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Board questions insurance handling after hydrant failure claim denial; approves district-level claims and payment of homeowner invoices pending appeal
Summary
After a hydrant-valve failure flooded a homeowner's crawlspace and the homeowner's claim was denied, the board voted to put the invoices on district bills, pay them and file a district-level claim to appeal the insurer's decision; members also pressed AWR and the broker for policy details and legal review.
A failed valve at a hydrant in Wickerfield sent water into a homeowner's crawl space and damaged a water heater and furnace. Operations staff reported the district promptly isolated the leak and paid emergency repairs for the resident; AWR filed the homeowner's claim with the district's insurer but the insurer denied coverage, stating the adjuster found no negligence by the district.
Chair questioned why the district did not file a district-level claim earlier and asked staff to obtain explicit policy language the insurer cited when denying the claim. The board approved a motion to place the homeowner invoices on the district's bills for payment and to file a claim on behalf of the district to appeal the insurance denial. "Do what's right and fix it," the chair said when instructing staff to address the resident's damage immediately.
Separately, directors debated the district's 2026 property and flood-insurance renewal. Staff reported an increase in the quoted premium related to address and policy changes and that some renewal checks were misrouted, which contributed to reinstatement issues. The board directed AWR and the broker to investigate and asked legal counsel to review the district's options and whether the district or AWR should bear any premium delta caused by administrative error.
