Was your home build before 1975? If so, unless you have already replaced your cast iron pipes with PVC, then you have Cast Iron Pipes in your home. So you want to get your cast iron pipes replaced but you realize this is a big cost and plumbing job.
Does Insurance Pay for Replacing Cast Iron Pipes?
Well maybe we can file an insurance claim. After all, I see all these ads from Attorneys like Morgan & Morgan about Cast Iron Pipe Lawsuits so I guess we can file a claim and the insurance will pay for new pipes right?
When does Insurance Pay for Cast Iron Pipes to be Replaced?
Insurance Companies will pay for your Cast Iron Pipes to Be Replaced when the following events happen:
-Backup or Overflow of Water
-Your Cast Iron Pipes have Collapsed
-Cracks or Holes in your Cast Iron Pipes
What will Insurance Pay for? Just the Pipes?
Actually, every homeowners insurance policy will state they pay for everything BUT the pipes. If you replace your cast iron pipes with PVC, the insurance company won’t pay for the PVC pipes. This is baffling. Let me explain. The total cost to replace cast iron with PVC for a 2,500 sq ft house is probably less than $2,000. However, the insurance company, usually, will pay for the cost of cutting into your floors and the concrete slab, cost of accessing the pipes thru your walls, and any other part of the house. This is also knows as “Indirect Damages“.
What else will the Insurance Company Pay for ?
If you had a backup or overflow of water and your cast iron pipes have cracks, leaks, holes, or collapsed, the insurance company could be responsible for:
-Floors throughout the house
-Kitchen Cabinets (if the pipes run under the kitchen)
Bathroom Drywall, Floors, Walls,
-Walls throughout Home
-Cost of Cutting thru the concrete slab and replacing the concrete
Most estimates we write are well over $100,000 in damages by the time everything is taken into consideration.
Direct vs. Indirect Damages
This video explains the difference between Direct Damages & Indirect Damages
My insurance company is saying they don’t cover Cast Iron Pipes? My insurance company is saying I have a $10,000 Water Damage Limit?
Some of the biggest obstacles in Florida have been insurance companies having their representatives, whether that’s the person answering your phone to file your claim or the claim adjuster, telling you that they don’t cover cast iron pipes, saying you have a Water Damage Limit of $10,000, or even worse you have a Water Damage Exclusion.
YOUR INSURANCE POLICY COULD BE THE #1 OBSTACLE AS TO WHY THE INSURANCE COMPANY DOESN’T PAY YOUR CAST IRON PIPE CLAIM!!!!!
Let’s take a look at some of the ways insurance companies, essentially committing fraud, manipulate their insurance policies so that they don’t have to cover your Cast Iron Pipe Claim
Example #1 Declaration Page
A good public adjuster should take a close look at your declaration page. Knowing how to identify intentional discrepancies can save your claim. Let me give you an example from one of my client’s declaration page:
I want you to look at the yellow highlighted areas. You will notice that the agent or insurance company, put a Water Damage Limit of $10,000 & Water Damage Exclusion as being “INCLUDED”. What the heck does that mean?
So does the insured have a $10,000 Water Damage Limit or is Water Damage Excluded meaning she has NO COVERAGE for any type of water damage loss?
Which is it? The answer is below but it’s a little complicated….
Again, this is what a good public adjuster can help you with.
#2 Limited Water Damage Endorsement
Pay special attention to what I’m going to show you here, there are two things. First, let’s look at the Top of this Endorsement:
Now see this wording “For an additional premium” , so according to this endorsement, the insured was supposed to “pay” additional money on her policy premium just to have a $10,000 water damage limit. What a joke! This is like stealing from people.
Here’s the great news!!!! If you look back at the declaration page, they never charged her an additional premium!! This is a major screw up!
The declaration page simply says “INCLUDED” as I had highlighted that area.
We now have a path to recover monies more than the $10,000 Water Damage Limit for the insured.
But Wait, There’s More!! Now Let’s look again at the Limited Water Damage Endorsement
Let’s examine the wording in endorsement:
“Sudden and Accidental Direct Physical Loss”
“discharge or overflow of water”
“from within a plumbing”
This is another way I am able to help my client because this limited water damage endorsement does not say anything about “INDIRECT DAMAGES” it only mentioned “Direct Physical Loss”
“Direct Physical Loss” is the water that back upped or overflowed that caused damage. Example, say water overflowed from your toilet, flooded your bathroom, and caused damage to your baseboards, vanity, floors, etc…
“Indirect Damages” is the “cost to tear out or access” the plumbing system. Another words, this is cost of cutting into the slab, your floors, walls, etc…While the water didn’t overflow and cause damage to these items, these are the indirect damages you will suffer as a result of the plumbing system causing the back up or overflow.
Hopefully, by this cast iron pipe claim example, you can see the value that a good public adjuster can bring to your claim.
95% of public adjusters would never be able to piece this all together and probably would have told the insured she has no claim or only $10,000 in coverage due to a Water Damage Limit.
If you have a cast iron pipe claim and need professional help to handle this type of claim to make sure you maximize your payout, give me a call or email me.
Mike (754) 252-5438