Plumbing Leak - Public Adjust or Eat it?

Question

Hi Guys,

Polar Vortex just rolled through [9 degrees with RealFeel -5 degrees] and may have resulted in a clogged drain line (possibly frozen?).  The leak went through the 2nd floor tenant's floor, dripped down to the 1st floor and created water seeping along the path of least resistance (i.e. the part that separates the giant drywall pieces).  This then dripped on the floor of the 1st floor tenant and into the ceiling of the basement.  I'm concerned about the level of insulation (or lack thereof) in the house and may require pipe insulation/house insulation in a four story home.  Also, not sure why a drain line would freeze either unless the original builder of 1912 didn't put a proper pitch in the waste line.  So that might need to be replaced.  I receive a call later from a public adjuster telling me all the pros of filing the claim through his company, should I go to insurance (Allstate) with public adjuster or eat the cost and that of the insulation project?  Also, would this increase my premium or ability to get insurance for future properties?  Thanks!

Brandon Cao · Answer

Hi Everyone, thanks for the responses.  I do appreciate the healthy debate between contacting insurance vs. eating the cost.  Makes me realize that everything is not black and white, but there is that grey area.

@Steve Babiak Thanks for your reference to Mike Mumma, I'll have to look into him if I do decide to go Public Adjuster.  As for the P-trap, I know where the "blockage" or frozen part was not near the P-trap of the sink.  Rather it seems that it was maybe 20 - 30 ft into the line within the walls.  The strange thing is that it doesn't affect the 1st floor tenants drainage either.  I always thought that they placed traps only at the fixtures, but this house is over a 100 years old.  Is it possible they placed traps at the end of a 4" waste stack?

@Ed O. I've been reading some of the other forum posts and I agree it seems risky to me IMO to bring in the insurer.  Other members were describing how it was difficult to get another property insured after 2 claims within 5 years.  That being said I have zero claims right now and also a no-claims discount from the insurance company and I don't want my premiums to rise.  Hiring a handyman to handle the job is seeming to be the next best resort.  He would do the ripping out of the drywall, possibly insulating the drain pipes if they were in fact frozen.  If the pitch or trap was in the wrong place I would hire a plumber to alleviate that situation first before insulating, then have the handyman patch up the drywall.

Account Closed It's interesting that you mention that the previous owner would be responsible if there were prior claims.  This property was the product of a flipper, however, I'm don't believe he actually updated any of the insulation or any plumbing on this side of the house.  I may decide to either eat the cost with a handyman or contact my own insurance to keep it simple on my end.

Xing Zhu · Answer

Can you just call your insurance company?

I filed a small claim for water leak recently. I was told that the insurance only pays if the damage was sudden, and if it was gradual then it  would be considered as a maintenance issue and they wouldn't cover. I was told by the contractor the insurance company recommended  that my case was on the borderline. The adjuster from the insurance company asked quite a few questions and finally decided to pay. The final bill is over $9000 and I paid $1000. I received a letter later that they increased my deductible from $1000 to $1500 due to this claim, but as a result, my premium might go down as they stated in the letter.

Brandon Cao · Answer

@Steve Babiak Thanks for your suggestion Steve!  I called Mike Mumma and he politely explained my options.  He was very unbiased and provided arguments on both sides of either filing a claim vs. hiring a handyman and absorbing the cost.  Here's a couple reasons why I won't be filing a claim in case those of you are curious:

1.) Insurance doesn't cover what wasn't there, i.e. if you had no insulation in the first place, they will not cover putting any in

2.) Believe I can hire handyman to repair for slightly more than my deductible

Side Note: Consider getting a Law & Ordinance part of your insurance might help cover any changing laws for your state and city.  If there was a peril that causes damage to your property, you might be able to use some of the funds to get your property back to code if the uncoded part was damaged.  Insulation obviously in my circumstance are not code, just an FYI for others. YMMV.  Thanks everyone!

Steve Babiak · Answer

I suggest you contact Mike and let him give you free professional input.

Ed O. · Answer

To me, a public adjuster is your last resort.

They charge 10% of what you get. Perhaps a little different, but in my market, that's the fee.

Is this a good deal? No way of knowing until you see how the insurance company assesses the damage. Based on what you have described, and not knowing the full, true extent of the situation, I would DIY it or bring in a handyman. It sounds like it could be fixed in a few days.

I don't think the insurance company is going to pay for insulation or a new drain to replace worn out, exhausted parts of an old house - I can't say this for sure, but don't know why they would. They would probably pay for the damage to the drywall and damage from the leak. The key takeaway from this for me, is get the place dried out asap to prevent further issues.

Also, if you've got cast iron or lead drains and are opening the walls to fix a leak, I would replace as much as possible with PVC. 
	 That said, see what your insurance company offers if you're going that route, before you contact the public adjuster. Also, remember that you can haggle the insurance company on your own as well.

Had I used the public adjuster that burned up my phone when I had a big claim, I'd be out 6k for him doing, literally, nothing.

Jerry W. · Answer

@Marvin Spears , I do not have any idea what you are referring to.  If I call a plumber, I pay him absolutely end of story, not someone else.  I would never be able to get a plumber if I told him a prior owner was at fault go find him and get paid.  If you are the owner it is your problem.  You can apply for insurance repayment, but I have never heard of lack of insulation, especially in an old house being a cause to sue someone.  Is there some law you have that is different?  I can even see suing over a new house if the builder had messed something up he would be liable.  Could you explain what you mean in greater detail?

Steve Babiak · Answer

Even when the drain pipes are properly pitched, the traps are always supposed to be filled with water and hence you have a point where the drain lines will naturally freeze if the space is insufficiently heated.

A public adjuster can be your friend. Try Mike Mumma with papublicadjuster.org