER DAMAGE
Understanding the commercial water damage insurance coverage gaps you might deal with is only the first step in protecting your business. It’s also important to turn to a prompt, experienced restoration team when you do encounter a leak or other water event.
At 1-800 WATER DAMAGE, we have a team of highly skilled commercial restoration technicians who can quickly identify hidden moisture issues and help you avoid secondary damage. Moreover, we offer rapid response times and professional restoration services in the event of an emergency.
Whether you are dealing with a plumbing malfunction, storm-related moisture intrusion, or a pesky leak, our team is here to help. Contact 1-800 WATER DAMAGE today to learn more about our areas of expertise and the many commercial water damage insurance coverage gaps you need to look out for as a business owner.
