Understanding Homeowners Insurance Coverage for Flood Damage
If your home is financed through a mortgage, then you’re required to carry a homeowners insurance policy by your lender. This insurance plan protects the lender’s interest in your property. Even if you don’t have a mortgage, having property insurance is a wise move for your home in Colorado Springs, CO. If your house is subject to certain types of damage, a policy spares you from having to pay out of pocket for repairs or replacement.
Carrying property coverage is part of being a responsible owner, but you also should know what is and isn’t covered. Flood damage, for instance, is generally not covered. Let’s take a closer look at water damage and homeowner coverage.
A Closer Look at Flooding and Insurance Coverage
Your homeowners policy does not cover damage from the following types of flooding:
- Storms and weather events
- Overflow from bodies of water such as lakes, rivers, and ponds
- Oversaturated ground
You would need to purchase a separate flood insurance policy for protection from flood damage. There are other types of water damage that you may experience in your home, some of which is not included in your coverage.
What’s Covered and What’s Not
Water damage in your home may also arise from a broken pipe, an overflowing toilet, or a malfunctioning appliance such as a dishwasher or washing machine. When it comes to your policy, coverage isn’t based on the extent of damage, but rather on whether the problem was immediate or gradual. Most insurance plans will only cover damage that is sudden and accidental.
Destruction that comes from a gradual problem probably won’t be covered by your plan. This is one reason why regular inspection of your house and its mechanical, electrical, plumbing, and HVAC systems are characteristic of responsible homeownership.
It’s important to understand the limitations and restrictions of your policy. We’ve established that sudden water damage is usually protected, but be aware of the following exclusions:
Poor maintenance: A broken pipe from a freeze seems like a no-brainer, but your claim could be denied for failure to wrap your pipes and take other preventive steps when the weather is very cold.
Source of damage: If a busted dishwasher supply line causes damage to your floors, your policy would cover floor replacement, but not the dishwasher.
Sewer or drain backup: If an outside sewer, drain, or pipeline backs up into your residence, your homeowners plan won’t cover any repairs. You might be able to purchase a separate policy to cover water backup.
When Disaster Strikes
No matter what type of water damage you experience, it’s important to contact a company that specializes in water damage repair. These professionals have the knowledge, expertise, and equipment to restore your house to pre-damage conditions. They know the best ways to expedite the process, looking for ways to lower costs by prioritizing repairs over replacement where possible.
Having homeowners’ insurance is a good idea whether you have a mortgage or not. While your policy may not cover flood damage, it can cover your costs for repair from other water problems. There’s no time like the present to become familiar with what your plan includes and excludes.