Water Damage, Am I Covered

It’s getting close to Christmas time! You’re down in your basement bringing up the decorations from your storage room when you notice something isn’t right. The carpet is soaking wet. You don’t know how the water got in, but half of the basement has water damage. The cost of getting new carpet is not something you want to handle on your own.

Will insurance cover this? Well, it depends…

Are you covered?

Let me preface this by reminding you that having a CRG agent at your disposal is invaluable.

If you are in a situation where you aren’t sure if you have coverage or not, we can always discuss your situation off the record. There are a lot of tricky situations with small details determining whether coverage exists or not.

*Keep your agent in the loop, and get all the information you can before you make a decision.

Back to the water damage. Where the water came from determines if you have coverage or not.

Different scenarios

Scenario 1. It is determined that the water came from a leaky/burst pipe. Is this covered? Yes and no. The water damage caused by the pipe IS COVERED. This includes the drywall, carpet, any belongings, etc. However, the pipe itself IS NOT COVERED. So, the costs to repair the pipe itself fall on you.

Scenario 2. The cause is determined to be an overflow from your sump pump. There was a lot of rain recently causing it to overflow. Is this covered? Possibly. There IS COVERAGE IF you have what is called “Water/Sewer Backup Coverage” (see home endorsements newsletter). This is an added endorsement you can request on your homeowner’s policy, and some carriers even include this automatically. Backup from a floor drain is also covered under this endorsement.

Scenario 3. You get the dreadful news that the water came in from a crack in your foundation. Is this covered? NOT unless you have a flood insurance policy. This is also the case if the water came in through a basement window or any other way surface water can get into your home.

These are just a few possible scenarios.

*Again, contact your CRG agent to get all the information you can specific to your situation.

Claim?

So let’s say you have a situation where there is coverage for your water damage. No matter what the situation, the coverage will be subject to a deductible. The next question becomes: SHOULD I PUT IN THE CLAIM?

In case you do not recall one of the previous newsletters, “SHOULD I PUT IN A CLAIM?”, here is a quick recap.

First, you should get an estimate of what the repairs would be. If the estimate is well over the deductible you would be paying, contact your CRG agent before you submit this claim.

However, let’s say the repairs come out to be $1,900 and the coverage would kick in after you pay your $1,000 deductible. Is it really worth paying $1,000 for your insurance carrier to pay $900?

That is a conversation you need to have with your agent.

How we help

Water Losses are fairly common and very tricky. Not all are covered or worth being covered by insurance.

CRG agents have the expertise and experience to help guide you through tough circumstances and provide industry knowledge to steer you towards the right decision.

*It is okay to not know everything; we’re here to fill in the gaps. Regardless of the circumstances, your CRG agent is always putting your best interests first.

If you know of someone who could benefit from the services of a CRG agent, forward this to them!