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Final Settlement: $20,000
Initial Incident
After evicting a tenant for non-payment, our client inspected their rental property and discovered significant water damage in the hallway bathroom and adjacent back bedroom. The tenant had never reported the issue: a broken toilet that had been leaking at the base. The water had been seeping from the toilet flange — meaning it was Category 3 (sewage-contaminated) water, not a clean water source.
The Insurance Company’s Response
The insurance company failed to identify the severity of the water loss. Their errors included:
- Incorrectly classifying the water as a Category 1 clean water loss
- Overlooking the presence of contaminated sewage water from the toilet flange
- Failing to include necessary demolition and sanitation procedures in the scope
- Offering a lowball settlement of $10,000 based on an incomplete and inaccurate assessment
How We Helped
Coast 2 Coast Adjusters stepped in and:
- Documented the true nature of the water source and explained Category 3 water loss protocols
- Presented a revised scope of work, aligned with IICRC guidelines for sewage contamination
- Educated the carrier on proper classification and its impact on required mitigation
- Negotiated a revised settlement reflective of the actual loss conditions
The Final Result
Settlement Achieved: $20,000
That’s a 100% increase from the carrier’s original offer — showing how the right knowledge and representation can make a major difference in your payout.
Conclusion
This case shows the importance of correct water damage classification. Insurance carriers often mislabel losses to minimize payouts. With Coast 2 Coast’s expert representation, the insured doubled their settlement and ensured the property was remediated safely and properly.
Initial Offer: $10,000
Final Settlement: $20,000
Total Increase: $10,000
Percentage Increase: 100%
