Water damage is one of the most common causes of home insurance claims. According to the Insurance Services Office (ISO), water damage claims rank as the second most frequent type of insurance claim, following damages caused by wind and hail. Water damage claims affect one in every 50 homeowners each year. It’s not surprising that people have many questions about this. For example, what is covered by your home insurance, and why do things like “gradual damage” go uncovered?
Frequently Asked Questions About Water Damage
There are some common questions people ask about what is covered by your homeowners, condo, or renters insurance. For example:
- Is water leakage covered?
- Is toilet leakage covered?
- Is water damage caused by roof leakage covered?
The answer to whether these issues are covered or not depends on the source of the damage, the type of policy you have, and whether the water damage is accidental and sudden or gradual.
What is Gradual Water Damage?
Gradual damage occurs when something slowly damages your home over time. For example, let’s say that the faucet handles are leaking and you ignore the repairs. This leak may cause damage to your home at some point. If you try to file an insurance claim when that happens, it may be denied. The insurance company will see that the problem has persisted for a long time and that you did not complete the necessary repairs.
Examples of Gradual Damage
Common causes of gradual damage that may lead to claim denial include:
- Leaking pipes, faucets, or plumbing over time, causing damage to walls, ceilings, or floors
- Damage caused by water seeping in through cracks in the basement
- Leaks from shingles, tiles, or roofing materials that show signs of needing repair
- Mold or mildew or rust
- Old or damaged wiring
- Poor repairs or failure to make necessary repairs
When Could Gradual Damage Be Covered?
This is where things get complicated. You can find out what your insurance company will cover and what it won’t cover based on the wording of the policy. The insurance agent or broker is the person best suited to review the details with you. Ask them to review the exclusions in your policy and what type of coverage you have.
All insurance policies exclude wear and tear and gradual damage. However, there may be some exceptions. Whether your policy will compensate for the damage may depend on its wording. Here are some thoughts on when you might receive compensation for gradual damage:
Mold Issues
If mold arises as a result of a covered loss, you may have coverage to repair mold issues if you have a comprehensive insurance policy. This is not common. Additionally, you will need to ensure that you meet all policy conditions for payment to be made.
Some companies may allow you to purchase coverage for mold issues. This varies from state to state. In Texas, for example, lawmakers pushed for the inclusion of basic mold coverage in policies. The best way to find out if your policy contains this is to ask your insurance agent. You may be able to add it, but that will depend on the company.
A Tree Causing Roof Damage
Let’s say a tree fell on your roof, creating a hole that allows water to seep into the home. A claim for water damage was filed, and the hole and roof were repaired by the insurance company.
After several months, the homeowners noticed a strange smell and peeling paint near the area where repairs were made. They contacted their insurance company, which advised them to check for moisture or even mold in the area where the damage occurred, and they found new water damage.
Given
Because this gradual water damage was a result of a claim that was previously covered by the company, the company may decide to cover this damage as well.
Broken Pipes and Water Damage
Suppose there is a broken pipe or a water tank that is worsening over time, or a washing machine malfunctioning. The actual pipe, tank, or appliance will not be covered. However, the resulting damages that occur after the sudden break may be covered.
The resulting damage is different from the initial damage. For example, if water damage caused by a broken pipe or electrical appliance was recorded in your policy as being covered, a portion of the damages caused by it may be paid, even though the replacement of the pipe or new device will not be covered. This is an example of not covering the cause of the damage, but covering the resulting damage.
Why Are Claims Denied and What to Do About It?
First, if your claim is denied, make sure to request the full reason. You have every right to know exactly what part of the policy wording excludes what you are requesting and why the claim was denied.
If you still do not understand why something was not covered, you can check whether there is an opportunity to review your claim. Do not hesitate to seek a second opinion from an insurance agent or representative. In the case of a troubling event like a claim, matters may not be expressed clearly from either side. You will want to ensure you have a full understanding.
Why Was Coverage Denied?
Find out if coverage was available to you for this type of damage through endorsement. You have the right to know what is covered (or could be available) in your insurance for the future. You may also want to know why you did not have that. If you can obtain it elsewhere, you may consider changing your insurance company.
If you believe that coverage should have been available to you, or if something seems wrong, seek a second opinion from a licensed professional or a consumer advocacy group that understands insurance in your area.
Your insurance company may also have an investigator who can help you review your file. You can also contact your state’s insurance commissioner for guidance or to file a complaint.
Keep records of repairs and help you have hired over the years to maintain your home. This will be good in the event of a loss. Make sure you understand all the coverages in your policy. Have a good understanding of the exclusions and your responsibilities as a homeowner.
Maintain your home regularly every spring and fall to avoid surprises. Regular small repairs will prevent large expenses.
Make sure to purchase the best insurance that fits your needs and inquire about additional coverages that may be beneficial for you.
Frequently Asked Questions (FAQs)
Can anyone get flood insurance to protect against water damage?
To be eligible to purchase flood insurance, you must live in one of the national flood insurance communities that participate, of which there are 23,000 communities.
How much do water damages usually cost?
The cost of water damage can range from several hundred dollars for gradual damage in a limited area to tens of thousands for a major event impacting the entire home. The average water damage claim is $11,098, according to property management company iPropertyManagement.
What should I do if I have water damage?
Make sure everyone is safe and document the damage with photos as soon as possible. Even if you are unsure whether your damage will be covered, contact your insurance company via phone or through their website to start the claim process immediately.
Source:
https://www.thebalancemoney.com/how-to-handle-water-damage-claims-3860314
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