In coastal areas where hurricanes have long been considered the largest weather-related threats to homes and infrastructure, Winter Storm Uri’s force and damage took many Texans by surprise when it hit in 2021, causing “more than $195 billion in damage, making it the costliest natural disaster in Texas history,” according to the City of Austin (“Year in Review Winter Storm Uri,” n.d.).
Property owners, both residential and commercial, were taken by surprise when faced with unexpected damages stemming from broken pipes, collapsed ceilings, and flooded homes (Foxhall, 2023). The widespread damage was not a quick fix as insurance companies were unable to adequately respond to the influx of claims.
As a result, for months after the storm, Tiger Adjusters received phone calls from policyholders who had not settled their claims with their insurance companies. In many cases, the insurance companies had not even provided an estimate for the scope of losses due to water damage from burst pipes. Without this estimate, homeowners were unable to recover the money needed to make the necessary repairs.
Many homeowners were forced to pay out-of-pocket living expenses when they had to leave the property. Additionally, homes and buildings with water damage are unsafe to live in when there is a build-up of black mold (Russek, 2021).
One way to achieve a fair and timely outcome when catastrophic damage occurs is to enlist the help of a Public Adjuster. As licensed insurance professionals, Tiger Adjusters helps the policyholder recover their losses, and handles the entire claims process. The top two reasons people hire us are:
In general, water damage from a burst pipe will be covered by a standard homeowners and commercial insurance policy. But not all insurance policies are alike, and each property owner should take the time to check for coverage either by calling their agent or reading their specific policy. Some policies require the insured to maintain a certain temperature in buildings and homes.
Failing to maintain policy requirements with these types of clauses in them can trigger a claim denial. How you report a water damage claim to your insurer can also make a huge difference. For example, insurance companies have a specific definition of the word ‘flood,’ and floods are only covered under a separate policy. Even using the word in a casual context when making a call to your agent can cause you trouble later. That’s why we recommend that you always refer to your claim as “water damage.”
Unfortunately, policies typically do not afford coverage to the damaged pipes themselves. This means the property owner will be responsible for repair or replacement of the broken pipes and any associated plumber costs.
Just as it is important to understand coverage, it is a duty of the policyholder to start the cleanup, dry out, and mitigation process in order to prevent further damage from occurring.
Naturally, there will be pressure on the policyholder to hire qualified and professional help. Unfortunately, unscrupulous contractors may try and take advantage in times of crisis, and it is important the policyholder read and understand the work authorization forms presented to them by the emergency service crews, even forms supposedly sent from the carrier.
Be aware that in situations such as widespread frozen pipe leaks, price gouging can occur— and you are signing these forms, not your insurance company. Your insurance company is not likely to pay anything but “reasonable and necessary” clean-up and repair costs. That means the balance of the bill will be your responsibility since you agreed to pay when you signed the work authorization form.
Your water damage claim might be denied if your insurer concludes that you are responsible for the pipe bursting. Most pipes that burst do so because they freeze. If you left your home unheated during freezing weather, your insurer can cite your “negligence” as the basis for denial. The carrier may also cite “normal wear and tear” as their basis of denial. An example of this could be an old or corroded pipe that wasn’t replaced before the storm.
In situations like this, using an experienced Public Adjuster to negotiate your claim can be helpful. The origin of the damage heavily influences coverage determination for a claim, and a good Public Adjuster knows how to substantiate the policyholder’s position through documentation.
If you are among the many home and business owners who have experienced a burst pipe due to freezing temperatures, Tiger Adjusters can help you properly evaluate the loss and file your water damage claim so you get a fair settlement. When cold weather calls, call your claims solution champion, Tiger Adjusters.
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BIBLOGRAPHY
City of Austin (n.d.). Year in review: Winter Storm Uri. City of Austin Open Data Portal. Retrieved from https://data.austintexas.gov/stories/s/Year-in-Review-Winter-Storm-Uri/hpvi-b8ze/
Foxhall, E. (2023, February 14). Lawsuits pile up two years after Texas’ devastating winter storm. Retrieved from https://www.texastribune.org/2023/02/14/texas-winter-storm-lawsuits-anniversary/
Russek, S. (2021, September 9). Tenants with mold in their homes have little recourse. Retrieved from https://www.texasobserver.org/you-see-people-with-mushrooms-growing-out-of-their-carpets-tenants-with-mold-in-their-homes-have-little-recourse/
