Water Damage: How Business Insurance Can Help

5/18/2021 (Permalink)

Commercial property owners want to cut costs and improve profits. However, when it comes to insurance, you should rethink that stance. SERVPRO of Germantown / Collierville has found that water damage is among the most common issues businesses face. Without appropriate insurance coverage, the restoration expense is coming out of the owner's pocket or the company's profits. While it is true that business insurance does not cover every type of water issue, it does include many.

1. Leaking

When you have old pipes, it is possible to end up with several leaks. Unfortunately, because of the nature of plumbing, these leaks may go undetected for weeks or even months, leading to water-stained ceilings, crumbling drywall, and even structural damage. Most insurance policies will cover leaky pipes, especially if you have your building regularly inspected.

2. Cracks

Like leaks, cracks can cause the same types of water damage, but they may be on a grander scale. Cracks, or splits, in the pipe can cause more damage because the openings in the pipes are larger. As with leaks, if you can prove that you did not know about the damage early on, then your insurer should be willing to cover it.

3. Freezing

Colder months can wreak havoc on a business, especially those operating out of warehouse facilities and garages. The reason for the issue is that warehouses and garages have pipes exposed to severe temperature fluctuations. If pipes freeze, then the excess pressure can lead to broken pipes. Thankfully, this, too, is covered by a typical business policy. However, you must prove that you try to maintain a steady temperature at your property throughout the year.

4. Breaks

Sudden pipe breaks should be covered. In addition to the pipe repair, the water cleanup will likely be included. Your insurer may require estimates from several emergency remediation specialists in the Germantown, Tennessee, or Collierville, Tennessee, area, before funding the project. Give SERVPRO of Germantown / Collierville a call at (901) 755-3705 to schedule an estimate.

While it is understandable that business owners want to cut costs, insurance is likely not the area to save money. Water damage can account for thousands in restoration costs alone, so business insurance is necessary.