What to Do About Commercial Property Leaks

3/27/2019 (Permalink)

Water damage caused by leaky pipes can cause severe property losses for local businesses. Whether the water is slowly seeping from a loose fitting or is suddenly gushing from a burst frozen pipe, commercial property leaks can prove disastrous for the overall local economy.

The good new is: many types of leaking water damage are covered by commercial property insurance policies.  Unfortunately, not all leaks are covered.  So, it’s good to know how to be prepared.

Here at SERVPRO of Eatontown / Long Branch we know how important it is to keep local businesses up and running. That’s why we’re trusted by so many business owners in this community to help deal with water damage and restoration issues.

To help you understand how to deal with leaks at your commercial property, here’s a helpful guide explaining what kinds of water leaks are typically covered by commercial property insurance policies, and what kinds of leaks are not:

Covered

1. Sudden Events

If a leak is caused by a pipe or other appliance, such as a water heater, that suddenly breaks, any damage to your commercial property will likely be covered under your insurance policy.

Note: commercial property policies generally don’t cover damage resulting from a backed-up drain, sewer or sump pump. However, it is often possible to purchase additional sewer backup coverage if you are concerned about that issue.

2. Fire System Damage

While commercial property policies generally won’t cover the repair costs to most broken appliances, they often will cover the cost to replace or repair any damaged parts of a fire protective system, such as a sprinkler. 

3. Building Restoration

Most water pipes are hidden inside walls, ceilings, and floors, so when a leak occurs, it will often be necessary to tear out a piece of the building in order to repair the pipe.

The good news is, many commercial property insurance policies will cover the costs to restore those parts of the building that had to be removed in order to repair the leak.

Not Covered

1. Slow Leaks

Many commercial property insurance policies will not cover damage caused by water that has been leaking continuously for 2 weeks or more.

For this reason, it’s important to be proactive about maintenance and vigilance regarding potential leaks.  Sometimes a leak can be so slow that no harmful damage occurs until months have passed, so you need to be on the lookout for even the smallest indications of a leak.

2. Frozen Pipe Leaks

It’s common for many insurance policies to contain a “freezing” exclusion so that any damage caused by a frozen appliance or liquids that freeze will not be covered.

However, there are often exceptions.  For example, if you can demonstrate that you did your best to maintain adequate heat in the building, if the frozen pipe was caused, say, by a sudden power outage, you may still be able to qualify for coverage.

If the worst should happen and you do need water damage restoration, we can help you ASAP. Here at SERVPRO of Eatontown / Long Branch, we pride ourselves on being “faster to any disaster” with the best technicians and equipment to restore local businesses in this community. We’ll even help work with your insurance provider.