NewsLeak

A Buffalo, New York, couple and water company agreed on a cash settlement after a seven-year disagreement. The two parties were arguing over an incident that took place in February 2005, when the Erie County Water Authority accidentally broke a pipe on the family's property. After the workers told the family they would not help them with fixing the pipe, which was several hundred feet from the couple's property.

After the family refused to fix the leak, they were handed a high water bill – $4,000 – and the authority shut off service to the home so the family went without water for five days.

While the exact amount given to the couple is unknown, it is thought to be under $100,000, according to the Buffalo News. Although the case is now a part of the past, the family is not satisfied. In fact, they are frustrated that the Water Authority never apologized.

"No amount of money makes it right," Steven M. Cohen of HoganWillig, the family's lawyer, told the Buffalo Times. "All they ever wanted was an apology, and they didn't get it."

The family is not alone when fighting to not pay for the cost of high water bills. A Las Vegas community recently challenged its district when homeowners began to receive water bills higher than they'd ever seen. The community's high bills were from a water reader device; however, and those affected will be compensated.

Water damage can cause unwanted stress and costs to the people affected. Most people don't worry about being a victim of water damage, however, water damage is the No. 1 cause of home insurance payouts in Canada, according to Henry Blumenthal, vice-president of TD Insurance.

Blumenthal told The Globe and Mail that water damage accounts for more than 50 percent of all losses covered, twice as much as one decade ago.

“We see that for two reasons. The frequency of storms is higher than before, and it’s combined with the fact that Canadians are equipped with more and more finished basements, containing more expensive things,” Blumenthal told The Globe and Mail.

Cases of large-scale flooding are generally compensated by the provincial, municipal and federal funding.

In smaller cases, if a bathtub overflows or a pipe bursts, standard home insurance coverage will take care of it. A backed up sewer can also be covered, but it is an extra amenity that needs to be requested.

So while getting ready for summer, homeowners should make sure to check all of the terms of a policy to make sure they are covered as they need. It is best to act quickly if any of these situations should arise so they don't end up spending a lot of money fixing the plumbing of a home or cleaning up.