Hidden Water Damage: Uncovering Insurance Fraudulence
Insurance is a promise of compensation for specific potential future losses in exchange for periodic payments. When this promise isn’t upheld because of unscrupulous practices, it’s called insurance fraud. One such practice in the building insurance sector is the insistence on visible water damage for a claim to be processed, despite the fact that water damage isn’t always perceptible to the naked eye. You do need to check your policy, but in our opinion, refusing claims with no ‘visible’ damage is a form of fraud by the insurer, since there is damage, just not seen yet.
Water Damage: Visible Vs. Invisible
Visible water damage is the type we can easily observe. For instance, water stains on walls and ceilings, warped or swollen floorboards, or mold and mildew growth. On the other hand, hidden water damage is not immediately apparent and may exist behind walls, under flooring, or in other concealed areas of a building. Signs of hidden water damage can include unexplained dampness, musty odours, increased water bills or heating system drop in pressure.
The Fraudulence: Disregarding Hidden Damage
When an insurer stipulates that they will only consider claims based on visible water damage, it can be considered a fraudulent practice. This is because such a policy unjustly disqualifies legitimate claims based on hidden water damage.
Water damage does not always immediately manifest itself in ways that are visible. It can take time for the effects of water leaks or seepage to show up in visible areas of a property. During this time, significant damage may be occurring within the structure of the building. By ignoring this type of damage, insurers are effectively denying their customers the compensation they are rightfully due for the damages sustained by their properties.
The Repercussions
Insurers’ insistence on visible damage not only leads to financial losses for policyholders but also compromises the structural integrity of buildings. Hidden water damage can erode the building’s framework, causing severe and costly structural problems in the long run. Moreover, it can contribute to the growth of mold and other harmful organisms, which pose health risks for the building’s occupants.
Conclusion
In conclusion, while visible water damage is easier to identify, hidden water damage is equally, if not more, damaging to a property. Insurers who only acknowledge visible water damage claims are neglecting a significant part of their responsibility to policyholders. This practice is not only fraudulent but also potentially harmful, leading to substantial financial and health consequences. Hence, it’s critical for policyholders to be aware of their rights and to take action if they believe their insurer is acting fraudulently. UK Leak Detection can prove damage has occurred and assist in dealing with the insurer.