Water Damage Service Ends Litigation with State Farm Insurance

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Dryout Inc., a Florida company that specializes in water damage services nationwide, has agreed to drop a court case with State Farm Insurance.

Doing so prevents larger losses but insurance companies don't see it that way.

After a court battle that lasted several years, Dryout Inc. and State Farm Insurance have agreed to disagree. It all began with a $300 bill for water damage remediation that State Farm refused to cover. Two years of filings and motions along with a rotation of three judges and lawyer fees in excess of $50,000 have come to an end as both parties have decided to drop the case.

"Some things are worth fighting for when you're right," said Dryout's owner Mark Decherd. "We've changed the industry and have made drying out water damage an art form. The powers that be don't like it."

Decherd spent more than $25,000 in litigation fees to get a $300 bill paid, but State Farm also spent a great deal of money and manpower in the court case. A disagreement over an overflowed toilet stretched out for over two years with neither party winning the case.

"Insurance companies have severely limited their coverage for mold claims to the point of exclusion in many instances," said Decherd. "Mold can be prevented using water remediation technology but the insurance companies don't want to pay for that either."

Since insurance companies are reacting to mold concerns by excluding coverage, it's important for homeowners to find out exactly what's covered under their policy. Many policies cover mold cleanup and damage to the property if the mold is the result of a covered loss such as a burst pipe. Water damage remediation services such as Dryout can minimize the damage. "It makes sense to clean up the water right away and dry out the home," added Decherd. "Doing so prevents larger losses but insurance companies don't see it that way."    

Consumers should immediately contact their insurance company after a covered water loss and ask for assistance in drying out the flooded area. If their policy covers mold damage as a result of a covered loss, it's in their best interest to prevent the mold from occurring.

"Our company went head-to-head with State Farm and came out poorer but wiser," Decherd concluded. "We know that some things are worth fighting for."

Case Number: 99-SP-1105 Uniform Case Number: 361999SC0011050001CH Case Type: SC Damages CV Sub Case Type: Judge: Duryea, John E, Jr. Filed Date: 3/30/1999 Disposition: Order Disposition Date: 4/4/2001

For more information about water damage services, visit http://www.dryout.net

About Dryout Inc:
Dryout Inc. was incorporated in 1997 with a mission to serve waterlogged customers in Southern Florida. They specialize in water damage, mold remediation, and flood work. After working to dry out Florida residences and businesses, they soon found that their efforts alone were not enough. As a result, they developed a nationwide network of affiliates. Owner Mark Decherd's vision has become reality with more than 13,000 nationwide claims processed in the last two years. They have established working relationships with numerous insurance companies to help the processing of claims for water damage losses.

The Dryout network is state-of-the-art, featuring proprietary claims processing software which is used on numerous Dryout affiliate Web sites. No matter where in the country a customer resides, if they need water damage service, a Dryout affiliate is ready to serve. The customer simply fills out a form detailing the nature of their claim and hit the "submit" button. The Dryout software instantly processes the claim and routes it to the local Dryout affiliate who takes over from there.
In addition to strong relationships with all of the major insurance companies, Dryout is also an active government vendor. The Dryout name is familiar to purchasing agents as well as large corporations and individuals.

Mark Decherd
Phone: 239-437-7100
Fax: 239-768-3348
1415-3 Colonial Blvd.
Fort Myers, FL 33907


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