The Insurance Information Institute reports that water damage is the second leading cause of homeowners’ insurance claims. And according to Consumer Shield, insurance payouts for water damage average between $7,000 and $12,514. Without insurance, you’d have to shoulder that expense alone. However, all water damage is not treated equally by insurance companies.
Let’s look at what you need to know about insurance and water damage.
Flood and Non-Flood
In the eyes of most homeowners’ insurance companies, water damage that results from flooding is different from other kinds of water damage. A typical homeowner’s insurance policy covers sudden, accidental water issues that occur inside your home. For instance, if a burst pipe turns your kitchen floor into a pool, you can expect your insurance policy to help you pay for the damage. However, there are other instances of water damage that your homeowner’s insurance company will likely deny.
Imagine that a heavy thunderstorm caused a flood in your neighborhood. The flood sent water flowing into your renovated basement. Your beautiful wooden floor is now swollen and warped. The first thing you do is contact your insurance company to file a water damage claim. You discover that your insurance company will not help this time around.
A typical homeowner’s policy doesn’t cover damage caused by rising water outside your home. That means you’re on your own after that flood. You’ll need to already have flood insurance to get help in this scenario. Many homeowners are clueless about this exception. It results in a bad surprise when trying to file a claim. Adjusters International states that policy exclusions are a top reason for claim denials.
What Does a Typical Homeowners Policy Cover?
Your homeowners’ policy comes in handy for certain types of water damage. Water damage caused by a leaky or burst pipe in your home is usually covered. Other covered water events include things like a broken water heater or overflowing toilet. If rain floods your home because a tree crashes into your roof, you’ll get help. But there are exceptions.
The insurance company will determine if a lack of maintenance caused the problem. For example, the insurer might determine that your pipes were old and in terrible condition. There are signs that the pipes were bad because of years of corrosion. Your insurer might deny your claim due to long-term wear and tear.
Should You Get Flood Insurance?
Living in an area that floods often is a surefire sign that you need flood insurance. In fact, if you purchased a home that’s in the flood plain, your mortgage lender may require you to have flood insurance. Your insurer can help you buy a flood policy through the National Flood Insurance Program (NFIP). The NFIP is a Federal Emergency Management Agency (FEMA) program managed by the government.
An NFIP policy usually has a 30-day waiting period. If a flood occurs during the waiting period, then you can’t file a claim. Private flood insurance is an alternative to a FEMA policy. Private policies are from companies unaffiliated with FEMA or any government agency.
Septic Tank and Sump Pump Concerns
A typical homeowner’s policy excludes water damage caused by a sump pump or septic tank. Your insurer might offer an add-on to your policy. The add-on will cover septic tank or sump pump backups. This is when sewage or water from a sump pump backs up into your home.
Mold and Mildew
Mold and mildew often come along with water damage. Both can pose a health risk, so you’ll want to address the issue. Your insurer will help cover removal and repairs under certain circumstances. The insurer must determine that the growth is a direct result of a covered event. If a burst pipe caused the problem, then that’s a covered event. What if the mold grew because of a leak you ignored for months? The insurer will probably deny your claim.
What to Do When the Water Clears
It’s wise to file your claim as soon as possible. Here are a few steps to take before filing your claim.
1. Get Evidence
Take photos and/or video of the damage. If possible, make sure all the files show a time and date. Make a list of personal belongings that have suffered damage.
2. Prevent Further Damage
Remove wet rugs and items that can damage your floors. Open windows or use fans to help the drying process. Your insurer needs to know you’ve made an effort to stop further damage. Otherwise, your insurer might deny your claim.
Dealing with the Adjuster
You’ll usually receive a visit from an insurance adjuster after filing your claim. If you have a smartphone, your insurer might ask you to submit photos of the damage. In most cases, an adjuster will come to inspect your property.
They might take photos and measure the damaged area. You’ll then talk more in detail about when and why the problem started. After a review of your information, your insurer will either approve or deny your claim.
What if the Insurer Denies the Claim?
Your insurer will explain the reason for the denial. The most common is that your policy doesn’t cover the event. For example, damage from a gradual leak doesn’t count as sudden and unexpected damage.
Poor maintenance and wear and tear can also result in a denial. Remember that you often need policy add-ons for certain types of damage. This includes damage from floods, groundwater, or sewer backups. If you disagree with the insurer, then you can file an appeal.
Reduce the Risk of Water Damage
Regular maintenance is a good defense against water damage. Check around your home for areas that are prone to water damage. Inspect your roof for shingles that are missing or damaged. Keep gutters clean so water flows away from your home. There are also steps to take inside your home.
Look under sinks for signs of a pipe leak. Check around your washing machine and water heater for leaks, too. Ceiling stains, damp smells, or soft spots on walls are also things to watch out for.
Become familiar with your main water shut-off valve. Know where it is and how to turn it off. If a pipe bursts, shutting off the water can limit the damage. During cold weather, keep pipes warm to reduce the risk of freezing. Foam or rubber pipe sleeves are an option. If your home is warm, you can open cabinets under sinks. This will allow heat to circulate through the pipes.
Reliable Water Damage Repair
iMold is a trusted company when it comes to mold removal and water damage repairs. We have more than 28 years of experience serving Fort Myers, FL and Southwest Florida. We specialize in helping our customers recover after water damage. Call us when you need water leak detection and structural drying. We’re also pros with sewage cleanup and flood damage cleanup.
Contact iMold today to learn more about our services.
