Water damage can happen in homes, and especially basements, for a multitude of reasons. Because there are so many possible scenarios, it can be confusing to figure out which ones homeowners insurance will cover. Be sure to know what your current homeowners policy covers and if there are any precautions or policy add-ons that you should be taking to further protect you and your home. Below are some potential reasons a basement might flood and common insurance company responses.
First, there are two coverage options in the standard homeowners policy that will apply to water damage in the basement: dwelling coverage and personal property coverage. Dwelling coverage will help to cover the cost of damage done to the structure of your house, and personal property coverage will help pay for damage to your belongings. When dealing with insurance, it is important to remember the deductible and that there will likely be an out of pocket cost to you before your coverage begins.
An Appliance Breaks
When water damage occurs due to a broken or faulty appliance you will likely be covered by standard insurance. For example, say your washing machine malfunctioned and now your basement is flooded. Your insurance company will likely help you in this situation, but there are a couple of things they will look for before covering you. They will want to be sure that the flooding happened because the machine is faulty, not because it has not been maintained. If they find that it broke due to a lack of proper maintenance, then your claim may be denied. It is also important to note that if you are covered, you will be compensated for the damages to your dwelling or property but not for the machine itself, so buying a new appliance will be an out of pocket cost.
A Pipe Bursts
Pipes will burst when the temperature drops and pressure builds up due to freezing water. This scenario is similar to the washing machine example because it is accidental. If this happens, you will likely be covered for damages, unless the house was left unoccupied and with no heat. If that is the case, the insurance company may deny your claim because precautions were not taken to prevent the event.
A Sewer Backs Up
If a sewer backs up and floods your basement you will not be covered by your standard insurance policy. There are separate additions to your policy that you can purchase if this is something that you want to be insured for. If this is something that you are worried about then look into additional coverage, because sewage backups can be very costly.
Flooding
It is very important to know that flood damage will not be covered by your homeowners policy and flood insurance should be purchased through a separate entity. Flooding can come from hurricanes, snowmelt, overflowing bodies of water, among other sources, and can be very damaging to a home. When you buy your home, make sure you are aware of any flooding risks and look into flood insurance available in your area. You may be able to buy a flood insurance policy through the National Flood Insurance Program.
Water Seeps in From the Ground
This can be a common occurrence during wet months when the ground becomes saturated or snow starts melting and is especially a risk in older houses. This is a difficult scenario because it will likely not be covered by your homeowners insurance. It also will not be covered by flood insurance unless there is an actual flood in your area. In the short-term, know what area of your basement are affected by the flooding and do not leave anything of value in these zones. Your long-term plan of action should have someone inspect, repair and update your foundation.
Overflow
In the case of an overflowing bathtub, sink, toilet, or anything else of the sort, you would be covered under your homeowners policy. These scenarios are considered accidental, so you would be compensated for the damages.
It is important to consider all of the scenarios that may result in damage to your house and who will pick up the bill. It is always a good idea to stay on top of the maintenance of your house, yard, and appliances to prevent these issues from happening. A good line of defense would be to have a sump pump ready and working in the event that your basement does flood and to know where shut-off valves are located in your house. Understanding the risks to your home and how your homeowners insurance policy can help you is key when faced with these kinds of problems so that you are able to get your life back to normal as soon as possible.
