Common Water Damages Covered Under Commercial Policies

4/19/2019 (Permalink)

Damaged pipes are not always covered under commercial insurance policies, but certain situations are.

Most business owners understand that water damage that occurred as a result of neglect will not be covered under their business policies. Therefore, if damaged pipes have been left unchecked and without inspection for years, then any subsequent damage will likely not be covered. However, if the disaster is sudden, then a policy may cover it, especially under specific instances.

1. Sudden Breaks

While leaking pipes may not be covered, sudden breaks most likely are. These breaks happen despite the business owner performing routine inspections and maintenance. These failures are considered not foreseeable, meaning that despite the preventative and proactive steps taken by the property owner, the disaster happened anyway. This type of accident is likely covered under your policy.

2. Fire Suppressant System Leaks

While insurers do not always cover damaged pipes, fire suppressant system leaks often are. The life-saving nature of these systems is likely why insurers are willing to provide coverage, especially since these devices help to protect the facility from a further loss in the event of a fire.

3. Damage to Protective Systems

In addition to leaks, your insurer will likely cover damage to protective systems as well. This means that if the sprinkler heads are damaged or the pipes corroded, your insurer will probably cover the costs associated with the repair. By including these minor expenses, insurers can prevent further loss through system malfunctions and flooding.

4. Tear Out and Repair

The insurance company will often cover the cost of tear out and repair. Due to the design of plumbing systems, most pipes are located behind walls and inside ceilings. Therefore, while your policy may not cover a leaky pipe, it may cover the cost of hiring a disaster restoration specialist in the Pompano Beach, FL area to tear out the wall and repair it.

Damaged pipes are not always covered under commercial insurance policies, but certain situations are. Sudden breaks and damaged fire sprinklers are likely covered under every commercial plan, and while leaks may not be, the tear out and repair work probably is.