Dealing with water damage in your home is stressful enough without the added complexity of navigating an insurance claim. Yet the decisions you make in the hours and days following water damage can determine whether your claim is approved, how much you receive, and how quickly the process moves. This guide breaks down the insurance claims process for water damage step by step, so you can approach it with confidence and avoid the most common pitfalls.
Understanding What Your Policy Covers
Before a water damage event occurs, it is worth understanding the basics of what standard homeowner insurance policies in Colorado typically do and do not cover. This knowledge prevents surprises during the claims process and helps you make informed decisions about additional coverage.
Generally Covered
- Sudden and accidental water damage from events like burst pipes, failed appliance hoses (washing machine, dishwasher, water heater), accidental overflow from tubs or sinks, and ice dam-related leaks.
- Storm damage from wind-driven rain, hail damage that leads to leaks, and fallen trees that breach the building envelope.
- Fire suppression water damage, meaning water damage caused by firefighting efforts to extinguish a fire in or near your home.
- Vandalism-related water damage, such as someone intentionally breaking a pipe or hydrant on your property.
Generally NOT Covered
- Flood damage from rising water, overflowing rivers, or surface water accumulation. This requires a separate flood insurance policy, typically through the National Flood Insurance Program or a private insurer.
- Gradual damage from a slow, ongoing leak that you knew about or should have known about through reasonable maintenance. If a pipe has been dripping for months and you failed to repair it, the resulting damage may not be covered.
- Sewer or drain backup unless you have specifically added sewer backup coverage to your policy. This is an optional endorsement that many homeowners overlook.
- Ground seepage where water enters through the foundation due to hydrostatic pressure or poor drainage. This is generally considered a maintenance issue rather than an insurable event.
- Neglect or deferred maintenance, such as damage resulting from a roof you failed to repair or plumbing you ignored despite known problems.
Step 1: Mitigate Further Damage
Your insurance policy includes a duty to mitigate, which means you are required to take reasonable steps to prevent additional damage after the initial event. Failing to mitigate can give your insurer grounds to deny or reduce your claim.
Reasonable mitigation steps include shutting off the water source, removing standing water to the extent you safely can, moving undamaged belongings away from wet areas, and calling a professional restoration company. Importantly, mitigation costs are typically covered as part of your claim, so do not hesitate to call for professional emergency water extraction even before you have spoken with your insurer. In fact, your insurer expects you to do so.
Step 2: Document Everything Thoroughly
Documentation is the foundation of a successful water damage claim. The more thorough and organized your records are, the smoother the process will be and the more likely you are to receive fair compensation. Start documenting immediately, before any cleanup begins.
Photo and Video Documentation
- Take wide-angle photos of every affected room showing the overall scope of damage
- Capture close-up photos of specific damaged items, materials, and surfaces
- Photograph water lines on walls to document the depth of standing water
- Record video walkthroughs narrating what you see and the extent of the damage
- Photograph the source of the water damage if it is visible and accessible
- Take photos of your water meter reading if you suspect a hidden plumbing leak
- Ensure all photos and videos are date-stamped, which most smartphones do automatically
Written Records
- Create a timeline noting when the damage was discovered, when you shut off the water, and when you called for help
- Maintain a detailed inventory of damaged personal property with descriptions, approximate values, and purchase dates where possible
- Keep a log of all conversations with your insurance company, including dates, times, names of representatives, and what was discussed
- Save all receipts for emergency purchases, temporary accommodations, and any out-of-pocket expenses related to the damage
Step 3: Contact Your Insurance Company Promptly
Report the damage to your insurance company as soon as you have addressed immediate safety concerns and begun mitigation. Most policies require prompt notification, and delays in reporting can complicate your claim. When you call, be prepared with:
- Your policy number
- A clear description of what happened and when you discovered the damage
- Which areas and rooms of the home are affected
- Whether the water source has been stopped
- Whether you have called a restoration company and their name
The insurer will assign a claim number and schedule an adjuster to inspect the damage. In Colorado, insurers must acknowledge receipt of your claim within a specific timeframe mandated by state regulation. Record the claim number and the name of your assigned adjuster for future reference.
Step 4: Work Effectively With the Adjuster
The insurance adjuster's role is to assess the scope and cost of the damage on behalf of the insurance company. Understanding this dynamic helps you prepare effectively.
