Understand that there are several people who represent the insurance company during a claim, so you want to know where the decision is coming from. Was it your agent who told you, the insurance adjuster, or a contractor? Each person plays a different role. Don't be afraid to request clarifications to avoid misunderstandings. When a claim is denied, you will normally receive something in writing advising you of the official decision.
It’s important to understand the differences because Category 2 and Category 3 water present health risks to your employees and customers and need to be handled differently. The most likely sources of clean water would be water from a pipe, water heater, steam lines or even rainwater. The basic rule of thumb is that it should look and smell like tap water.
The first order of business in assessing water damage to the electrical equipment in any industrial plant is to gather all pertinent drawings and documentation available and perform a walkthrough of the entire electrical infrastructure. However, at times, drawings and documentation may not be available due to destruction (Photo 1). In this case, walkthroughs must be performed through tribal knowledge of plant personnel. Keep in mind the initial assessment is preliminary in nature, and an absolute understanding of the damage will not be gained until the equipment is disassembled in its entirety.
If you have to remove mold concentrations or perform any black mold removal covering more than a few square feet, where the musty odor is strong or where you find extensive water damage, we recommend that you take special precautions. You want to not only avoid contaminating the rest of the house but also protect yourself from breathing high concentrations of spores and VOCs.
Water damage can originate by different sources such as a broken dishwasher hose, a washing machine overflow, a dishwasher leakage, broken/leaking pipes, flood waters and clogged toilets. According to the Environmental Protection Agency, 13.7% of all water used in the home today can be attributed to plumbing leaks. On average that is approximately 10,000 gallons of water per year wasted by leaks for each US home. A tiny, 1/8-inch crack in a pipe can release up to 250 gallons of water a day. According to Claims Magazine in August 2000, broken water pipes ranked second to hurricanes in terms of both the number of homes damaged and the amount of claims (on average $50,000 per insurance claim) costs in the US. Experts suggest that homeowners inspect and replace worn pipe fittings and hose connections to all household appliances that use water at least once a year. This includes washing machines, dishwashers, kitchen sinks and bathroom lavatories, refrigerator icemakers, water softeners and humidifiers. A few US companies offer whole-house leak protection systems utilizing flow-based technologies. A number of insurance companies offer policy holders reduced rates for installing a whole-house leak protection system.