According to Nonprofits Insurance Alliance of California (NIAC), the most common uncovered property claim they receive is water damage. Property claims are generally declined because of poorly maintained premises. Water damage is typically excluded from property policies with the exception that a covered cause of loss occurs first, such as wind or fire. Water damage claims can be preventable with regular maintenance. With the storms that have swept through California in the past few weeks, many organizations may have experience leaks and water damage from poor maintenance. Damage claims that are a result from improper maintenance are declined by most insurance carriers, as such damage is not categorized under a “sudden an unforeseen event.”
An effective risk management tip is to have routine property inspections. According to NIAC, some things that need to be checked regularly are: damaged flashing, roof scuppers, drains, gutters, and drain pipes. A failure to do so can turn a small fix into an expensive repair that would not be covered under your property policy. In other words, if damage can be deemed as a result of poor or negligent maintenance, it may be declined.
Also, consider purchasing flood insurance to protect your property. Flood insurance provides coverage against damage done by rising or overflowing bodies of water. Property policies, in general, do not insure flood damage. If you have any questions about property or flood insurance, or would like us to provide a quote, please contact us. We are here to help.
*This article is intended to be used for informational purposes only and not to be construed as legal advice.