- Be present during the inspection. Walk through the damage with the adjuster and point out all affected areas, including those that may not be immediately obvious, such as moisture behind walls or under flooring.
- Share your documentation. Provide the adjuster with copies of your photos, videos, and written records. The more evidence they have, the more complete their assessment will be.
- Provide the restoration company's report. Professional restoration companies document moisture readings, affected materials, and the scope of work needed. This technical documentation supports the adjuster's evaluation and often results in a more accurate damage assessment.
- Do not accept the first estimate without review. The adjuster's initial assessment is exactly that, an assessment. Review it carefully against your own documentation and your restoration company's findings. If there are discrepancies, you have the right to discuss them and provide additional evidence.
- Ask questions. If anything about the process, timeline, or estimate is unclear, ask for explanation. You have the right to understand every aspect of your claim.
Step 5: Understand Your Payout Options
Most homeowner policies offer two types of coverage for damaged property, and understanding the difference is important:
- Replacement Cost Value (RCV) covers the cost to replace damaged items or materials with comparable new ones, without deduction for depreciation. This is the more favorable coverage type.
- Actual Cash Value (ACV) covers the depreciated value of damaged items, meaning replacement cost minus wear and tear. A five-year-old carpet, for example, would be valued at its current depreciated worth rather than the cost of new carpet.
If you have replacement cost coverage, the insurer typically pays the ACV amount first, then reimburses the difference once repairs are completed and receipts are submitted. Make sure you follow through on this second payment, as many homeowners leave money on the table by not submitting final receipts.
Common Mistakes That Hurt Your Claim
Years of working with homeowners through the claims process have shown us the most common mistakes that result in reduced or denied claims. Avoid these pitfalls:
- Delaying notification. Report the damage to your insurer as soon as possible. Delays can raise questions about the timeline and may violate your policy's prompt-notification requirement.
- Insufficient documentation. Too many homeowners begin cleanup before taking photos. Always document first, then mitigate.
- Discarding damaged items prematurely. Do not throw away damaged belongings before the adjuster has inspected them and you have documented them thoroughly. If items must be removed for health or safety reasons, photograph them extensively first.
- Failing to mitigate. Not taking reasonable steps to prevent further damage can result in your insurer denying coverage for the additional damage that could have been prevented.
- Accepting an estimate without review. The adjuster's initial estimate is negotiable. If your restoration company's assessment identifies damage the adjuster missed, provide that information and request a supplemental review.
- Not reading your policy. Many homeowners are surprised to learn what is and is not covered because they have never read their policy beyond the declarations page. Take time to understand your coverage before you need it.
- Hiring unqualified contractors. Insurance companies look favorably on work performed by IICRC-certified restoration companies that follow industry-standard protocols. Hiring an unqualified contractor can result in substandard work that creates additional problems and complicates your claim.
How a Restoration Company Supports Your Claim
A professional water damage restoration company does more than dry your home. They serve as an advocate and technical resource throughout the claims process. Here is how:
- Detailed documentation. Restoration professionals document moisture readings with calibrated instruments, photograph all stages of the process, and generate reports that meet insurance industry standards.
- Accurate scope of work. Using industry-standard pricing software like Xactimate, restoration companies produce estimates in the same format and language that insurance adjusters use, making comparison and approval more straightforward.
- Direct insurer communication. Experienced restoration companies work with insurance companies daily and can communicate technical details, justify the scope of work, and resolve disputes efficiently.
- Supplemental claims support. If hidden damage is discovered during the restoration process, such as mold behind walls or structural damage beneath flooring, the restoration company documents and reports it to support a supplemental claim.
Colorado Rapid Dry: Claims Assistance You Can Count On
At Colorado Rapid Dry, insurance claims assistance is built into every restoration project we handle. From the moment we arrive, we document everything with the detail and precision that insurance companies require. We work directly with your adjuster, speak the language of the industry, and advocate for full and fair coverage of all legitimate damage. Homeowners in Arvada and throughout the Denver Metro area rely on us to handle both the restoration and the insurance process, so they can focus on getting their lives back to normal. Call us 24/7 for immediate help with water damage and expert guidance through the claims process.