Here’s Why You Should Look Up Your Water Damage Coverage And Limits Before Renewing Your Home Insurance
By: 911 Water Damage Experts
According to Insurance Canada, the new regular fee for annual weather damage to homes is $2 billion.
When it comes to getting home insurance, most homeowners get standard home insurance, but it doesn’t always cover everything they think it covers.
Flood damage is a common insurance claim, but it may not be covered depending on the cause and severity.
Here are the top five reasons why you should check what water damage is covered and where you need additional coverage before renewing your home insurance.
Let’s get right into it.
1. I don’t know what kind of insurance you have
Most insurance companies classify home water damage coverage into three categories:
- Basic cover: Protects against damage caused by unexpected events inside the home. These include burst water pipes, flooded bathtubs, broken/leaking aquariums, etc.
- Sewer backup and sump pump coverage: Protects against backflow and loss due to runoff from drains leading to sewers.
- Terrestrial water range: Offers protection for loss or damage related to water invasion into your property. This is typically from heavy rainfall, spring run-off or overflow from lakes or rivers.
There is a lot of information to process and navigating through all the options can be confusing.
An insurance broker can help you understand your insurance options and find the best solution for your situation, including explaining how water damage may or may not be covered.
2. I want to know what is not covered by insurance
While there is some overlap in the coverage of insurers’ insurance benefits, there are also common scenarios that are not covered by insurance. Regardless of which company you partner with when it comes to water damage, there are certain losses that are not covered by insurance. Such types of losses include:
- Prolonged seepage or leakage
- Rain or snow entering a house through an open window
- The roof is leaking due to wear and tear
Such incidents are easily preventable and are considered the fault of the homeowner not preventing or stopping it.
3. I want to know what is covered by insurance.
Before purchasing additional coverage, you may be interested in knowing what your policy covers.
When water damage is caused by an insured accident, the following categories are usually included in your insurance or water damage supplement insurance:
- Insurance coverage for personal belongings: Personal items such as furniture, televisions, computers, clothing, sports equipment, and other personal items are always standard insurance limits items such as jewelry and collectibles, but you can assess their value and purchase additional insurance.
- Liability protection: Suppose a third party is injured on your premises, or you cause injury or damage to another person or in this case, a lawsuit may be filed. If water damage or severe storms are the cause of these injuries, liability insurance can help pay legal costs and judgments. However, there are limits to liability insurance. So if you own a swimming pool, have domestic workers, or party frequently (all of which are possible causes of water damage), you are at higher risk. In this case, you should consider an umbrella cover for more protection.
4. You want to know if overland water coverage is part of your policy
Overland water coverage gives you the reassurance that your home will be covered during the following events:
- Rain accumulation on the surface that enters through your basement windows or a crack in an above-grade basement wall
- Rain accumulation on the surface that enters through your garage door
- Sewer backup due to heavy rain and surface water also entering the home
- Sewer backup due to the over flow of a body of fresh water or lake (oceans are not covered!)
5. You Want to Know if Utility Line Damage Is Covered
Sewer backup may be covered if you have overland water coverage in your home insurance policy. However, if you don’t, you may be surprised to learn that your insurance does not cover the cost of flooding inside your home due to a burst utility line or sewer line.
Pipes, sewer lines, electrical lines, or telecommunications lines that all sit within a homeowner’s property line are the direct responsibility of the homeowner. Unfortunately, if something goes wrong, you must pay to repair or replace broken pipes and cables.
Structure And Fear
Water damage to a house can wreak havoc on its structural integrity, leading to weakened foundations, rotting wood, and compromised walls. It can also promote the growth of mold and mildew, which poses health risks to the occupants.
Become A Nightmare
Water damage can transform a house into an unexpected art piece, creating mesmerizing patterns on walls and ceilings. While it might seem intriguing initially, the beauty fades as it gradually erodes the building’s structure and turns into a costly nightmare.
Water damage to a house can unleash a hidden aquatic world within, turning your living space into a whimsical underwater wonderland. As fascinating as it may seem, living in an aquatic environment is not sustainable for a house designed for terrestrial life.
Water damage has a magical power to evoke the house’s memories, as every water stain and soaked area holds stories of past events and experiences. However, as time passes, these cherished memories will be lost forever if the damage remains unaddressed.
Architectural Point
Water damage can lead to a surprisingly inventive architectural experiment. Walls may change shape and mold into abstract art pieces, and rooms can become peculiar labyrinths with hidden paths. However, this avant-garde design comes at the cost of a safe and functional living space.
Regarding Permanence
Water damage can be permanent if left untreated. It can progressively deteriorate the house’s structure, causing irreversible harm that might eventually render the property uninhabitable or extremely costly to repair. Therefore, prompt action is crucial to mitigate the long-term effects of water damage.
Repairing And Replacing Utility Lines Is Expensive
You will want to check on your coverage for flooding due to broken pipes because the financial cost can be huge if you don’t have good coverage. Taking out insurance or adding utility line coverage can help you save money. Take a look into this option and save yourself from a future headache!
Excavation Costs Must Be Included
Pipes are usually buried deep underground. Certain areas of the site must be excavated for repair or replacement. This may involve exposing the landscape, or worse, using a jackhammer to drill holes in the house’s concrete or foundation.
Landscaping Costs To Repair The Garden
Once repairs are complete, the landscape should be restored. Remediation may include resurfacing the area or planting new trees or shrubs. Imagine having all of that to take care of on top of the costs and the struggle you have been going through while repairing another part of the home already.
May Have To Leave
In extreme cases, flooding can be so severe that you have to leave your home. This can result in hotel bills and additional living expenses. And let’s be honest, do you really want to get to a situation where you need to leave your home so it can be repaired?
Utility insurance is the perfect solution for homeowners who want to protect their property from damage caused by utility line breaks.
Talk to your insurance broker or insurance company about home insurance coverage.
Even with protection against water damage, there are times when additional protection is required. Floods can cause tens of thousands of dollars in damage to your property. If you don’t have the right insurance, you will pay a high premium.
If you have any questions about our article, “Here’s Why You Should Look Up Your Water Damage Coverage And Limits Before Renewing Your Home Insurance” or need storm restoration services feel free to call us at 1-833-WE-DRY-IT any time 24/7/365 or chat with us on LiveChat or social media.
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