Few things are more frustrating than doing everything “right” after water damage—only to receive a settlement that doesn’t match real repair costs. Underpaid water damage claims usually happen for one of two reasons: the scope is incomplete (damage was missed) or the pricing/valuation is low (repairs are underestimated). Sometimes both.



All Service Adjusting explains that homeowners often need an advocate because insurer assessments can result in undervalued, delayed, or denied claims—often due to documentation gaps or technicalities.

Why water damage claims get underpaid

Here are the most common drivers behind low settlements:

1) Hidden water damage wasn’t included

Water can spread under floors, behind cabinets, and into wall cavities. If the initial inspection only addresses what’s visible, your repair plan may exclude real damage that later becomes obvious.

2) Drying and mitigation work isn’t fully captured

Proper mitigation can include extraction, dehumidification, air movement, antimicrobial steps, and monitoring. If this isn’t documented well, portions can be questioned or reduced.

3) The repair scope doesn’t match local building reality

A “partial” repair scope can fail to address what actually must be removed and replaced to restore the home properly—especially when materials are continuous (flooring runs, matching cabinets, paint blending, etc.).

4) Pricing and depreciation assumptions are too aggressive

Line items can be priced low, quantities can be short, and depreciation can be applied in ways that don’t match policy language or the true condition of the home.

What to do if your water damage claim is denied or feels short

If you suspect your settlement won’t restore your property, focus on building a stronger claim file:

• Request the carrier’s estimate and scope in writing
• Compare it room-by-room with what’s actually damaged
• Collect better evidence: photos, moisture readings, timelines, and repair recommendations
• Track out-of-pocket costs and temporary measures you took to prevent further damage
• Don’t rely on memory—turn everything into documentation

All Service Adjusting’s guidance around claim documentation and early involvement emphasizes preserving evidence and filing the claim correctly from the start.