Airbnb Property – HVAC Overflow Water Damage

Final Settlement: $30,070.72

Short-term rental properties, especially themed vacation homes, often require higher maintenance and face unique risks. In this case, our insured owned a themed Airbnb investment property near popular attractions. A broken HVAC float valve led to major water damage — and the insurance company’s initial offer fell far short of what was needed for full repairs.

Initial Incident

The insured’s 2nd-floor HVAC unit experienced a float valve failure, causing water to overflow into the downstairs living areas.
The damage impacted:

• Ceilings, drywall, and flooring below the HVAC area
• Themed décor and furnishings throughout the rental unit
• The property’s ability to operate as a short-term rental

The insured promptly filed a claim, expecting a fair settlement for full restoration.

The Insurance Company’s Response

Despite the evident scope of water damage, the carrier:

• Offered a settlement of only $4,070.72
• Failed to account for damage to themed rooms and furnishings
• Ignored the cost of full restoration required for rental readiness
• Attempted to close the claim with a low and inadequate payout

How Coast 2 Coast Stepped In

After being retained, Coast 2 Coast Adjusters:

• Conducted a comprehensive inspection of both floors to assess all water damage
• Compiled detailed documentation including photos, itemized estimates, and repair costs
• Highlighted coverage for consequential interior damage caused by the HVAC failure
• Negotiated diligently to achieve a fair and complete settlement for the insured

The Outcome

Settlement Achieved: $30,070.72
This represented a 638.69% increase compared to the insurance company’s initial offer of $4,070.72.

Conclusion

Carriers often undervalue losses involving rental or investment properties — especially when unique interiors are affected. Thanks to Coast 2 Coast’s expertise and persistence, the insured’s settlement increased by over 638%, ensuring full restoration of the themed Airbnb and allowing it to return to service quickly.

Initial Offer: $4,070.72
Final Settlement: $30,070.72
Total Increase: $26,000.00
Percentage Increase: 638.69%