Frozen pipes. Sprinkler line failures. Mechanical room leaks. When a pipe bursts in a commercial building, the damage is rarely “just water.” It’s business interruption, tenant disruption, inventory loss, mold risk, and costly tear-out—often on a clock.

Lundquist Law Firm handles one thing only: property insurance disputes for policyholders. If your commercial property insurer is delaying, underpaying, or denying a pipe burst or water damage claim, we can help you pursue full payment under your policy.

Talk to an experienced commercial property insurance lawyer. If you’ve received a low estimate, “below deductible,” delay, or denial, we can review your decision letter and claim strategy. Give us a call at (346) 704-5295, or Contact us.

Freeze Alert (Texas): Winter Storm Fern

When temperatures drop—especially during events like Winter Storm Fern—pipe burst losses spike—especially in older buildings, vacant spaces, exterior walls, and sprinkler systems. If a burst happens, what you do in the first 24–72 hours can make or break the claim.

Don’t let the insurance claim become a second disaster

Commercial water losses are frequently underpaid because insurers:

• minimize the scope (only pay for “what’s visible”)

• underpay drying, demo, and specialty trades

• deny “tear-out” or access costs

• dispute mold prevention/containment measures

• reject or reduce business interruption / extra expense

• argue “wear and tear,” “maintenance,” or “repeated seepage” to limit coverage

If you’re hearing any version of “that’s not covered” or “that’s all we’re paying,” it’s worth getting the policy and claim file reviewed.

We focus on commercial owners, including hotels, retail centers, office buildings, industrial sites, multi-tenant properties, and HOAs/condo associations.

What commercial policies may cover after a pipe burst

Every policy is different, but commercial policies commonly provide coverage for:

Building + tenant improvements—Repairs to walls, flooring, ceilings, electrical, millwork, and buildouts—plus necessary demolition and restoration.

Contents / inventory / equipment—Damaged stock, equipment, furniture, and in some cases specialized items (subject to limits and documentation).

“Tear-out” and access—Costs to open walls/ceilings/floors to reach a failed pipe and repair the system (coverage varies and is heavily disputed).

Business interruption and extra expense—Lost income and increased costs to keep operating (temporary space, overtime labor, expedited shipping, etc.).

Coverage questions move quickly after the first inspection. Getting your claim framed correctly early can prevent the insurer from locking in a narrow scope.

Common causes of commercial pipe bursts and water losses

Commercial water damage often comes from:

• frozen pipes (especially exterior walls, attics, vacant units, and poorly insulated lines)

• sprinkler system failures and fire suppression leaks

• failed water heaters, boilers, HVAC drains, and mechanical room components

• corrosion, rust, and joint/connection failures

• pressure events and sudden line ruptures

• roof drain backups and interior overflow events (policy-dependent)

The cause matters—because insurers often try to re-label a sudden loss as “maintenance” or “long-term seepage.”

What to do immediately after a pipe burst (claim-protecting checklist)

1) Stop the water and mitigate—safely

Shut off the supply, protect occupants, and get qualified mitigation help. Most policies require reasonable steps to prevent further damage.

2) Save the broken pipe (or failed component)

If the pipe/joint/valve failed, preserve it if possible. It can be critical evidence later.

3) Document everything

Take photos/video of:

• the source area (before repairs if possible)

• water migration paths (walls, ceilings, floors)

• affected units/tenants/contents

• equipment and mechanical rooms

4) Keep records insurers often demand

• mitigation invoices and drying logs

• moisture maps / readings

• daily job notes

• tenant communications and access issues

• business interruption documentation (sales, occupancy, reservations, payroll, etc.)

5) Report the claim promptly—and calendar deadlines

Commercial policies often contain strict notice requirements and suit limitation language. Waiting can invite denial arguments and create causation disputes.

When should a commercial owner involve an attorney?

Some claims resolve without a dispute. But counsel is usually warranted when:

• the insurer underpays or issues a “below deductible” outcome that doesn’t reflect the true scope

• the insurer delays, rotates adjusters, or demands repetitive documentation

• the insurer disputes drying/containment/tear-out as “not necessary”

• the claim involves multiple buildings, multiple tenants, or layered coverages

• business interruption is significant or being minimized

• the insurer pushes a fast, low settlement while the damage is still developing

Commercial pipe burst losses can become complex fast. Early legal involvement often helps prevent scope lock-in, deadline mistakes, and avoidable underpayment.

Commercial pipe burst claims are different than residential claims

Commercial properties often involve:

• multiple occupancies and competing access needs

• larger drying/containment scopes

• higher code compliance exposure

• specialty trades and long lead-time materials

• business interruption calculations that insurers aggressively challenge

If you’re managing a hotel, retail center, office building, industrial site, multi-tenant complex, or HOA/condo association, you need a strategy that matches the commercial reality.

Why choose Lundquist Law Firm for commercial water damage disputes?

• Property insurance disputes are the only area of our practice.

• Our attorneys previously defended insurance carriers in these exact disputes—so we know the playbook.

• For over 23 years, we’ve helped policyholders in disputed property claims, including water losses, and have obtained significant confidential settlements for clients.

• We have substantial experience in the Coastal Bend and across Texas, including experience litigating in front of local judges.

If your insurer is delaying, underpaying, or denying a commercial pipe burst claim, we can evaluate the policy, the scope, and the claim strategy.

Commercial Pipe Burst / Water Damage FAQ

How long do I have to report a commercial pipe burst claim?

Most policies require prompt notice, and some contain strict deadlines. The best approach is to report promptly and preserve evidence.

Why did the adjuster say parts of the damage aren’t covered?

Insurers often dispute whether damage was sudden vs. long-term, whether tear-out was necessary, or whether mitigation was “excessive.” These issues are frequently litigated.

What if the insurer says “repeated seepage” or “wear and tear”?

Those phrases are commonly used to limit coverage. Even when a policy excludes certain conditions, ensuing damage and other provisions can matter depending on the facts and the policy language.

Do I really need business interruption documentation?

Yes. Insurers often demand specific proof. Good documentation early can materially increase the value of the claim and reduce disputes later.

Talk with a Texas commercial pipe burst insurance claim lawyer

If you’re a commercial owner and your pipe burst claim is being delayed, underpaid, or denied—or you’re trying to get ahead of a freeze-related risk—contact us for a free consultation with an insurance lawyer. For more general information, see our main Practice Area page here: https://www.lundquistlawfirm.com/pipe-burst

Challenging an insurance company can be intimidating, but our experienced lawyers are committed to helping clients fight for compensation.