Water damage and Insurance

As owners and operators of senior living facilities, you understand the importance of protecting your properties and residents. Today, we'd like to discuss a crucial aspect of your insurance coverage: water damage protection.

Recent events like Hurricane Debby have highlighted the devastating impact of water-related incidents. It's essential to understand that not all water damage is automatically covered by your property policy. Let's break down five scenarios where your insurance typically provides coverage:

1. Flood Insurance: Standard property policies usually don't include flood coverage. For senior living facilities, especially those in flood-prone areas, we strongly recommend purchasing separate flood insurance. The coverage you need depends on your FEMA flood zone classification.
2. Sewer and Drain Backup: This isn't typically included in standard policies but can be added via endorsement. Given the potential health risks to your residents, this coverage is particularly important for senior living facilities.
3. Fire Suppression System Discharge: Most policies cover water damage from sprinkler system malfunctions. This is crucial for facilities with extensive fire suppression systems.
4. Plumbing, Heating, and Air Conditioning System Failures: Sudden leaks or ruptures are generally covered, but long-term issues aren't. Regular maintenance of these systems is vital in senior living environments.
5. Weather-Related Damage: This is often misunderstood. Coverage applies when a covered peril (like wind) damages the building's exterior, allowing water to enter. Proper building maintenance is key to preventing uncovered water intrusion.

It's important to note that water intrusion due to poor maintenance or gradual deterioration is typically not covered. For senior living facilities, this underscores the need for rigorous maintenance programs to protect both your property and your residents.  We often see this brought up when roofs are involved in the claim. 

Additionally, be aware that water damage from ground seepage is generally excluded from coverage. This is particularly relevant for facilities with basement levels or those in areas with high water tables.

As your insurance partners, we recommend:

1. Regularly reviewing your coverage to ensure it meets your facility's specific needs.
2. Implementing comprehensive maintenance programs to prevent water-related issues.
3. Considering additional coverage options, like flood insurance, based on your location and risk factors.

Protecting your senior living facility from water damage is crucial for the safety of your residents and the longevity of your operations. We're here to help you navigate these complex insurance matters and ensure you have the right coverage in place.

Please don't hesitate to reach out if you have any questions or would like to review your current policy. Your residents' safety and your peace of mind are our top priorities.

Stay dry and secure!