Michigan Water Damage Insurance Claim Attorneys | Liss + Earls

When your insurance company denies, delays, or underpays your water damage claim, our attorneys have the experience to hold them accountable.

water damage to Commercial buildings, structures and homes

Whether the damage comes from a burst pipe, a frozen plumbing line, a roof leak during a storm, a sewage backup, or a catastrophic flood inside a commercial building, the aftermath can be devastating. Structural damage, destroyed contents, mold growth, and the cost of temporary housing or business downtime add up quickly.

When you file a claim with your insurance company, you expect them to pay what your policy promises. Instead, many Michigan policyholders find their water damage claims denied based on policy exclusions, delayed for months while the damage worsens, or settled for a fraction of what it actually costs to repair the property.

At Liss + Earls, water damage insurance claims are a core part of our practice. For nearly 40 years, our attorneys have represented Michigan homeowners and businesses whose water damage claims have been wrongfully denied or underpaid. Our managing shareholder, Jason J. Liss, has spent over 30 years focused exclusively on property insurance litigation and is licensed in both Michigan and Ohio. Since 1986, our attorneys have recovered an estimated $500 million in verdicts, settlements, and insurance claim payments for our clients.

Why Water Damage Claims are So Heavily Disputed

Water damage claims have one of the highest denial rates of any property insurance claim type. The reason is the policy language itself. Most standard homeowners and commercial property policies only cover water damage that is “sudden and accidental.” That phrase gives insurance companies enormous room to argue that your loss does not qualify.

Insurers routinely deny water damage claims by arguing that:

The damage was caused by a “gradual” leak rather than a sudden event — even when you had no way of knowing the leak existed
The loss resulted from lack of maintenance — a common accusation used to shift blame from the insurer to the policyholder
The water came from a source that is excluded under the policy, such as surface water, groundwater seepage, or sewer backup without an endorsement
The mold remediation that followed the water damage is capped or excluded entirely under the policy

These are exactly the types of disputes our attorneys handle every day. We know how insurers use policy language to avoid paying water damage claims, and we know how to challenge those arguments effectively.

Types of Water Damage Claims We Handle

Burst Pipe and Frozen Pipe

Michigan winters regularly produce temperatures well below freezing, and burst pipes are one of the most common water damage events in the state. When a pipe freezes and bursts, the resulting water damage can affect walls, ceilings, flooring, electrical systems, and personal property throughout the structure. Insurance companies frequently deny frozen pipe claims by alleging that the policyholder failed to maintain adequate heat or did not take reasonable steps to prevent the freeze. Our attorneys challenge these denials by examining the actual circumstances of the loss and the specific policy language at issue.

Roof Leak and Storm Damage Water Claims

When wind, hail, or ice damages a roof and allows water to enter the structure, the resulting interior damage — to ceilings, walls, insulation, and contents — can be extensive. Insurers often attempt to separate the wind damage from the water damage, paying for the roof repair but denying coverage for the interior water damage. They may also claim the roof leak was pre-existing or caused by wear and tear rather than the storm. Our attorneys ensure the full scope of storm-related water damage is documented and included in the claim.

Sewage Backup and Pump Failure

Sewage backups cause some of the most damaging and costly water losses. Contaminated water destroys flooring, drywall, furniture, and personal belongings, and the remediation required is extensive. Many standard policies exclude sewer backup unless the policyholder purchased a separate endorsement. Even when the endorsement exists, insurers often dispute the cause of the backup or cap the coverage at amounts that fall short of the actual remediation cost. Our attorneys review the policy carefully and fight for the full amount owed.

Appliance and Plumbing Failure Claims

Water heater failures, washing machine hose bursts, dishwasher leaks, and toilet overflows can cause significant damage to flooring, cabinets, and the structure below. These losses are generally covered as “sudden and accidental” events, but insurers sometimes deny them by arguing that the appliance was old, poorly maintained, or that the damage occurred gradually. We ensure the insurer treats these claims properly under the policy.

Commercial Water Damage Claims

Water damage to a commercial property involves unique challenges — inventory loss, equipment damage, tenant displacement, and business income interruption all have to be accounted for. We represent commercial property owners, apartment complex owners, warehouse operators, manufacturers, and other business owners whose water damage claims have been denied or underpaid. Our attorneys have extensive experience with commercial water losses, including the business interruption and extra expense calculations that are often the most heavily disputed parts of the claim.

Large Loss and Catastrophic Water Damage Claims

Some water losses are catastrophic — a major pipe failure in a high-rise apartment building, a sprinkler system malfunction in a commercial warehouse, or widespread flooding inside an industrial facility. These claims involve millions of dollars in damages and require careful documentation, independent expert analysis, and aggressive litigation when insurers refuse to pay. Our firm has handled large-loss water damage claims throughout Michigan and across the country.

Common Issues in Michigan Water Damage Claims

The "Sudden and Accidental" Dispute

This is one of the most common reasons water damage claims are denied in Michigan. Insurers argue that the water loss was not truly “sudden”—that it developed over time, that the policyholder should have noticed it sooner, or that it resulted from ongoing maintenance issues. In many cases, the policyholder had no way of knowing the damage was occurring until it became visible. Our attorneys know how to challenge these arguments using the specific facts of each case and the applicable policy language.

Maintenance and Neglect

Insurance companies frequently deny water damage claims by blaming the policyholder for failing to maintain the property. A pipe breaks, and the insurer says it was corroded. A roof leaks, and the insurer says it was old. These denials shift responsibility from the insurer to the policyholder in ways that are often unreasonable and not supported by the policy language. Our attorneys push back on maintenance denials and hold insurers to the actual terms of the contract.

