Insurance Professionals: Question about making a claim.

[dannylion]

Just discovered a leaking pipe in my unfinished basement.  I have no idea how long it has been leaking.  It appears to be a small leak and is near the wall and it looks like the exposed insulation has absorbed a lot of water.  There is now water along the wall and a puddle has formed where the water has followed the floor contour and gravity.  The damage is confined to a fairly small portion of the basement but will likely need attention to prevent mold and other undesirable sequelae.  

The plumber is coming sometime today to address the leak.  I will then hire a water-damage restoration company to deal with the results of the leak.  No idea what it's going to cost.  

I understand that a water damage claim is anathema to insurance companies, so I am not currently planning to get my insurer (USAA) involved.  I can afford to pay for whatever the cost to restore the damage turns out to be, but would, of course, not be averse to hanging onto the money if making a claim for the water damage would not come back to bite me later in drastically increased premiums or possibly even cancellation of the policy.  

I would be grateful for the opinion our insurance pros.  

[minnesotapaintlady]

Not an insurance pro.  But made some big claims in the past few years and have flooding issues, so quite versed in drying out a basement before anything bad happens. 

Once the pipe is fixed, I would just pull and discard all the insulation there so the wood can dry out first and to get a better look at things before hiring anyone else. If no mold is growing on the wood you should just be able to replace the insulation with new stuff, if you're worried about mold being there you can spray it down with bleach first and let it dry out again.  I can't see making a claim for less than a few thousand dollars, and this doesn't sound like a huge issue with no drywall to deal with. 

As for rates, my insurance was $1500/year.  A claim in 2019 for 7K (well pump), upped it to $1700.  An 18K claim last year for a new roof took it up to 2K/year (State Farm).  I don't know how much of this increase was due to the claims and how much was just inflation.  I know I lost the 15% "no claims" discount. 

[andi9899]

If you can afford to pay for the damage without causing financial strain, I'd just pay it if it's only a couple thousand dollars. If they give you an enormous quote to fix it, file.

A water claim is a chargeable claim and will be held against you for 3 years. Unless you have other claims in the recent past, it shouldn't get you canceled. It will, however result in higher premiums. I've never written for USAA, so I don't know the inner workings of that company to tell you what kind of premium jump there would be.

[dannylion]

Thanks minnesotapaintlady and andi9899!  I think just paying for it out of pocket will be the best way to go.  I will need to have someone do the work as my mobility is limited by age and arthritis, but to be honest, I'd probably just hire someone to do it anyway as I am not particularly handy.  

[nidena]

I filed a claim on my Delaware house for water damage when I noticed the roof was wet in the attic.  They opted not to reimburse me for anything because I didn't notice it sooner.  I had USAA at the time.

What sucks is that you won't know what they'll cover until you file the claim.  I would just repair it and move on.

Sidenote: I recently went through a insurance broker to see if I could get better coverage/price on both homeowners and auto insurance.  The broker found SafeCo to be better and it's $300 less/year.

Might be something to consider.

[dannylion]

Thanks nidena.  My USAA premiums have been rising regularly, and I have been thinking it is probably time to start shopping around again.  I will put that on my list of things to do in the New Year.  

The plumber has come and fixed the leak (actually somewhat less expensive than anticipated).  I asked him who his company recommends for water damage restoration and will be calling that company on Monday.  Will not be going through insurance.   

[raeoflyte]

We just had something similar. Bathroom sink leaking into basement.

A few years ago Dh had a full fish tank fall and shatter and for that we went through a restoration company. Even though everything was cleaned up within 3 hours we spent 3k. They wanted to do more - ripping out a 3x3 section of wall that barely had any water on the very bottom.

The plumber this time recommended a similar company after repairing the leak (to be fair I asked for recommendations), but I wasn't willing to start with a restoration company this time. I think they go in assuming everything has to be ripped out and replaced. We have our handyman fixing the bathroom. For as freaked out as we were when it happened its turned into more of a cosmetic upgrade.

[dannylion]

Jan 2, 2022 9:38:10 GMT -5 raeoflyte said:

We just had something similar. Bathroom sink leaking into basement.

A few years ago Dh had a full fish tank fall and shatter and for that we went through a restoration company. Even though everything was cleaned up within 3 hours we spent 3k. They wanted to do more - ripping out a 3x3 section of wall that barely had any water on the very bottom.

The plumber this time recommended a similar company after repairing the leak (to be fair I asked for recommendations), but I wasn't willing to start with a restoration company this time. I think they go in assuming everything has to be ripped out and replaced. We have our handyman fixing the bathroom. For as freaked out as we were when it happened its turned into more of a cosmetic upgrade.

