Which Water Losses Are Covered by Homeowners' Insurance?

3/10/2021 (Permalink)

A water loss is not always covered by insurance.

Restoring your basement after a water damage can be expensive. Insurance can help you pay for the cost of water cleanup services in Delray Beach, FL. However, depending on the nature of the loss, your insurance coverage may not apply. A basement flood, for instance, is not usually covered by homeowners' insurance.

Coverage Exclusions

In fact, any type of flood damage is excluded from homeowners' policies. Floods have many causes, including:

• Over-saturated grounds
• Storms
• Surging ponds, oceans, lakes and rivers
  

Luckily, the National Flood Insurance Program offers separate flood insurance for homeowners. While you may be wary of adding another insurance premium to your monthly bills, the cost will be worth it in the long run if you ever suffer a flooded basement.
Other water losses are also not covered by homeowners' insurance. The insurer will deny coverage if the damage resulted from a maintenance problem that you failed to address, such as a leaking pipe. In addition, insurance money does not pay for the cost of repairing the pipe or appliance that caused the damage.

Coverage Inclusions
While a homeowners' policy does not pay for repairs following a basement flood, insurance does apply whenever there is an accidental and sudden discharge of water. This could result from a pipe burst or a malfunctioning heater.
Most policies include both personal property and dwelling coverage. Personal property coverage pays for any of your belongings that were damaged by the water. Dwelling coverage, meanwhile, can be used for repairs to the structure of your home, such as the walls and roof. Do not forget that you will have to pay a deductible before your insurance applies.
A water loss is not always covered by insurance. Damage that results from a longstanding condition is typically not included in a homeowners' policy. You should thus perform proper maintenance of your plumbing system. You should also purchase separate insurance that will help pay for repairs following a basement flood.