Understanding Insurance and Water Damage Claims in Chicago

Why Fast Action Matters

If water damage strikes your Chicago-area home or business, immediate action is essential. According to FEMA, mold and mildew can begin growing in as little as 24 to 48 hours after water intrusion. Delaying cleanup or insurance reporting can lead to increased damage and more costly repairs.

Whether it’s from a burst pipe, appliance failure, or flooding, one of your first calls should be to your insurance company. Most insurers offer 24/7 claims hotlines to help you start the process right away.

Working With Your Insurance Agent and Adjuster

Your insurance agent plays a critical role in ensuring timely claim processing and advocating for you. While you can report a claim directly to your insurer, your agent helps monitor the response, assist with settlements, and coordinate communication between you and the carrier.

Once your claim is filed:

• An adjuster will visit your property to document damage, take measurements, and photograph affected areas.
• The adjuster will estimate repair costs and determine whether another party (e.g., a contractor or manufacturer) may be liable.

Who Is Responsible for the Water Damage?

Even if the damage resulted from your oversight (like forgetting to turn off a faucet), insurance typically covers it unless it was intentional. For example:

• User error: If you mistakenly cause water damage while attempting a DIY repair, your policy still applies.
• Third-party fault: If damage was caused by a licensed contractor’s mistake or a defective appliance, your insurer may pursue recovery from that party’s insurance, potentially sparing you from paying your deductible.

Understanding Actual Cash Value vs. Replacement Cost

Your settlement depends on your policy type:

• Actual Cash Value (ACV) — covers the depreciated value of damaged items at today’s worth.
• Replacement Cost — covers the cost to repair or replace with new items of similar quality, without depreciation.

Sometimes insurers hold back part of the payment (called depreciation holdback) until you provide proof that funds were used for repairs. This may require submitting receipts, canceled checks, or bank statements.

Handling Settlement Checks

Most settlement checks are made out jointly to you and your mortgage lender. Your lender’s Loss Draft department must endorse the check before funds are released — a safeguard to ensure repairs are completed properly. A post-repair inspection may also be required.

Why Hire a Professional Restoration Company

Proper water damage restoration involves more than just removing water. Trained professionals:

• Extract standing water
• Fully dry hidden moisture
• Prevent mold growth
• Ensure structural integrity

For reliable service, demand proof of IICRC certification, insurance, and positive references. ServiceMaster Restoration By Simons offers water damage restoration backed by 40+ years of experience in Chicago.

FAQs — Water Damage Insurance Claims in Chicago

Q. What’s the first thing I should do after water damage?
A. Call your insurer’s claims hotline, document the damage, and contact a licensed restoration company to start mitigation.

Q. Will my insurance cover all water damage?
A. Most policies cover sudden and accidental water damage, but not gradual leaks or flood-related damage (unless you have flood insurance).

Q. What’s depreciation holdback?
A. It’s the portion of your settlement withheld until you show proof that repairs were made.

Q. Can I choose my own contractor?
A. Yes. While insurers may recommend contractors, you can choose a qualified, licensed firm like ServiceMaster Restoration By Simons.

About ServiceMaster Restoration By Simons

ServiceMaster Restoration By Simons is a trusted leader in disaster restoration throughout Chicago, the North Shore, and DuPage County. We provide water damage restoration, fire damage cleanup, mold remediation, smoke odor removal, and specialty cleaning. Our team is IICRC-certified and a proud member of the Restoration Industry Association (RIA). For help with water damage or insurance claims, call 773-376-1110 or visit https://servicemaster-restorationbysimons.com.