Don't Let Water Damage Sink You: Insurance Tips Every Homeowner Should Know

Water damage is the 3rd most common home insurance claim, behind wind/hail and fire/lightning claims (ref:  Insurance Information Institute).

Of all water damage claims, the root cause is damaged pipes.  So, while indoor plumbing has been one of the greatest conveniences of homeownership, it has been one of the greatest sources of losses of home insurers.

Do you know which water damage is covered vs. not covered by homeowners insurance?
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Here are 5 major considerations to help you identify which side of the fence water damage may fall on regarding homeowners insurance coverage:

Cause of Damage:

• Sudden and Accidental: Most homeowners policies cover water damage that is sudden and accidental, such as a burst pipe or an overflow from a washing machine.
• Gradual Damage: Damage due to lack of maintenance, wear and tear, or gradual leaks is usually not covered.

Source of Water:

• Internal Sources: Damage from internal sources like plumbing, HVAC systems, or appliances is typically covered.
• External Sources: Flooding from external sources like heavy rain, storm surges, or rising water levels is generally not covered under standard policies. Separate flood insurance is required for this.

Policy Endorsements and Riders:

• Sewer Backup Coverage: Standard policies often exclude sewer or drain backups, but this can be added through an endorsement.
• Water Backup and Sump Overflow: Similar to sewer backup, coverage for sump pump failures or overflow can be added.

Exclusions and Limitations:

• Negligence: Damage resulting from homeowner negligence, such as not repairing a known issue, is typically excluded.
• Maintenance Issues: Long-term issues like mold, mildew, or rot from ongoing leaks are not covered.

Documentation and Proof:

• Immediate Reporting: Promptly report water damage to your insurance company.
• Detailed Records: Keep detailed records of the damage, including photos, receipts for repairs, and any professional assessments.

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Most important, consulting with an experienced independent insurance agent helps homeowners better navigate policy coverage options and ensures they are adequately protected against water damage. 

Feel free to contact me if you have additional water damage questions (or other home/auto insurance questions):  706-589-0192.

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Does Homeowners Insurance Cover Hurricane Damage?
Are You Aware Of These Three Common Homeowners Insurance Endorsements?