Flood versus water damage insurance: what does it cover?

 

For most people they learn the most about their insurance policy after they already need to invoke it. This is not the best time for a crash course in insurance coverage as you might be shocked by what you find out. For example most water damage insurance does not cover flooding and in America flooding is the most common form of natural disaster. Between the year 2008 and 2012 the average insurance claim for flood damage was $42,000 or more.

You may be asking yourself, what’s the difference between them? Water damage covers any water that does damage to your home before reaching the ground outside of your home. Damage from a leaky roof or a broken pipe is covered but if water seeps into your home from outside that is not covered. It is also important to note that the damage to your home is what’s insured not the item that created the damage. That means if it was a broken pipe that failed and your carpet was destroyed the carpet will be replaced the pipe will not.

Here are a few things that flood insurance generally covers:

  • Building an foundation
  • Electrical and plumbing
  • Firmly installed carpet and paneling
  • Removal of debris
  • Built-in appliances

In California it has been known for homeowners to have their application for renewal of their insurance denied after they make a claim will stop the insurance companies justify this by saying that the administrative costs of dealing with water damage a high and that they don’t want to deal with residual mold problems.

The more you understand your policy the more well prepared you will be for any eventuality. The last thing you want is to have a disaster happened to you and to know that only part of your claim will be accepted.

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