Why am I only being offered a $10 payout for damage due to a pipe leak?

"A pipe connected to a hose in my backyard was broken and leaking water. When I called a repairman, he made a hole in my house to access the pipe. There was also some water damage to my ceiling. When someone from the insurance company came over to check out all the damage, they only offered to pay me $10. Why am I being offered so little?

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Answer
“It sounds like the insurance adjuster determined that the damage that occurred was not sudden and accidental. In order for water damage to be covered under your homeowners policy, it must be sudden and accidental — like from a pipe that bursts suddenly or from a ruptured hot water heater. If the damage occurred gradually over time, it would not be covered.
In either case, the actual cause of the water damage (in this case the pipe) would not be covered under most policies. You should contact the insurance company to find out their reasoning for offering only $10. “
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Shannon Martin
Answered on Apr 05, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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