Dealing with water damage is like discovering a disaster in your home. Whether it's due to burst pipes or overflowing toilets, the risk of devastation is significant, and repair expenses can be overwhelming. But hey, at least you can count on your insurance to cover the costs... or can you? Not knowing what your insurance policy includes may get you into unwanted future surprises.
With more than ten years of experience collaborating with insurance firms and homeowners, we understand the destruction caused by water damage. Although we have numerous success stories, there have been instances where homeowners encountered issues with their insurance providers. To avoid these situations, we will educate you on insurance policy coverage related to water damage.
Let's explore the typical situations that could void your water damage insurance claim, what is or isn't covered in your policy, and some recommendations to consider. Staying informed will enable you to take preventive actions and ensure the necessary protection. So, let's get started and learn more about your insurance policy.
1. Gradual Deterioration and Lack of Maintenance
Insurance policies are designed to cover sudden and accidental events, not gradual deterioration. Your claim will likely be denied if the water damage results from long-term wear and tear, neglect, or lack of proper maintenance. This is precisely why immediate action is highly recommended when facing water damage. Some examples of the exclusions include:
- Leaky Pipes: A slow, persistent leak that eventually causes significant damage is often considered a maintenance issue, not a covered peril. Insurance companies expect homeowners to maintain their plumbing systems proactively.
- Roof Leaks: A roof past its lifespan, allowing water to seep in during heavy rain, is another example of gradual deterioration. Regular roof inspections and timely repairs are crucial to avoid claim denials.
- Cracked Foundations: While some policies might cover foundation damage caused by specific events like earthquakes, general cracking due to settling or poor construction is usually excluded. Water damage resulting from these cracks is therefore not covered.
- Mold: Long-term moisture in a space often leads to mold growth. While some policies may offer limited coverage for mold remediation if it's directly related to a covered peril, it's generally excluded if it stems from ongoing leaks or lack of ventilation.
The bottom line is that you should not have problems with your insurance company if you take preventive measures to protect your home, such as regular maintenance. You should also address minor issues promptly and avoid ignoring signs of leaks or water intrusion. Documenting the damage will also help you in the event of a claim.
2. Flood Damage
Standard homeowners insurance policies do not cover flood damage. This is a significant exclusion, as floods are a common and devastating cause of water damage. A flood is typically defined as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land or two or more properties (at least one of which is your property) from:
- Overflow of inland or tidal waters.
- Unusual and rapid accumulation or runoff of surface waters from any source.
- Mudflow (mudslide) which is caused by an accumulation of water on or under the ground.
- Collapse of land along the shore of a lake or other body of water.
If you live in a flood-prone area, purchasing a separate flood insurance policy through FEMA's National Flood Insurance Program (NFIP) or a private insurer is essential. You should also consult your insurance agent about options (add-ons) for flood coverage.
3. Earth Movement
Damage resulting from earth movement, including earthquakes, landslides, or mudslides, is usually not covered by standard homeowners insurance policies. If water damage occurs as a direct consequence of these excluded incidents, your claim will be denied.
Mudflows or mudslides are covered by flood insurance, so you should consider buying coverage through the National Flood Insurance Program (NFIP) page or private insurers.
4. Sewer Backup
While some homeowners insurance policies offer limited coverage for sewer backup, it's often an optional add-on or requires a specific endorsement. If you don't have this coverage, your claim will be denied. Sewer backups can be caused by various factors, including:
- Blockages in the sewer line.
- Tree roots infiltrating pipes.
- Heavy rainfall overwhelming the system.
Make sure to check your policy for sewer backup coverage. If you don't have it, consider adding it, especially if you live in an older home or an area with aging infrastructure.
5. Intentional Damage
Any water damage intentionally caused by you or someone residing in your home will not be covered. This includes situations like:
- Deliberately overflowing a bathtub or sink.
- Intentionally damaging plumbing fixtures.
As insurance is designed to protect homeowners against unforeseen events, intentional acts will not be covered. Also, fraudulent claims will not only be denied but could also have legal consequences.
6. Water Damage from External Sources (Sometimes)
While your homeowner's insurance generally covers water damage originating within your home, there can be exceptions for water damage coming from outside sources. For example:
- Water Backing Up From a Neighboring Property: If your neighbor's faulty drainage system causes water to flood your basement, your insurance might not cover the damage. You might have to pursue a claim against your neighbor.
- Damage From a Public Water Main Break: While some policies might offer limited coverage, it's often the municipality's responsibility to address damage caused by public infrastructure failures.
7. Neglect After a Covered Loss
Even if your insurance covers the initial water damage, you are responsible for mitigating further damage. If you fail to take reasonable steps to prevent the situation from worsening, your claim could be partially or fully denied. This includes:
- Not promptly repairing a leak after it's discovered.
- Not taking steps to dry out affected areas.
When you find a water-related incident, contact a professional water damage restoration company and your insurance company to file a claim. The restoration company can take active steps to stop the damage on its track while your insurance adjuster arrives.
8. Inadequate Coverage
Even if your claim is approved, it might be for less than the actual cost of repairs if you have inadequate coverage limits. This can leave you paying out of pocket for a significant portion of the restoration work.
Make sure to review your homeowner's insurance policy regularly and ensure that your coverage limits are sufficient to rebuild your home and replace your belongings in the event of a significant loss.
9. Policy Exclusions and Limitations
Every insurance policy has specific exclusions and limitations. You should thoroughly read your policy document to understand what is and isn't covered. Make a list of questions, and don't hesitate to ask your insurance agent to explain any confusing language.
Water Damage? Call Restore-It!
Water damage can be a devastating experience, but understanding the intricacies of your homeowner's insurance policy can help you navigate the claims process and ensure you receive some needed financial compensation. Having learned what your typical insurance will NOT cover, you are now prepared to take proactive steps to maintain your property, secure appropriate coverage, and protect your investment. If you ever encounter water damage in your home, call Restore-It immediately and start your path toward mitigation and restoration. Your home (and your wallet) will thank you.
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