How Long Does a Water Damage Insurance Claim Take to Process?

A water damage insurance claim’s resolution can happen in either a few days or even take several months to process. However, the insurance companies are required to pay the losses in the timespan of 60 days of receiving the claim. 

Filing a water damage insurance claim can overwhelm you, and getting a clear timeframe for the same can put you at ease. But you don’t need to worry at all, as you’ll get to know about the time required for the water damage insurance claim process in this thorough blog post. So, let’s begin!

Immediate Notification

The process of a water damage claim settlement will begin the moment you notify your insurance provider regarding the loss that you’ve suffered. It is an important step which will happen within the first 24 to 72 hours of finding out about the damage. Reporting about the damage is important as it mitigates any further damage and even establishes the official date of loss. The insurer will assign a particular claim number and even a professional claims adjuster. 

Emergency Mitigation

After the initial notification, the emergency mitigation phase will kick in, which will focus on stopping the water source and drying the affected areas and may take one to two weeks. This work is usually done by a professional restoration company, which is approved by your insurer. You need to understand that it is not the repair phase but the important work which will prevent secondary damage, such as mould growth. This process will involve water extraction, dehumidification and the removal of damaged materials such as wet drywall and flooring. 

Initial Inspection

Once the claim has been reported, an insurance adjuster will be assigned to your file to investigate the loss, confirm coverage, and even ascertain the cost of repairs. The adjuster’s initial inspection will occur within the first three to seven days of the claim submission. When the adjuster is on the on-site visit, they will document the damage along with reviewing the mitigation steps and consulting with the restoration professionals. Their honest assessment will form the cornerstone for the financial settlement. 

Estimate Preparation

When the initial inspection is done, the most time-consuming step in the early stages will be to prepare a detailed repair estimate in two to four weeks. This estimate will list out what needs to be repaired or replaced to make your home look just as it was before. For big claims, it might involve contractors and specialists as well. The adjuster will work with the independent contractors to prepare this documentation. The process includes measuring the affected areas, pricing materials, and even calculating labour costs. 

Claim Approval

When the repair estimate is submitted to the insurer, the review and negotiation process will begin, which will conclude in one to three weeks! The adjuster will review the costs with respect to the industry standards and policy limits. In fact, the negotiations might be held with the contractor or the homeowner for the final price and scope. In Canada, regulations mandate that insurers must pay within a specific time period, generally 60 days from receipt of the claim. 

Payment Processing

When the claim is approved and the scope has been finalized, the process of payment processing will begin. The funds will be disbursed in different ways. In case the damage is significant, a homeowner might even get an initial advance, which is a partial payment that will cover emergency expenses and mitigation costs. However, the full payment for repairs is rarely released upfront and more often than not, funds are issued in installments. 

Property Valuation

Water damage extends a lot beyond the property’s structure, so the total time depends on different factors. So, another aspect of the claim requires creating a detailed contents inventory and even valuation. You are required to list each one of the damaged items with their age, original cost, and replacement cost. The adjuster will then review this list and calculate the full replacement cost. 

Repair Phase

The repair phase will begin once the scope has been approved and funds are released. This phase can take weeks to months. It is the longest duration component of the entire process. It’s dependent on contractor availability and securing building permits, along with the supply chain for particular materials. Minor water damage may take a few weeks, whereas extensive damage can take one to three months. 

Final Inspection

When the repair work has been carried out, there’ll be a final inspection, and the holdback funds will be released, but the time period varies widely. The adjuster might even conduct a final walk-through to make sure that the quality aligns with the approved scope. 

Final Words

The process of filing and getting your water damage insurance claim settled has many stages. A simple claim can be settled in four to six weeks, whereas a complex claim with huge reconstruction costs can increase the duration to three to six months. By understanding the stages mentioned above, you’ll be all set to get a quick settlement as per your needs.