Unlocking Coverage for Water Damage: Understanding Policy Exclusions and Recent Legal Insights
Have you faced water damage, only to find that your insurance policy seems to exclude coverage for leaks lasting 14 days or more? Don’t lose hope – there might still be avenues for coverage. At Experienced Public Adjusters, we unravel the complexities of insurance policies, ensuring you get the compensation you deserve.
Policy Exclusions and Common Assumptions:
Many homeowner’s policies contain exclusions related to constant or repeated seepage or leakage of water over a specified period. Traditionally, it was assumed that if a leak extended beyond 14 days, the entire loss might be excluded from coverage. However, recent legal developments, such as the Hicks v. American Integrity Ins. Co. case, challenge this assumption.
In the Hicks case, the homeowner faced a slow leak in his refrigerator water supply line, which escalated to one thousand gallons per day over a prolonged period. Despite the insurance company’s denial, the Appeals Court ruled that if the insured can prove a loss within the first 13 days, coverage is provided for that initial period.
Legal Insights: Hicks v. American Integrity vs. Hoey v. State Farm Fla. Ins. Co.:
The Hicks case, falling under an all-risk policy, established that exclusions for leakage or seepage over 14 days don’t unambiguously exclude losses within the first 13 days. This legal precedent shifts the burden to the insurer to prove that any loss occurring after day 13 is excluded.
Contrast this with the Hoey v. State Farm Fla. Ins. Co. case, where a vacant home suffered damage due to a leaking toilet water supply line. The policy excluded losses caused by continuous or repeated seepage over time. The court upheld the exclusion based on evidence that the leak had been ongoing for an extended period.
Navigating Exclusions: Why Experienced Public Adjusters Matters:
Policy language, leak nature, and time frame are crucial factors in determining coverage. If your water leak claim faces denial, it doesn’t automatically mean the determination is correct. With an all-risk policy, proving a loss within the first 13 days could secure coverage.
The Hicks v. American Integrity case might face challenges, but for now, it stands as significant law in the 5th Circuit. If you find yourself with a water leak and a related exclusion, don’t give up. Contact us at Experienced Public Adjusters – we may still secure coverage for part of the loss, providing you the support you need.
Disclaimer: Experienced Public Adjusters is not a law firm nor attorneys. Our expertise lies in public adjusting, navigating insurance claims, and maximizing your compensation within the terms of your policy. For legal advice, consult with qualified attorneys.
Don’t let policy complexities deter you – call us, and let’s explore your options for coverage.