When a property suffers damage, elevated utility costs are often a significant component of the overall financial impact. Claims for utility usage that exceeds normal consumption can be difficult to prepare and justify, yet they’re essential for a complete and accurate recovery.

From the continuous electricity needed to power drying, heating, or cooling equipment, to the spike in water consumption during cleanup and restoration, utility claims can involve electricity, water, or any other utility costs that rise as a direct result of property damage.

1. Documentation Matters

To build a strong claim, utilities in excess of normal need to be supported by clear, organized documentation that include:

Pre-loss utility statements: to establish the baseline of normal usage.

Loss period utility statements: to capture the increased costs directly tied to the loss.

Post-loss utility statements: confirm when usage returns to normal.

Pitfall to Avoid:

Don’t underestimate the importance of a single utility statement. Missing even one bill can prevent the entire utility in excess claim from being completed or can cause the claim to be calculated incorrectly. Every utility statement is needed.

Pro Tip:

Provide and review every utility statement you have, even if you think it’s irrelevant. Claim experts would rather review extra documentation than be left with gaps that slow down the claim process.

2. Valiont’s Proven Approach

At Valiont, we simplify a complex process into a clear, defensible claim. Our process involves: First reviewing pre-loss utility statements to understand typical consumption patterns. Second, evaluating usage during the loss period to identify the portions of water/electricity that increase specifically because of the loss, restoration and recovery activities. And third, assessing post-loss statements to ensure usage levels have stabilized to typical consumption.

Through detailed comparison, and using an average-based analysis, Valiont determines the precise cost of utilities in excess of normal. The result is a precise, defensible claim package that maximizes recovery.

Accounting Insight:

The portion of expenses that exceed what would have been incurred under normal circumstances is what’s being calculated. Insurers aren’t paying for the whole bill, just the measurable “excess” directly caused by the cause. The excess is determined using an average-based comparison of the pre-loss, loss-period, and post-loss utility statements to establish what “normal” usage should have been, and what's the excess.

Pro Tip:

Maintain at least 12 months of utility statements in a central file. By keeping everything organized and accessible, you’ll already have most of the documentation ready if a loss occurs. Having a complete history makes it much easier to ensure a smooth, hassle-free claim.

3. The Outcome

With Valiont managing the process, every detail is accounted for. By analyzing all the utility statements, we turn complex utility records into straightforward, well-supported claims, ensuring that additional utility costs are accurately measured and fully recovered within the confines of what is allowed by the policy.

4. Final Word

Utilities in excess of normal may not be a visible aspect for structural damage, but they still represent financial impact. The key to recovering these costs is simple: collect every utility statement – pre-loss, during the loss, and post-loss. Without the complete set of utility statements, it becomes difficult to complete the claim in a timely manner. Missing statements can cause back-and-forth requests that slow down the process. By properly gathering all utility statements up front, the process is smooth and efficient.

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This blog is for informational purposes only and does not constitute legal, financial, or insurance advice. Cara Solutions DBA VALIONT makes no representations or warranties as to the completeness or accuracy of the information provided. Always consult your legal, insurance, or financial experts before making decisions.