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Water Left Running in Vacant Homes

A faucet, hose, or tub is left running in a home that is for sale, between tenants, or being watched by a family member. No one is there to notice, so the water runs for days. Losses are often large. If your insured left it running, it is usually an accident with no recovery. If a real estate agent, a showing buyer, a tenant, a contractor, a property manager, or a family member who is not on the policy left it running, there may be a recovery.

What it coversReal estate agents, lockbox logs, inspectors, tenants, family members

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 out who was last inside, and when
Pull the lockbox or smart lock access log right away. These logs can be erased.
Ask who had keys or codes: agents, tenants, contractors, cleaners, family

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 every person on the access log after the last known dry visit
Notify the listing brokerage and the showing agent's brokerage
Ask each party for their insurance information

Investigate

Get the water bill and meter data to date when the water started
Get the showing schedule and feedback from the showing service
Photograph the fixture and handle position before anyone touches it

Demand, negotiate, and settle

Send the demand packet
Follow up, then send the second demand if needed
Review the release, pay the deductible, and close

1. Identify

How these losses happen

A buyer or agent turns on a faucet or tub during a showing and leaves it on
A home inspector runs water to test fixtures and does not shut it off
A tenant moving out leaves a hose or faucet running
A contractor or cleaner leaves water on, or leaves a line disconnected
A family member checking on the home leaves water running
Heat turned off in a vacant home leads to frozen and burst pipes

Is there anyone to recover from?

What you find	Who may be responsible
Your insured left it running	Usually no recovery
Showing agent or buyer on the access log	The agent and their brokerage
The home inspector ran the water	The home inspector
A tenant left it running at move-out	The tenant
A contractor, cleaner, or stager left it on	That company
A property manager shut off the heat or missed checks	The property manager
A family member not on the policy left it running	That family member, through their own homeowner's or renter's policy

Family members: check who counts as an insured on the policy. A relative who lives in the household is usually an insured, so there is no recovery. A relative who lives somewhere else is not, and their own policy may pay.

2. Notify and investigate

Evidence checklist

Lockbox or smart lock access log, pulled right away
Showing service schedule (like ShowingTime) and agent feedback
Listing agreement and any vacancy or property check terms
Water bill, meter readings, and smart meter data
Photos and video of the fixture and handle position
Lease and move-out inspection, if it was a rental
Contractor, cleaner, or inspector invoices and visit dates
Mitigation records showing the moisture readings

Mitigation caution: sometimes the mitigation company makes the damage worse by not drying the home properly. Document this clearly with their daily readings and photos.

3. Demand, negotiate, and settle

Liability theories: negligence, breach of the listing agreement or property management contract, breach of the lease, and negligent inspection.

Defenses to expect

Defense	How to answer it
Many people were in the home	Narrow it with the access log and meter data to find who was inside when the water started
The owner should have checked the home	A vacant home is not a license to leave water running
The owner should have shut off the water	Check the listing and vacancy terms. Many agents need water on to show the home.
Our inspection contract limits our liability	Read the limit. Many only cover the fee, but some courts do not enforce them for property damage.
The policy's vacancy clause applies	That is a coverage question between your company and your insured, not a defense for the party at fault

4. Letters for this loss

Step	Letter
Identify	Subrogation Opening Letter to Insured
Notify	Notice of Subrogation Interest and Insurance Request, to Adverse Carrier
Investigate	Evidence Preservation and Joint Scene Exam Notice
Demand	Subrogation Demand to Adverse Carrier
Negotiate	Second Demand with Escalation Notice
Settle	Release Review Checklist, Deductible Reimbursement

Related guides: Supply Lines, and Water from a Neighbor's Home.