Water Damage Covered by Insurance
Water damage is caused for many different reasons and we explained the ways water damage is covered by an Insurance Provider.
Water damage insurance claims can be frustrating if you do not have experience or understand the process. If you want to read about the water damage insurance claims process… Click Here.
Learn the 3 Secrets You Should Know Before Placing an Insurance Claim Here
Categories of Water Damage Insurance Coverage
Water Damage Insurance Coverage can be broken down into these categories:
· Broken Pipe or Burst Pipe Insurance Coverage
· Broken Appliance or Appliance Failure Insurance Coverage
· Drain Backup or Sump Pump Failure Insurance Coverage
Broken Pipe or Burst Pipe Insurance Coverage
When the source of water damage is a broken or burst pipe, the insurance coverage is good and usually will not have issues with a limit.
The only thing that will not be paid by the insurance company is the cost to repair the broken pipe…
But the insurance company will pay for the emergency water mitigation services as well as the water damage repairs to the structure.
This includes:
· Water Removal
· Material Removals
· Structural Drying
· Water Damage Repairs
· Personal Contents
Broken Appliance or Appliance Failure Insurance Coverage
The insurance coverage for a broken Appliance or an Appliance failure is very similar to a broken or burst pipe…
Again, the only thing that will not be paid by the insurance company is the cost to replace and repair the Appliance that caused the water damage.
The water mitigation and repair services will be covered by the insurance company.
Drain Backup or Sump Pump Failure Insurance Coverage
Drain Backup or Sump Pump Failure insurance coverage is usually limited to $5000, $10000, or $25000.
The limits are usually written in an insurance policy as “Drain Backup” “Water Backup” or “Sump Pump Backup”….
Each insurance company will write the description differently in their policies.
Now, limits do not always mean that there will be an issue with the coverage. The only times a homeowner will have a coverage issue is if they are underinsured for their property.
This is most common with large, finished basements….
If a basement is over 1500 square feet and has a wet bar, kitchen, or bathroom, the homeowner probably needs a $25,000 limit to not be underinsured for a flooded basement.
In any scenario, when a property owner is experiencing a drain backup or flooded basement due to a sump pump backup, its best to get a professional water restoration contractor involved early to iron out all the details and to move forward with the best plan.
