Thereâs a lot of confusion surrounding water damage and insurance, particularly questions on what types of water damage are covered, and what are not. Homeowners without a solid understanding of their coverage could be in for an unpleasant surprise if they submit a water damage claim only to learn that itâs not covered.
Sudden and accidental
The most important words to remember when understanding insurance coverage for water damage is the phrase âsudden and accidental.â This phrase is most likely in your homeowners insurance policy, and it is the standard to which your damage will be held if you file a claim.
If your pipes freeze and burst causing water damage, that would most likely qualify as sudden and accidental water damage. This assumes that there wasnât an underlying maintenance issue or decision on your part that caused the pipes to freeze.
For example, if your hot water heater has a slow leak that has dripped over time causing water damage in your basement, thatâs neither sudden nor accidental. In this situation, if you file a claim it will likely be deniedâyour insurance company will view this as a home maintenance issue that you chose to ignore until it caused a problem.
The ability to demonstrate that youâve actively maintained your home will be central to many water damage claims. Water damage is both common and costly, so insurers are likely to examine pipes, fittings, and other components for wear and tear.
Outside water coming in
Floods
Flooding is almost never covered by standard homeowners insurance policies. For that, youâll need separate flood insurance. If normally dry land is submerged under water and flows into your home, thatâs considered floodwater damage.
Changes in flood risk maps and assessment have made providing flood insurance more competitive, and some private insurance providers are now entering the market. Given the risk factors involved, homeowners should consider purchasing flood insuranceâeven if they are not in a designated flood plain. Flooding can happen anywhere water has an opportunity to rise fast. Heavy rainfall can overwhelm drainage systems, even in urban and suburban areas, leading to flood waters. You donât have to live near an existing river, stream, lake or the coast to be subjected to floods. Get a flood insurance quote today.
Storm damage
Storm damage may or may not be coveredâonce again, it depends on how the damage occurred and if neglected maintenance contributed in any way. If high winds tear off shingles, or if a tree branch crashes into your house creating a hole and water gets in, an insurance adjuster will assess the damage.
On the other hand, if the roof was showing signs of disrepair and the tree was diseased or dying, the adjuster may determine that neglected maintenance was the primary factor behind the damage and your claim could be denied.
Other forms of water damage
When people think about homeowners insurance covering the damage from a fire, itâs natural to focus on what was burned or has damage from soot. But the damage from the water used to put out the fire can be considerable. Whether itâs from an installed fire suppression system like sprinklers or water used by the fire department to put out the fire, water damage is usually a factor following most house fires.
Damage from water used in putting out a fire will most likely be covered. But, as with other issues mentioned earlier, the cause of the fire will be investigated and considered. If itâs determined that a lack of maintenance or neglect led to the fire, your claim might not be approved.
Sewer backups are not typically covered under standard insurance policies. For coverage that will help you to repair the damage caused by sewage backing into your home, youâll most likely need to purchase additional coverage, called either a drainage system endorsement or sewer backup endorsement. Your agent can help you determine if purchasing sewer backup coverage is right for you.
How can I avoid water damage?
It shouldnât be a surprise that the number one way to avoid experiencing water damage is by being extremely vigilant when it comes to home maintenance. Do not allow small problems to blossom into huge repairs, and tackle things like small leaks quickly.
- Check hoses and water lines on dishwashers, clothes washers, and refrigerators frequently for leaks and cracks.
- Replace older hoses and seals when they show signs of ageâbefore they start to fail.
- Check caulking and seals in bathrooms.
- For sinks, check underneath and inside cabinets. There should not be any moisture, if there is, check for leaks. Fix any faucets that drip.
- Routinely inspect your hot water heater and any water softening and filtration systems for leaks or drips.
- Examine your roof both inside and out for signs of wear and to see if any water is seeping into the attic area. Pay close attention to corners and areas around chimneys, as water can collect in these spots.
- Check for loose or missing shingles.
- Keep gutters clear of debris.
- If youâre in an area that experiences cold temperatures, there are additional steps you can take to insulate pipes and install preventative measures like pressure release valves, that decrease the chances of your pipes freezing and bursting.
- Outside your home, know where your water lines, septic system, and pipes are located. Do not plant trees, shrubs, and bushes in places where root systems can cause damage or blockages.
For everything noted on the list above, make repairs as quickly as possible. You are unlikely to save money by waiting to fix water issues; damage is almost always going to get worse and be more expensive to repair if you wait.
In addition to staying on top of home maintenance, you might want to consider installing smart home devices that can detect leaks and alert you to any problems. Because these devices help to identify problems early, avoiding expensive claims, some insurers offer discounts to homeowners who install them.
To learn more about ways to protect your home from expensive water damage, or to get quotes for homeowners insurance policies and specialized endorsements, contact the experts at Rate Insurance. Theyâll help you find the right policies to protect what is important to you.
Disclaimer:
*Savings, if any, vary based on the consumerâs profile and other factors. Contact your insurance agent for more information. Restrictions apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate Insurance does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate Insurance. Rate Insurance, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
