Overview of securing $3.3M after a pipe burst for a North Dakota hotel
In January 2024, extreme cold in Minot, North Dakota caused a 4-inch pipe burst at a local hotel, damaging 20 guest rooms and disrupting business operations. The insurance carrier initially acknowledged coverage—but soon reversed course, blaming the incident on the sprinkler system maintenance company, canceling the policy, and alleging a coinsurance penalty.
Despite the carrier’s complete denial, the Premier Claims team stepped in to advocate for the policyholder, conducting a forensic inspection and comprehensive policy analysis that shifted the outcome entirely.
Location: Minot, North Dakota
Date of Loss: January 2024
Overcoming Pipe Burst Claim Challenges
What began as a straightforward coverage acknowledgment quickly turned into a complex dispute. The carrier:
- Alleged that a third-party maintenance company was at fault.
- Claimed the insured was subject to a coinsurance penalty.
- Proceeded to cancel the policy after the claim was filed.
This left the hotel with significant physical damage, loss of room revenue, and uncertainty about their right to recover.
Our Approach
Premier Claims deployed a team of licensed adjusters, policy analysts, and forensic experts to investigate and document every detail of the loss.
- Independent Forensic Inspection: Our inspection confirmed the pipe burst resulted directly from severe weather conditions—not maintenance failure—aligning the cause of loss with covered peril language in the policy.
- Policy and Valuation Review: We reviewed the carrier’s own valuation documents to disprove their coinsurance allegation. Our analysis demonstrated that the insured values used by the carrier were consistent with policy terms and should not trigger any penalty.
- Evidence-Based Negotiation: With thorough documentation and clear communication, our team refuted the denial and reinstated coverage. We maintained transparency and professionalism throughout the process, focusing on factual findings and policy compliance.
Final Results of Pipe Burst Claim
Final Settlement: $3,316,000 for property damage, business interruption & contents.
Through persistence and precise documentation, Premier Claims successfully overturned the denial, ensuring the policyholder could begin full property restoration and recovery.