WATER DAMAGE: WHAT IS AND ISN’T COVERED BY INSURANCE

Water damage is one of the leading causes of insurance claims in the United States. Damage caused by failed plumbing or storms are a threat to your home and property as well as your family’s health. It’s important to take immediate steps to remediate and clean up water damage as quickly as possible to minimize the damage to your home and property.

A standard homeowners insurance policy provides coverage to repair or replace your home and its contents in the event of damage. That usually includes damage resulting from fire, smoke, theft or vandalism, or damage caused by a weather event such as lightning, wind, or hail. 

Water damage can be tricky because not all homeowner’s policies cover all types of water damage. Water-related damage is expensive to repair, so it’s essential to understand your homeowner’s policy and exactly what it does and does not cover. Purchasing an endorsement or rider can help cover gaps in a standard insurance policy. 

What Types of Water Damage Are Usually Covered?

A standard homeowners insurance policy typically covers “sudden and accidental” water damage. For example, damage from a burst pipe or a leak from your washing machine or dishwasher may be partially covered. Your insurance company may cover the cost of repairs to your home but not replace the appliance or pipe that caused the damage. 

Water damage caused by poor maintenance or general wear and tear, such as aging pipes, might not be covered. It’s less about the type of damage but rather why the damage occurred in the first place. Homeowners are responsible for routine maintenance. Even if a pipe suddenly bursts, your insurance company can deny your claim if there are signs of deterioration, negligence, or shoddy repairs.

What Types of Water Damage Are Not Usually Covered?

Flood Water

A standard policy does not cover flooding. That’s because flooding is a common occurrence in many areas. You should purchase a separate flood insurance policy if you live in an area prone to flooding. Your mortgage lender will likely require the purchase of flood insurance if you live in a designated flood zone.

Rain

Standard policies cover water damage from rain, but not always. The line between a ‘flood’ and ‘water damage’ is often a gray area. If an old or damaged roof ends up causing rain to leak into your home, your insurance may cover interior damage but not the roof itself. If your basement gets damaged because of heavy rainfall, you may not be covered since it’s considered a flood. 

Plumbing Issues

Some plumbing problems are covered if they are “sudden and accidental.” For example, insurance will likely pay for repairs if you live in a condo and the upstairs neighbor’s bathtub overflows and damages your unit. On the other hand, you probably won’t be covered if you fail to repair damaged or leaking pipes and flooding results. 

Sewer Backups

Standard homeowners, renter, and condo policies do not cover water damage due to the backup of a sewer or drain. Most insurers offer endorsements for sewer backup. It’s essential to read these endorsements carefully as some still exclude coverage if the backup is due to flood water, while some companies offer backup coverage even if the sewer backup was caused by flooding.

How to Avoid Having Your Claim Denied

Understand your homeowner’s insurance policy. Before filing a water damage claim, review your policy and contact your insurance agent for specific directions on documenting the damage and properly filing your claim.

Stay on top of regular home maintenance. For repairs or installations, always hire qualified licensed professionals. Your insurance company may deny your claim simply because you did not hire a licensed contractor to handle repairs or other work. Keep records of all home maintenance and repair work. 

Purchase the correct type of insurance for your needs. There are insurance policies for condo owners, single-family homes, mobile homes, older homes, and renters. A comprehensive policy usually covers water damage from plumbing or water heater malfunctions. However, the exact coverage depends on the individual insurance company. It’s best to speak with an experienced insurance agent to find the best policy for water damage restoration.

What To Do If Your Claim is Denied

Having an insurance claim denied is upsetting. If this happens, ask for clarification. You always have the right to know why your claim was denied. If, after receiving an explanation, you still believe your property damage should be covered, discuss your concerns with your insurance company’s claims adjuster and your agent. You have the right to file a formal appeal which will trigger a review of your denied claim. If you decide to file an appeal, it’s important to present as much evidence and documentation as possible to support your position. The more organized you are, the better your chances of getting a thorough review of your claim will be.

Trust Your Local Cleaning and Restoration Professionals 

When you need professional cleaning or restoration services, call St. Louis Cleaning and Restoration at (314) 328-7793 or contact us online to discuss your needs. In business since 1991, our technicians are trained professionals who can restore any disaster in your home. As a leading water damage restoration company, you can count on us to come to the rescue and save your property.

We proudly serve the greater St. Louis metropolitan area, and our emergency response teams are available 24/7 when time is of the essence. Contact us today for a free consultation and estimate.