First time flip - water damage disaster - ADVICE PLEASE

[Andrew Pandolfino]

I am new to BP and real estate.  A friend of mine who has not yet joined BP and is also new just completed construction on his first flip a couple of weeks ago.  Last night he checked on the house and walked into a disaster...

With the cold weather conditions we have had in NY, a faulty coil in the furnace, a pipe burst in the attic.  By the time he checked on the house the water had already damaged every level of the house and reached the basement with a few inches of water.

He wants to take action asap but not sure if he needs to bring insurance in before starting.

Has anyone been through a similar scenario or have knowledge on how to handle this situation. If you can, please help.  

[David P.]

Andrew, yes bring the insurance into prior to doing anything - except turning off the water at the source!

The insurance company will assess the situation and either recommend/hire companies to take care of the situation.  He may even be compensated for lost rent (which will probably cover his deductible).  

Additionally, he should make sure to take photos and video of all damage as proof of damage before the insurance company gets there.  This does happen, but anything he does maybe misconstrued by the insurance company.  Play it safe and let them decide what is best!  

I have a friend who works with such companies that do this type of work and often times they can mitigate mold prior to it actually happening.  He says most people don't know how to properly handle water damage and the property can develop issues in the future. 

Either way it is best to involve the insurance company to ensure it gets done right!