Water Leaks Are the Most Common Business Loss – Are You Prepared?
Believe it or not, but water from damaged pipes is one of the main causes of business loss. Leaking pipes, if they go undetected, can wreak havoc on a building's structure and eventually, its contents. For this reason, it is important that your Denver, CO, building is covered in the event of a water loss. When shopping for a policy, look for the following types of coverage:
• Coverage for flooding
• Coverage for damage caused by sudden events
• Damage to fire protected systems
• Cost to tear out and repair building components
The above items are typically covered, though flood damage typically requires you to have a rider flood insurance policy. Damage caused by sudden events, however, is almost always covered if caused by suddenly damaged pipes or a sewage backup. Like every type of insurance policy, however, there are exclusions.
Common Exclusions for Water Damage Policies
When shopping for a water damage policy, it is important that you read the fine print, as it is not uncommon for policies to include wording that excludes what one might think is a covered peril. For instance, many water damage policies exclude the following damages:
• Those caused by slow leaks
• Leaks caused by freezing
• Mold damage
Unfortunately, if a leak has been present for a certain period of time, and if it causes structural damage or mold growth, neither the structural damage nor the mold growth will likely be covered. Additionally, if you live in an area prone to freezing, damage caused by burst pipes caused by freezing will not likely be covered either.
Water damage is one of the most common losses business owners face, yet many are unprepared for such an event. This is typical because they do not read the fine print before purchasing a policy. If you want to ensure that you're covered for water damage, whether it is caused by damaged pipes or flooding, discuss your unique exposures with your Denver, CO, water damage remediation company.