Burst pipes, mid-cycle washing machine breakdowns, sudden leaks behind walls — whatever the source of your water damage is, it’s going to be expensive to fix. Rotting wood and mold caused by water damage can destroy a property within weeks, which means as soon as you find the damage, you need to act fast. Many homeowners and business owners start by submitting a claim to their insurance carrier so they can get the money needed to start repairs.
Unfortunately, due to strict criteria for coverage, some never get remediation. Instead, they’re left stuck with handling the bill and cleanup themselves. Before you claim water damage on insurance, here’s your simple guide to the basics of water damage insurance coverage.
Key Takeaways
- Water damage is typically only covered by homeowners insurance if it’s sudden and unexpected, such as a burst hose.
- Damage caused over time and severe water damage from disasters also isn’t covered.
- Only water damage is covered by water damage insurance, not the source of the damage.
- In certain cases, you can work with a public adjuster to increase your payout.
What Water Damage Does Homeowner’s Insurance Cover?
Homeowners and commercial insurance carriers do provide water damage coverage, but it’s limited.
When it is covered:
Water damage caused by sudden, unexpected, or accidental events is almost always covered. Examples include a burst pipe in the basement or brand-new leaks from pipes behind the walls. Just know that you may be expected to pay a deductible before receiving any coverage.
When it isn’t covered:
Unfortunately, there are a lot more cases where you can’t submit a water damage insurance claim versus when you can.
A common question that property owners have is whether their policy will cover leaks that are caused by a lack of regular maintenance. For example, if your toilet had a continuous leak for months, your claim would be rejected.
The same goes for flooding. Most insurance carriers don’t discriminate between the source of the flood. Whether it was a flash flood from upriver or oversaturated ground keeping your property submerged, your insurance won’t cover it. You would need to buy separate coverage specifically for floods.
You would also need to get separate coverage for damage caused by outside drainage or sewer systems. In the event of a sump pump failure or a sewage backup, your standard water damage insurance policy wouldn’t cover anything. You have to buy coverage for both to ensure you’re covered.
Is Mold Considered Water Damage?
Mold is considered a byproduct of water damage. If it’s the result of a “covered peril,” then yes, mold will be covered. That includes mold that arises from damage caused by something like a burst washing machine hose. However, if the damage was from flooding, long-term leaks, municipal pipe backups, or anything else insurance carriers don’t cover, you also won’t be covered for mold damage.
Should I Submit a Water Damage Insurance Claim?
If your damage was definitely caused by a covered peril, most property owners’ first instinct is to file a claim. But that doesn’t mean you should.
Before claiming water damage on insurance, see whether the repair costs are greater than both your deductible and the higher premiums you’ll have to pay. If not, it probably isn’t worth it.
If it is, here are some tips to get the highest payout possible from your water damage insurance provider:
- File your claim ASAP: Water damage gets worse over time, leading to rotting, mold, and more. Waiting may also let your insurance carrier claim it was a long-term issue not caused by a covered event.
- Make temporary repairs: Remove as much water as possible from where water damage was done. For continuous leaks you can’t stop yourself, do what you can to prevent water from spreading.
- Document everything: Having pictures, videos, lists of assets damaged, and more help give your insurance carrier an honest and accurate remediation estimate.
If you follow these tips and your legitimate claim is still denied (or the offer is too low), it’s time to reach out to a public adjusting firm.
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