A homeowner called his insurance company because of an issue with the drain underneath the kitchen sink. Water from the drain ruined several cabinets and a laminate floor. The adjuster at first said that because the loss involved a drain, the homeowner's coverage would be limited to the amount stated in the policy rider for backup of sewer and drain. This would have limited the homeowner's amount of coverage to $5000. That amount would not have been enough to replace his entire kitchen and laminate floor... by a long shot.
When confronted with this information by the homeowner, the adjuster changed his tune and agreed that the homeowner was in deed fully covered and the insurance company would pay for the cost of totally replacing the kitchen cabinets, upper and lower, as well as the laminate floor. The insurance companies know that if they tell 100 people no, at best 10 will complain and fight the decision. These 10 will be fully compensated for their loss.