Water Damage 101
Water damage is the most common — and most disputed — homeowner insurance claim. Understanding the basics puts you ahead of most policyholders before the adjuster even shows up.
Types of Water Loss
| Type | Example | Typically Covered? |
|---|---|---|
| Sudden & accidental | Burst pipe, water heater failure, appliance line rupture | Yes — this is what standard HO-3 policies cover |
| Hidden / slow leak | Pipe leaking behind a wall for weeks or months | Often disputed — insurers argue "gradual" vs "sudden" |
| Sewer backup | Drain line backs up into basement | Only if you have a sewer/drain endorsement (many don't) |
| Roof intrusion | Storm damage lets water in | Usually covered, but scope fights are common |
| Groundwater / flooding | Rising water table, overland flow | NOT covered by homeowners insurance — requires separate flood policy (NFIP or private) |
| Foundation seepage | Water coming through basement walls or floor | Almost never covered — considered maintenance |
The critical distinction: Insurers will try to classify your loss as "gradual" (excluded) rather than "sudden and accidental" (covered). The date of loss vs. date discovered matters enormously.
First 48 Hours — What To Do
1. Stop the water source (if safe)
Turn off the main water shutoff. If you don't know where it is, find it now before you need it. For most Colorado homes it's near the front of the house or in the basement.
2. Document before you touch anything
- -Video walkthrough — narrate what you see, slow and steady, with good lighting
- -Photos — wide shots of each affected room, close-ups of damage, photos of the water source
- -Measure standing water depth — use a ruler or tape measure in the frame
- -Timestamp everything — make sure your phone's date/time is visible in metadata
3. Mitigate — but don't overdo it
Your policy requires you to "mitigate further damage." This means:
- -Extract standing water (shop vac, towels, pump)
- -Move furniture off wet carpet
- -Set up fans if you have them
Do NOT start ripping out drywall, carpet, or baseboards before the adjuster documents the damage. If the insurer argues you destroyed evidence, you lose leverage.
4. Call your insurer to open the claim
- -Note the date, time, claim number, and name of everyone you speak with
- -Keep it factual: "I have water damage in my basement from a burst pipe. I'm reporting a claim."
- -Do not speculate about cause, timeline, or cost on the phone
- -Do not give a recorded statement until you understand your rights
5. Call a restoration company
A mitigation company (like ServPro, PuroClean, or a local equivalent) will set up drying equipment. Some things to know:
- -The insurer may recommend "their" mitigation company — you are not required to use them
- -Get the mitigation company to document moisture readings, affected materials, and photos
- -Keep all invoices — mitigation costs are part of your claim
6. Get an independent contractor estimate
Don't rely solely on the insurer's scope. Get your own contractor to write a repair estimate. This becomes your leverage in scope disputes.
The Timeline That Matters
| When | What |
|---|---|
| Day 1 | Report claim, document everything, start mitigation |
| Days 1-3 | Insurer assigns adjuster (staff or independent) |
| Days 3-14 | Adjuster inspection — be present, take your own photos |
| Days 14-30 | First estimate/offer from insurer |
| Day 30+ | Negotiation begins if offer is low |
In Colorado, insurers must acknowledge your claim within 15 working days and make a coverage decision within a reasonable time. See Colorado Rights for specific DORA timelines.
Common Mistakes
- -Throwing away damaged materials before documentation — photograph and video everything before removal
- -Signing the insurer's first offer immediately — the first number is almost always low
- -Not reading the actual policy — request your full policy (declarations page + all endorsements), not just the summary
- -Admitting fault or speculating on cause — "I think it's been leaking a while" can be used against you
- -Skipping the independent estimate — this is your single most important piece of leverage
General information, not legal advice. For advice specific to your situation, consult a licensed professional.