Understanding Flood Damage and Insurance Denials: A Chicago Renter’s Experience
Navigating insurance claims can be complex, especially when dealing with unexpected property damages. Recently, a Chicago renter faced challenges in securing coverage after a flooding incident and shared their experience to highlight the intricacies involved.
Scenario Overview
The renter was occupying a fully furnished basement unit in Chicago under a two-month lease. On July 7th, between 9:00 am and 12:00 pm, a flood occurred, causing significant damage to the property. The incident resulted in the unit being deemed uninhabitable, leaving the renter without a home.
Insurance Details and Response
The tenant’s insurer is Assurant. In communication, the insurer cited specific policy exclusions related to water damage. According to their statement, coverage does not extend to damages caused by flooding—specifically, surface water, storm surges, tidal waves, and similar events. They emphasized that unless the damage stems from a covered peril, such as a burst pipe, the policy would not cover the loss of use or property damage caused by the flooding.
The landlord’s report, based on a plumber’s assessment, indicates that the water was sewage from toilets, which complicates the situation further. The water intrusion woke the tenant abruptly, prompting immediate action to protect belongings from damage.
Current Status and Challenges
The insurance company has confirmed that the flooding falls under excluded perils, and as a result, a claim for coverage has been denied. The property owner has officially declared the unit uninhabitable, and the tenant is now without housing. The temporary accommodation—initially a hotel—has run out, leaving the renter facing significant financial strain, with costs reaching approximately $2,000.
Request for Assistance
This situation highlights the importance of understanding policy exclusions and the impact they can have in emergency situations. The tenant is urgently seeking guidance and support to avoid homelessness and navigate the next steps in addressing the damage and potential insurance options.
Final Thoughts
If you are renting and have concerns about coverage for water-related damages, carefully review your policy’s exclusions. In the event of flooding, especially if caused by sewage backup or overflow, additional coverage or specific endorsements might be necessary. Staying informed and prepared can help protect you from financial hardship during unforeseen emergencies.
For those facing similar issues, consulting with a legal professional or an insurance expert can provide clarity and assistance in asserting your rights and exploring all available resources.
