Category 3 water loss involves water that is grossly contaminated and can contain pathogenic, toxigenic, or other harmful agents. Such water may carry silt, organic matter, heavy metals, regulated materials, or toxic organic substances.

A Category 2 water loss refers to a source of water that contains a significant degree of chemical, biological, or physical contaminants and causes discomfort or sickness when exposed or consumed. Known as Gray Water,this type of water damage carries microorganisms and nutrients of microorganisms.

Recycled grey water can be used for irrigation and in constructed wetlands. Black water is waste water from toilets, while greywater is waste water from sinks, dishwashers, bathtubs, and washing machines. Black water is contaminated with disease carrying bacteria, while grey water has lesser contaminants.

However fast it occurs, water damage is a major contributor to loss of property. An insurance policy may or may not cover the costs associated with water damage and the process of water damage restoration.