There are numerous ways you can sustain damage by water and perhaps because of that, there is often confusion on what is covered and what is not. In an attempt to provide some clarity, let’s explore some various scenarios.
Flood or Rising Water
If you sustain damage by water that enters in from the outside (i.e. water that rises and enters your building), that’s generally referred to as a Flood. Damage by flood is not covered under most standard insurance policies. The only exception would be if a specific insurance carrier had a special endorsement adding flood coverage and typically at a limited amount of coverage.
Even if your property has not flooded before does not mean in the event of a heavy rain or extended days of rain, you will not. Think back to Hurricane Harvey or even the recent heavy rains in the Houston area – properties that had never flooded before did. Without flood coverage, chances are you would not have coverage and those damages can easily reach into the thousands.
Plumbing / Sprinkler Leaks
Most commercial policies cover sudden and accidental water damage. Examples would include a burst pipe, burst sprinkler head, or toilet/baptistry overflow. We don’t have to think much further back than the “Texas Freeze” to remember the number of homes and commercial properties (like churches), that had a plumbing leak from busted pipes or sprinkler head leaks due to the cold temperatures. But it doesn’t have to be a freeze event – generally speaking, if you have a plumbing leak, not to worry because you are covered for that.
Roof Leaks
This may be the most difficult and hardest to understand scenario to determine if your insurance policy will cover damage caused by a leaking roof. Each situation can be unique so it’s difficult to make an absolute statement but generally speaking………If you have a roof that is allowing water to enter into your building (i.e. roof leak), for this to be a covered insurance event, there must be an opening made by a named peril.
Leaks and other forms of water damage originating from the rooftop are generally only covered if the damage was caused by a covered event such as hail puncturing through the roof, a windstorm that lifted up the roof allowing water to enter, a fallen tree that made a hole in the roof, etc. If a leak develops over time due to wear and tear, or if the roof has not been properly maintained, an insurer will likely deny coverage.
Consider for example that one of the top causes of commercial roof damage is faulty flashing. Roof flashing is used by professional roofers to direct water away from critical areas of the roof and is typically installed around vents, abutting buildings, and skylights. Installing flashing requires accounting for the expansion and contraction of roof materials in response to the elements. When installed incorrectly or punctured, flashing can cause a roof to leak. Additionally, issues around a roof’s pitch pan can also cause leaks to emerge. The pitch pan is used to seal the areas around pipes that may go through the roof. When they are not sealed properly, they can easily cause leaks.
Tip: Have your roof inspected. Recommendations for how often to inspect your roof can range from twice a year to once every three or four years. Though it can be tempting to have an out-of-sight, out-of-mind attitude toward your roofing system (including and maybe even especially metal roofs), the truth is that the small cost of having a professional roof inspection is well worth it when compared to how expensive it can be to repair problems that could have been prevented with more diligent attention. Additionally……….
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Clean gutters and drains. Clogged gutters, downspouts, and drains can trap water on the roof. If the weight of accumulated water grows too heavy, the roof could fail.
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Remove debris. Debris tends to hold water, which expedites roof deterioration. Look for leaves, branches, and other material that has gathered behind HVAC units, pipes, skylights, and other objects on the roof.
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Trim trees. Trim back any overhanging tree branches. This will reduce the amount of maintenance required to keep gutters and drains clear and decrease the risk of limbs falling on your building.
Wind Blown Rain
Wind-driven rain is the sudden and temporary entry of rain, snow, sleet or ice pushed into a building by wind. Many property insurance policies do not provide wind-driven rain coverage or coverage could be limited. That is unless the building first sustains damage by a covered cause of loss to its roof or walls through which the rain enters. Coverage may be available through other sources but generally not under most commercial policies.
Roof Collapse Due to Weight of Rain That Collects On A Roof
This is a rare occurrence and with proper roof maintenance, probably should not happen but in the event it does, generally speaking this would be a covered event.
Other Influences:
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Wind/Hail Coverage – Most water damage that originates from a leaking roof are generally only covered if wind and/or hail coverage is included in your policy. If your policy excludes wind and/or hail coverage, it’s likely that water leaks from the roof will not be covered.
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Roof Age – An older roof may result in either a roof exclusion or an actual cash value clause applied to the roof. As noted above, a roof exclusion will generally preclude any coverage for water leaks coming from the roof and actual cash value (replacement cost less a deduction for depreciation) will reduce the amount of money you receive for a covered cause of loss.
If you have any questions or need more information on anything mentioned in this article, please reach out to us.
