Home Insurance and Water Damage: Know Your Coverage

If your home floods, will your insurance cover the damage? It’s a question that many homeowners ask after a major storm or natural disaster. And the answer is…maybe.

Water damage is one of the most common types of property damage, but it’s also one of the most difficult to insure. That’s because there are so many types of water damage, and insurance companies treat each one differently.

Get to know different types of water damage coverage when you read on.

What Is General Water Damage Coverage?

Water damage can come from many sources, both inside and outside your home. General water damage coverage from your homeowner’s insurance policy can help protect your home and belongings from damage caused by water, whether it’s from a broken pipe or flooding.

Water damage can be costly to repair, so it’s important to know what your policy covers and compare home insurance companies on the extent of their coverage.

Most standard homeowners insurance policies cover water damage from burst pipes, leaking roofs, and rain or snowmelt that enters your home through an opening, like a window or door.

However, there are some limitations to this coverage. For example, most policies exclude damage from floods, sewage backups, and gradual leaks. And, if you have a septic tank, your policy may not cover damage from leaks or blockages that originate from the tank or its pipes.

Optional Water Damage Coverage

While your standard homeowner’s insurance policy will cover some types of water damage, others may be excluded. That’s why it’s essential to understand what optional water damage coverages are available and ensure you have the coverage you need.

1. Sewer Backup

One type of coverage that may be excluded from your standard homeowner’s policy is sewer backup. This is when sewage or other water backs up through your drains and home. It can cause extensive damage and be very costly to clean up and repair.

If you live in an area susceptible to sewage backup or if you have had problems with it in the past, it’s a good idea to add this coverage to your policy. Most insurers offer it as an optional endorsement, typically costing a few hundred dollars per year.

2. Overland Water Damage Insurance Coverage

The most common and costly type of damage to a home is overland water damage. Overland water is water that flows or stands on your property from another source, such as a river, lake, or ocean. This type of water damage can occur during a heavy rainstorm or when a natural disaster, such as a hurricane, causes severe flooding.

There are two types of overland water damage insurance coverage: replacement cost and actual cash value. Replacement cost coverage pays for the cost of repairing or replacing your home and belongings up to the limit of your policy. Actual cash value coverage pays for the depreciated value of your home and belongings.

3. Flooding Coverage

This type of coverage can help protect your home from damage caused by flooding. Most homeowners insurance policies do not cover flooding. So, if you live in an area prone to flooding, you may want to consider this type of coverage.

Final Thoughts

Homeowners should be aware of their home insurance policy and what it covers in the event of water damage. While most policies will cover some form of water damage, the extent of the coverage may vary. Knowing what your policy covers and ensuring you are adequately protected in a disaster might be the saving grace you will need.

If you want to ensure water damage coverage, you should book an appointment with Kirkham Insurance. We are home to the best home insurance brokers in Lethbridge, so you can rest assured that our team will help you protect your most important assets. Get in touch with us today for more information.