After a City of Minneapolis water main break caused significant damage to many businesses and homes around the 50th Street and Penn Avenue intersection on Feb. 13, the Hersey family’s insurance was quick to deny their claims for damage to both the Paperback Exchange Bookstore and their nearby home.

Given that City infrastructure failed and caused significant damage to private property, it’s fair to think that the City would cover the costs. It’s not that simple.

Property owners need to submit a claim to the City of Minneapolis. Claims are reviewed monthly.

In most cases, the City has immunity unless they are actively working in the area. For example, if a street reconstruction project produces flooding to a business, the property owner would have a strong case because the City made a mistake.

During the water main break, water poured out of the building’s basement for many hours, which may help the claimants’ cases. There were ten valves that needed to be turned off on 50th Street, and one of them was paved over.

“The City of Minneapolis has a water main failure rate well below the average for a water system of our size and actively invests in water system improvements,” a statement from the City of Minneapolis reads. The City utilizes federal asset management principles to safely maintain its water and wastewater utilities.

The City will not be determining a cause for the water main break.

Claimants can appeal if the City denies their claim and a denial from the City may help with insurance claims.

The City’s Small Business Team is available to help businesses impacted by the water main break at SmallBusiness@minneapolismn.gov or 612-673-2499.

Business owners that are struggling with insurance claims can also reach out to the Minneapolis Department of Commerce at consumer.protection@state.mn.us or 651-539-1600.

This is a developing story. More voices and information will be shared in the upcoming weeks.