Floods leave an expensive aftermath for condominium associations and unit owners, affecting buildings, interiors, HVAC systems, communal areas, and almost every aspect of a property. There are extraordinary costs associated with water removal and cleanup, and partial repairs won’t always work for property features affected by leaks, standing water, debris, and mold. Unfortunately, when policyholders make major mistakes with their flood-insurance claims, they can end up paying for these needed recovery expenses from their own pockets.
Major Mistakes Condo Owners Make With Flood Insurance Claims
While most condominiums are covered by flood-insurance policies held by individual owners or the condo association, policyholders can end up making expensive mistakes during the insurance-claims process that threatens their ability to recover, including:
- They don’t understand their policyholder rights. When insurance companies unfairly delay, deny, or underpay flood-insurance claims, condo owners may not know that they don’t have to take no for an answers—and they can fight for a better outcome.
- They forget that flood damage can be worse than it might appear at first glance. Some policyholders rely on their own eyes and the insurance company’s estimates, and they don’t take the extra steps needed to make sure all damage has been thoroughly assessed and documented. Unfortunately, they may end up missing “hidden” damages or costs in the initial estimates, and they may mistakenly accept serious underpayments for their flood-damage claims.
- They submit flood-related claims under the wrong policy. Flood damage to a condo can be partially covered by a number of different policies or policyholders, and it may not be clear who should submit the claim or which policies covers each type of flood-related loss. This is especially true when flooding occurs as the result of a destructive storm that has also damaged the condominium property.
Real Help for Condo Owners With Flood-Damage Claims
Even when policyholders make honest mistakes, it can take a trained eye to sort through the claims that have been filed, get real answers from the insurance companies involved, and identify the root of the problem. If you have questions about a flood insurance claim, or if you can’t get the resolution you need from your condominium insurance carrier, don’t hesitate to contact our office by phone or look over our free book, Disputes With Your Insurance Company: What All Consumers Need to Know.