Are You Covered? Understanding your Homeowners Policy when it comes to Water Damage

7/29/2020 (Permalink)

Do You know your insurance policy when it comes to water damage?

Homeowners Insurance 

A traditional homeowner's policy specifically excludes water damage, however, there are instances in which water damage may be covered with added endorsements.

Example 1: Damage caused by water or sewage that backs up through sewers or drains. With a specific endorsement, coverage can be applied, though it is limited.

Example 2: Damage caused by water that overflows from a sump pump system. If you have a sump pump and drain tile around the foundation of your home, you may have coverage if you have this added endorsement.

Example 3: Damage caused by water seeping through my foundation, windows, walls, etc. There is no available coverage for water seepage from outside surface water caused by rain, snowmelt, flood, etc.

In most cases, you will find that water damage is only covered if the damage is sudden and accidental. For Instance: If a water pipe breaks in your home, there may be coverage from the resulting damage caused by water because it is a sudden & accidental loss. However, gradual damage is usually not covered.

Gradual damage water damage is not usually covered, so although your policy might have water damage coverages, if the reason for the damage is not sudden and accidental, then you may be denied in a claim.

In addition, you need to consult your policy deductible. Most water damage claims are small dollar amount claims, that may not be covered anyway. For instance, your deductible maybe $1,500, but even if you hire a water damage restoration company, such as SERVPRO of Kendall County you may only have $1,100 in damage.