Claims Advocacy Expertise Secured a $124K+ Settlement Increase Through Water Damage Reclassification

Discover how strategic claims advocacy turned an initial water damage assessment into significant additional coverage for proper remediation.

The Situation

A manufacturing company experienced extensive water damage from a burst underground fire suppression system. The initial insurance carrier assessment threatened to limit coverage through an incorrect damage classification, potentially leaving the client with inadequate remediation coverage.

Why They Needed Change

The initial Category 2 classification, according to Institute of Inspection, Cleaning and Restoration

Certification (IICRC) standards, would have severely limited the scope of remediation to basic water

extraction, surface cleaning, drying and dehumidification, and sanitization. This level of remediation was insufficient for the actual damage, which required complete removal and replacement of flooring systems and affected building finishings.

Key Wins

$124,767 Settlement Increase

Increased the total settlement from $498K to $623K through expert advocacy.

25% Increased Insurance Payout

Locked in an additional 25% insurance settlement through a successful classification challenge.

Complete Remediation

Secured approval for a comprehensive Category 3 restoration classification.

The Cottingham & Butler Approach

 1. Comprehensive Damage Assessment

Our process began with a thorough evaluation of the water damage and the initial classification. The analysis soon identified:

- True extent of contamination

- Long-term remediation requirements

- Insufficiency of settlement offer compared to actual remediation needs

2. Strategic Classification Challenge

Based on IIRC’s water categorizations, we challenged the original Category 2 classification with the

supporting evidence of:

- Black water–the highest level of contamination

- Harmful pathogens and toxins

- Professional water damage removal needs

3. Enhanced Remediation Implementation

Approval for a Category 3 restoration classification was secured, along with the revised estimate from

the insurance company, allowing for the following remediation:

- Complete removal of affected flooring

- Thorough cleaning and sanitization

- New flooring system installation

- Replacement of affected building finishes