Thanks for sharing your experience.  I will keep this in mind when dealing with the restoration company.  The leak had probably been going on for several weeks as the insulation in the area around the pipe is saturated.  The apparently only started appearing once the insulation was unable to hold any more water.  The plumber noticed the beginning of mold on the wall under the leak, so that will need to be dealt with.  Fortunately, there is no drywall or flooring to deal with, just the insulation and a fairly limited section of concrete wall and floor.  Whatever gets done, though, will have to be done by someone I hire as I am unable to climb ladders or wrangle anything large or heavy.  

I'll call the restoration folks tomorrow (the leak, now stopped, has been happening likely for weeks, I don't see any reason to pay emergency rates to get them here a day earlier) and see what they suggest.  

[Tiny]

Dannylion - I've got experience with basement water issues in an unfinished basement (so no drywall or carpeting/flooring.)  Multiple clean ups - various types of water issues.... ::sigh::  

You may be able to simply spray down or wipe down or mop the concrete and foundation wall with a mix of water and bleach. Google for the amounts to mix. That will deal with the mold and any future mold/mildew. Sometimes it's emotionally satisfying to "bleach" everything a second time - just to kill any "survivors" and than maybe a third time. Go to the Dark Side. Bwa haa haa haa ha!!!!     I've  cleaned  basements (mine and other houses a time or two...)    and have embraced the "Mold/Mildew is the ENEMY!  It must DIE!!!!!!!"    Hence going to the Dark Side.   But really one good application is enough.       

DO NOT contemplate adding ammonia to any of this. You want to kill the mold/mildew not yourself. The Dark Side can be dangerous if you go to far.

Odds are any cleaning or remediation service is basically going to do exactly that - spray/mop/wipe down surfaces with a solution that kills mold and mildew. Bleach and water do the same thing.

Right now - while waiting for  the next step:   You may want to set up some air flow (a fan or a dehumidifier) to help the concrete/foundation dry out. Your dehumidifier may pull a couple of gallons of water out of the air - so don't be surprised if you have to keep emptying a one or two quart sized tank many many many times.

The "water" wasn't just in the insulation - some of it evaporated and is in the air and may have settled in other places -- hence the use of a fan or dehumidifier to help remove/dry out the rest of the basement and to keep any mold/mildew from growing elsewhere.

Google how to clean up after basement flooding (it's sounds and looks scary but the basic stuff applies to your situation) or how to clean up after a water leak in a basement.

You have a small clean up - not a whole basement clean up.

[dannylion]

Jan 2, 2022 13:42:58 GMT -5 Tiny said:

Dannylion - I've got experience with basement water issues in an unfinished basement (so no drywall or carpeting/flooring.)  Multiple clean ups - various types of water issues.... ::sigh::  

You may be able to simply spray down or wipe down or mop the concrete and foundation wall with a mix of water and bleach. Google for the amounts to mix. That will deal with the mold and any future mold/mildew. Sometimes it's emotionally satisfying to "bleach" everything a second time - just to kill any "survivors" and than maybe a third time. Go to the Dark Side. Bwa haa haa haa ha!!!!     I've  cleaned  basements (mine and other houses a time or two...)    and have embraced the "Mold/Mildew is the ENEMY!  It must DIE!!!!!!!"    Hence going to the Dark Side.   But really one good application is enough.       

DO NOT contemplate adding ammonia to any of this. You want to kill the mold/mildew not yourself. The Dark Side can be dangerous if you go to far.

Odds are any cleaning or remediation service is basically going to do exactly that - spray/mop/wipe down surfaces with a solution that kills mold and mildew. Bleach and water do the same thing.

Right now - while waiting for  the next step:   You may want to set up some air flow (a fan or a dehumidifier) to help the concrete/foundation dry out. Your dehumidifier may pull a couple of gallons of water out of the air - so don't be surprised if you have to keep emptying a one or two quart sized tank many many many times.

The "water" wasn't just in the insulation - some of it evaporated and is in the air and may have settled in other places -- hence the use of a fan or dehumidifier to help remove/dry out the rest of the basement and to keep any mold/mildew from growing elsewhere.

Google how to clean up after basement flooding (it's sounds and looks scary but the basic stuff applies to your situation) or how to clean up after a water leak in a basement.

You have a small clean up - not a whole basement clean up.

Thanks Tiny!  This will be useful information for my conversation with the restoration folks.  I know I am fortunate not to have to worry about drywall or flooring or carpeting or restoring damaged possessions.  If I were young or at least agile or maybe just functional enough to climb ladders and lift things, I would definitely be doing all of that myself.  I wish I could, but I cannot do any of that, so I am happy to have gotten a recommendation from the plumber for someone who will do it for me.  I do appreciate hearing from others who have experienced similar problems so I know what to ask and what I should expect the professionals to address.