Pools, Spas, and Irrigation

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 failed part: heater, pump, line, fitting, valve, or controller
• Identify the installer, the service company, and the equipment makers
• Build a timeline of installs, service visits, and the loss

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 the installer, service company, and makers
• Notify their carriers
• Save the failed part and the controller

Investigate

• Hold a scene exam before repairs
• Get a leak detection report for underground or slab leaks
• Pull service records, permits, and water bills showing when use jumped
• Check for recalls on the heater, pump, or spa

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 known
• 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 losses

Responsible parties to consider

• The pool builder or irrigation installer
• The pool or landscape service company
• The makers of the heater, pump, spa, or controller
• An electrician or gas plumber who connected the equipment
• A neighbor, if their irrigation or pool is the source

Water bills are a great clue

A sudden jump in water use can show when a leak started, and whether it began right after an install or service visit.

2. Notify and investigate

Who to put on notice

• The installer and any service company that worked on the system
• The makers of the failed parts
• The electrician or gas plumber
• Their carriers

Evidence checklist

• The failed part, fittings, and controller
• Leak detection report and photos
• Install contract, permits, and inspection records
• Service records and invoices
• Water bills for the past year
• Recall notices
• Photos of the equipment pad, venting, and clearances

3. Demand, negotiate, and settle

Liability theories

• Negligent installation, including code violations on venting, clearance, bonding, and gas lines
• Negligent service or repair
• Product liability against the equipment maker
• Breach of contract or warranty
• Nuisance or trespass, when a neighbor's water damages the insured's home

Defenses to expect

Negotiating and settling

• Installers, service companies, and makers will point at each other. 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