Mold Damage and Remediation Disputes

Mold growth is a common secondary consequence of water damage, and it can begin within 24 to 48 hours of a water intrusion event. Many policies cap mold coverage at a fixed dollar amount — often far less than the actual cost of professional mold remediation. Some policies exclude mold entirely. Understanding how mold coverage works under your specific policy, and whether the cap can be challenged, is critical to recovering the full cost of remediation.

Policy Exclusions for Flood, Surface Water, and Groundwater

Standard Michigan homeowners policies generally do not cover damage caused by flood, surface water, or groundwater seeping through the foundation. These exclusions are broadly written and insurers interpret them aggressively. If your property was damaged by water and the insurer is claiming a flood or surface water exclusion applies, it is important to have the cause of the water intrusion carefully examined. Not every water loss that enters from outside the structure qualifies as “flood” or “surface water” under the policy definition.

Delays That Make the Damage Worse

Water damage gets worse over time. Every day that passes without proper remediation allows moisture to spread deeper into the structure, promotes mold growth, and increases the cost of repairs. When an insurer delays the claims process — by failing to assign an adjuster, repeatedly requesting documentation, or simply not responding — the damage to your property compounds. Michigan law requires insurers to handle claims promptly, and our attorneys hold them accountable when they do not.

How Michigan Law Protects Policyholders in Water Damage Claims

Michigan provides strong statutory protections for policyholders in property insurance disputes, including water damage claims. Our attorneys use these protections in every case where they apply.

12% Penalty Interest Under MCL 500.2006

When an insurer fails to pay a property insurance claim within 60 days after a satisfactory proof of loss is filed, the insurer must pay 12% annual interest on the unpaid amount. On a significant water damage claim, this penalty interest can amount to tens of thousands of dollars per year — creating real financial pressure on insurers to resolve claims promptly rather than letting the process drag on while your property deteriorates.

Breach of Contract

Every insurance policy is a contract. When an insurer denies a covered water damage claim, underpays the loss, or refuses to honor replacement cost provisions, the policyholder can bring a breach of contract action to recover the full benefits owed under the policy, plus penalty interest and, in many cases, attorney fees.

What You Can Recover in a Michigan Water Damage Claim

When your insurance company wrongfully denies, delays, or underpays a water damage claim, you may be entitled to recover:

Full policy benefits — the complete cost to repair or restore your water-damaged property as provided under your policy

Contents replacement — furniture, electronics, appliances, clothing, and other personal property damaged or destroyed by water

Mold remediation costs — professional remediation where covered under the policy, including challenges to arbitrary caps

Additional living expenses (ALE) — temporary housing and related costs while your home is being repaired

Business interruption losses — lost income and extra expenses for commercial property owners forced to close during repairs

12% penalty interest — under MCL 500.2006, accruing from 60 days after your proof of loss was filed

Attorney fees and litigation costs — recoverable in many Michigan property insurance disputes

The specific damages available depend on your policy terms and the facts of your case. Our attorneys will review your situation and explain what recovery may be possible.

Why Choose Liss + Earls for Your Water Damage Insurance Claim

Nearly 40 years of experience — Our firm has been fighting for Michigan policyholders since 1986, formerly as Fabian, Sklar, King & Liss
Property insurance is all we do — We do not handle car accidents, divorce, criminal defense, or any other area of law. Every case we take involves a property owner fighting an insurance company
An estimated $500 million recovered for our clients — Including multi-million-dollar recoveries on water damage claims for apartment complexes, commercial buildings, and residential properties
We know how insurers deny water claims — “Gradual leak,” “maintenance,” “surface water” — we have heard every excuse insurers use to avoid paying water damage claims, and we know how to defeat them
Deep knowledge of Michigan insurance law — We know MCL 500.2006, the Uniform Trade Practices Act, and the case law that protects Michigan policyholders
Licensed in Ohio and in Select Large Value Nationwide Property Insurance Claims—our attorneys are admitted pro hac vice regularly to represent select clients
No fee unless we recover — We handle water damage cases on a contingency basis, so you pay nothing unless we win

Michigan Communities We Serve

We represent homeowners and businesses with water damage insurance claims throughout Michigan, including:

Detroit and Metro Detroit — Burst pipe claims, sewage backup disputes, apartment complex water damage, and commercial water losses
Farmington Hills, Southfield, and Oakland County — Residential and commercial water damage claims in our home county
Ann Arbor, Washtenaw County, and Southeast Michigan — Water damage claims for homeowners and businesses
Grand Rapids, Kalamazoo, and West Michigan — Commercial and residential water damage insurance disputes
Lansing, Flint, and Central Michigan — Water damage claims including industrial and manufacturing property losses
Northern Michigan and the Upper Peninsula — Statewide coverage for water damage claims of all sizes, including freeze-related losses

No matter where your property is located in Michigan, we handle the claim.

Public Adjusters: We Are Your Litigation Partner for Water Damage Claims

If you are a public adjuster working a water loss in Michigan and the insurer has denied the claim, invoked a maintenance exclusion, forced an examination under oath, or refused to pay fair value — we are here to help. Our attorneys work alongside public adjusters every day. We handle the litigation while you continue managing the adjustment. Learn how we work with public adjusters.

We fight insurance companies after your water damage insurance claim

Hire the attorneys who have recovered over $500 million for home and building owners, commercial real estate businesses and clients who are not being paid by their insurance companies after loss. Free consultation, representing clients throughout Michigan, Ohio and in select large value cases nationwide.