Frozen Pipes

Step-by-step checklist

Identify

• Contact the claim adjuster right away. Ask them to hold the scene and for permission to retain an expert at the client's expense. Note the call in the file.
• On every claim, ask the client whether they want an origin and cause investigator to review the scene, or confirm one is already assigned. Note their answer in the file so the decision is on record.
• Make sure no evidence is touched or moved until the expert has secured the scene
• Get the client's approval for the scene exam cost. Most run at least $1,600 with travel, the day rate, and expenses.
• Find the exact pipe that froze and where it runs
• Find out why the space got cold: heat off, heating failure, open door or window, missing insulation
• List everyone who had a duty to keep the building heated or monitored

Hands off until the expert arrives. Nothing at the scene gets touched, moved, repaired, or thrown out until the origin and cause investigator has secured it. Evidence that's moved early can sink the whole recovery.

Notify

• Notify property managers, contractors, HVAC service companies, and monitoring companies
• Notify their carriers
• Save the broken pipe section and the thermostat

Investigate

• Hold a scene exam before repairs
• Pull outdoor temperature records for the days before the loss
• Get utility bills and any smart thermostat history
• Review service contracts and monitoring contracts for waivers

Demand

• Review payments and out-of-pocket costs
• Sort the supports into photos, estimates, invoices, and reports
• Send the full demand packet

Negotiate

• Keep every party on notice until the cause is clear
• Follow up, and use a tolling agreement if the deadline is close
• If liability is accepted, negotiate. If not, review for ADR.

Settle

• Review the release
• Receive payment, issue the deductible and client payments
• Final file review, then close

1. Identify

Common frozen pipe losses

Responsible parties to consider

• Property managers, caretakers, and landlords
• Contractors who were working in the building
• The HVAC company that last serviced the heating system
• Fuel delivery companies on an automatic delivery plan
• The plumber or builder who installed the pipe
• Alarm and monitoring companies
• Tenants, when the lease makes them responsible for heat

Timing and temperature are your first clues

Build a timeline: when the weather turned cold, when the heat was last confirmed on, who was in the building, and when the water was found.

2. Notify and investigate

Check the contracts early

Alarm and monitoring contracts very often include a waiver of subrogation or a small liability cap, and courts usually enforce them. Read the contract before spending money on experts. Property management agreements and construction contracts may have waivers too.

Who to put on notice

• The property manager or caretaker
• Any contractor who worked in the building before the freeze
• The HVAC service company and the fuel company
• The alarm or monitoring company
• Their liability carriers

Evidence checklist

• The broken pipe section and fittings
• The thermostat, and any smart thermostat or sensor data
• Outdoor temperature records
• Utility and fuel delivery records
• Heating service records
• Alarm company event logs and call records
• Property management inspection logs
• Photos of the pipe location, insulation, and any open doors or windows

3. Demand, negotiate, and settle

Liability theories

• Negligence in failing to keep the building heated or checked
• Breach of a property management, service, or delivery contract
• Faulty installation, including code violations
• Failure to monitor or alert

Defenses to expect

Negotiating and settling

• Several parties may share fault. Keep them all on notice.
• Review the release with the release checklist.
• Close with the standard closing letter and the deductible reimbursement letter.

4. Letters for this loss

Sources

• Frozen pipe subrogation (MWL)
• Alarm company waivers and frozen pipes (SDM)