Homeowners insurance can be a lifesaver when it comes to protecting your property from various risks, including water damage. We all know water damage can be a real pain in the pipes. But first things first, remember that a standard policy doesn’t cover flood damage.
What’s Covered: Water Damage Originating Inside Your House
If your homeowners insurance is written as an HO3 policy, you generally have coverage for two types of water damage:
- Water damage originating within your home: Sudden bursts or leaks from pipes and appliances are common culprits behind this type of damage. The havoc they can wreak on a property can be extensive, resulting in costly replacements and a dent in your wallet.
- Water damage resulting from covered property damage: HO3 policies typically cover damage by “fallen objects”. For instance, if a tree branch collapses on your roof during a rainstorm, the ensuing water damage may be covered since it was caused by the covered event of the fallen branch.
It’s essential to note that the coverage described above applies to HO3 policies. If your coverage falls under form HO1 or HO2 (also known as “named perils” policies), you may not have the same protections. To determine your policy type, review your insurance policy or consider reaching out to your Agent to discuss your coverage options.
Coverages That Apply
Assuming your homeowners policy protects against external water damage, you likely have two main coverage parts that come into play:
- Coverage A (Dwelling Coverage): This coverage helps pay for repairs to the structure of your home when it sustains damage from a covered peril. For instance, if water damage to your floor is caused by a burst pipe, your dwelling coverage may come into effect.
- Coverage C (Personal Property Insurance): Also known as personal property insurance, Coverage C safeguards your belongings. So, if the same pipe burst damages your computer, Coverage C typically covers the loss.
Additional coverage parts may be applicable based on your specific circumstances.
What’s Not Covered: Water Damage Originating Outside
Unfortunately, standard homeowners insurance policies almost universally exclude coverage for floods, which are considered water damage originating from outside your home. Surprisingly, a study revealed that 56 percent of homeowners mistakenly believe their homeowners policy provides flood protection.
To clarify what constitutes a “flood” in insurance terms, it includes any of the following:
- Rising waters from unusual rainfall or backed up storm drains in your area.
- Rising mud from similar causes.
- Water flowing into your home due to a malfunctioning municipal sewage system.
Flood coverage isn’t limited to homeowners residing in designated floodplains; over 20 percent of National Flood Insurance Program (NFIP) claims come from homeowners outside these areas. Factors such as inaccurate floodplain maps and climate change-induced severe storms contribute to this trend.
Other Types of Water Damage Not Covered
In addition to floods, standard home insurance typically excludes coverage for other types of water damage caused by:
- Poor maintenance and neglect.
- A damaged water main.
- Earthquake.
- Outside sewer or drain issues (although you may be able to get an endorsement for water backup and sump pump overflow).
Furthermore, while home insurance may cover repairs caused by leaky windows, it often won’t cover the replacement of the windows themselves unless they were damaged during a covered event.
The Bottom Line
If you have a standard homeowners insurance policy, it’s essential to understand that flood damage is typically not covered. If you desire flood insurance, a Swyfft representative can guide you through the process of securing appropriate coverage tailored to your needs. Remember to review your policy and understand what’s covered. Ask questions to ensure you have the right protection in place for your property.