Property & Casualty Insurance/Water Damage


James, I have an insurance claim question regarding water entering a basement due to the outside faucet being left on. The insured turned the faucet on water did not come out due to it being frozen. The insured neglected to turn the faucet off and when the weather warmed the faucet thawed, ran for some time, thus water entered the basement causing damage to the carpet, ect. Question is, do they have coverage or does the ground water exclusion apply. The policy is a Farm Owners 3.  Thank you. Jeff

Jeff, I can answer part of your question, the groundwater exclusion does not apply. If, after reading the policy nothing else excludes the issue it would be covered. I can't be certain, but I would think it would  be a covered peril. Your damage would be covered if it happened inside the house. I don't know how or why it would be excluded based upon your circumstance. Many people make an error believing themselves to not be insured on many issues when it comes to damage caused by water. Coverages usually can be applied to the "lion share" of damage. Beware of insurance-speak: you call in a claim and mention my house suffered damage because my roof leaks, the agent correctly tells you that the roof damage happened slowly over a period of time and it is not covered. He would, of course, be correct the insurance company does not owe you for patching up your roof, but they most certainly owe you for all the resulting damage that the water did once it leaked into the house. The insurance company is not and in most cases will not offer that little caveat, and you've hung up the phone figuring you're liable for the cost of a serious repair bill............not!!!!!

Getting back to your particular situation I believe the damage to be covered, unless a specific exclusion of some type is in the policy, ground water is not the exclusion due to the fact ground water would be natural phenomena and this most certainly isn't. If I can be of further assistance please feel free to write back.

Good Luck,

Jim C

Property & Casualty Insurance

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James R Carrier


I'm an insurance adjuster. If you have had an insurance loss your in the right place. Insurance coverages is not my forte, you would want to ask one of the other experts who are insurance agents. I'm able to answer questions regarding coverage, damage valuation, basically anything to do with property & casualty. My expertise is accessing damage putting a valuation on that damage and proving damage to an insurance company adjuster on behalf of a homeowner or business owner. I'm able to answer or get the answer regarding underwriting. Please no questions on automobile coverage you know more than me in that area.


20 years as a licensed adjuster, handling 1000's of homeowners and commercial claims in Michigan, Louisiana, and Florida. I own a Public Adjusting Company, Advanced Adjusting LLC in Milford MI.

Business degree with an emphasis on accounting from Arizona State University, graduating in the Fall of 1984. I have taught and participated in continuing education courses in the field of property and casualty.

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