Water Damage — Burst Pipe

Industry: Personal Lines / Homeowners

A homeowner returned from a 2-week vacation to find a supply line to the second-floor bathroom had failed, flooding the second floor and causing extensive water and mold damage throughout the first floor ceiling. The home had been unoccupied for 14 days.

Claim amount: $95,000

Outcome: Homeowners policy covered the water damage claim. The carrier initially raised the issue of the 14-day vacancy but the policy did not have a specific vacancy exclusion for this duration. Claim paid: $62,000 for structural drywall, flooring, and cabinetry replacement, $18,000 for mold remediation, $15,000 for ALE during the 6-week repair. Some policies have vacancy provisions that can reduce or eliminate coverage after 30–60 days.

Lesson: Automatic water shutoff devices (leak sensors + auto shutoff valves at main) are one of the most effective homeowners loss prevention investments — typically costing $200–$600 and potentially saving tens of thousands in water damage.