You Thought You Were Covered For This!

It happens more often than you might think…. the sickening feeling in your gut as you walk down the stairs only to find your belongings bobbing in 18-inch-deep brownish water in your finished basement. Your thoughts rush to all the valuables down there– your computer equipment, the large screen television, the furniture and the wall to wall carpeting, not to mention the seasonal items and memorabilia, and on and on the list goes as you find yourself crying out…”How the heck do I deal with THIS?” And all you can conjure up are expletives and unanswered questions about the condition of all you have worked so hard for.

You’re not sure where to turn or what to do next….or HOW TO MAKE THIS GO AWAY!!

Upon regaining some rational thought, you typically discover that a sump pump malfunction caused this catastrophe. If you’re lucky, you remember that you took care of buying homeowners’ insurance some time ago, so you call your insurance company. What you may not be prepared for is the realization that you have little or no coverage for sump pump failure. This is SO COMMON. At Hammer Restoration, Inc. we see this scenario play out all too often.

Do you know that sump pump failure coverage is generally a special add-on or “rider” on your policy? If you have a quality insurance agent, you were probably advised to add this protection. If you purchase on-line, who knows? What we see in this day and age is property owners are frequently more concerned with saving money at the time they purchase their policies (on the often false assumption they will never have a claim). So they are thinking premium savings–not the cost to recover from a loss, and let’s face it, most homeowners figure if they have a policy they will be covered, right?

Well, in Michigan, most homes have basements. Most basements get used for storage, and many basements are finished for varying uses– family rooms, rec rooms, home offices, music rooms, bedrooms, and so on; and actually most basements are sadly lacking in adequate coverage in case of a loss.

How much coverage is advisable? Consider taking an inventory of all the things that have been added to the basement beyond the concrete walls and floor, and calculate the replacement value of each item. That number may shock you. Okay, so there is typically a furnace and water heater…possibly laundry appliances, internal and/or external walls with paneling or drywall, area rugs or wall-to-wall carpeting (with or without padding), furniture, electronics, storage shelves filled with seasonal items, sports, camping or hunting equipment, a workshop or hobby room, seasonal clothing, office equipment, etc.

Often, the first priority in the mind of the property owner following such a loss is the carpeting or the large screen television. But what about the even more important priority of returning the basement to a healthy usable space again? Water intrusion affects not only the floor coverings, but all surfaces it touches, including the hidden spaces like wall cavities where damage can continue to develop in severity if not properly attended to in a timely fashion. Dark wet spaces with a lack of air movement, moisture and cellular food sources such as wood, drywall, paneling, carpeting etc. are the perfect setting for mold to grow in as little as 3 days, sometimes even sooner depending on the temperature of the space and the water, such as a ruptured water heater or washing machine. If the water is contaminated with health hazards, such as sewage or harmful chemicals, the cleanup costs will escalate even more.

Placing air movement and dehumidification are helpful, but will that be able to adequately remove all the water before permanent or secondary damage occurs? Residential dehumidifiers lack the capacity to remove the extensive moisture caused by a major water intrusion. In order to return the damaged basement to its pre-loss condition, use and healthy environment, your best bet is hiring a certified professional restoration company. Why? Because of the industrial strength drying equipment, their ability to discover where all the wet spaces are, whether visible or hidden, and specialty drying techniques which may be in order due to extenuating circumstances. Depending on the severity of the loss, the square footage affected, the contamination level of the water, and the value of goods affected, the cost of proper remediation will generally run into the thousands. How many thousands depends on numerous factors, as previously mentioned.

We suggest you talk to your insurance professional and discuss the value of the items (both structural as well as furnishings and belongings) in your basement. Make a careful assessment to determine an adequate amount of coverage. Often insurance companies will limit the amount of coverage they offer, so you may want to shop around. Otherwise you may find yourself working hard for the next several years to replace what was lost in one unforeseen incident because you were under-insured. While you’re at it, consider the amount of the deductible in your policy as well. But that’s the topic of another blog.

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