It has happened to many homeowners over the years – a suddenly appearing damp spot in a floor, wall, or ceiling that turns out to be the product of a long term hidden leak. Hidden water damage (often referred to as “leakage / seepage”) can present many challenges and concerns for homeowners.
The Problem with Leakage / Seepage Claims
Water damage from a hidden cause may or may not be covered depending on your carrier and their specific restrictions on water damage claims. Many carriers switched some years back to writing policies that exclude leakage and seepage damage that has been occurring over a lengthy time period. Of course, for many homeowners, knowing about water leaks the minute they occur is often impossible. Leaky pipes located in walls or under flooring can remain undiscovered for months, causing extensive damage before they are finally revealed.
In addition to these exclusions, many carriers will also place a restrictive cap on covered damage due to leakage / seepage. This could mean the homeowner ends up paying out of pocket for costly repairs to their floors, walls, or ceilings.
Why is Leakage / Seepage Coverage so Restrictive?
Comprehensive coverage for leakage / seepage claims has been harder to get in recent years thanks to contractor AOB fraud. Except for weather events, leakage and seepage are responsible for the most claims against homeowners insurance policies each year – and most likely to be taken advantage of by contractors who convince homeowners to sign an Assignment of Benefits (AOB) form.
AOB forms give control of the homeowner’s rights under their policy to the contractor, and the results can be expensive. In fact, claims submitted by a contractor under an AOB form typically end up costing triple the amount of a normal water related claim. Language regarding coverage for hidden water damage has therefore been adopted by many insurance carriers in an effort to curb AOB fraud and limit liability.
The Olympus Difference
Olympus polices often cover leakage and seepage damage even if the leak has been ongoing for weeks or months. There is no automatic exclusion for simply not knowing the leak existed. Olympus also works hard to educate homeowners about AOB fraud so they can avoid unscrupulous contractors and inflated claims.
Olympus and Rytech
Olympus Insurance also helps homeowners to protect themselves from potential inflation of costs for mitigating water damage by partnering with Rytech, a well-known and established water mitigation company. While Olympus policyholders still retain the right to choose the contractor of their choice, working with Rytech allows them to make a single call in case of water damage, and their claim can be handled swiftly and effectively.
Being proactive when it comes to leakage / seepage claims can save you thousands of dollars. Olympus policies offer extra protection and peace of mind when it comes to leakage / seepage claims, so ask your agent about Olympus today.
About Olympus Insurance Company
Headquartered in Palm Beach Gardens, FL and founded in 2007, Olympus Insurance Company specializes in Florida property insurance. Through its independent agency force, Olympus insures $40 billion worth of residential and investment property including homes, condos, rental property, and valuable personal property, with umbrella coverage and Spartan Enhanced Coverage available. Coverage for individual risks up to $5 million in total insured value is provided on one of the most comprehensive coverage forms in the industry.
For more information, visit olympusinsurance.com.
This article is for informational purposes only and does not form a part of, replace, change or amend any terms, conditions, provisions or language within your Olympus Insurance policy. We encourage you to read your entire policy.