There are several aspects of home insurance that are often misunderstood. Many homeowners go to file a claim after an accident and are surprised and frustrated to find out that the damage isn’t covered. One of the main misunderstood aspects of home insurance is damage caused by water.
As a rule, water damage isn’t covered by home insurance unless in certain circumstances or unless the homeowner has added certain additional coverages to their policy.
When Water Damage is Covered by Home Insurance
Seepage or explosions from pipes may be covered under your basic home insurance policy if the incident occurs suddenly and without warning. If a pipe suddenly bursts or a hose breaks, damage to the home and its contents may be covered. There are exceptions to this, however. Home insurance doesn’t cover damage that is caused by negligence. Damage due to poor maintenance will not be covered. Make sure to keep up regular maintenance and follow directions when it comes to preventing freezing or bursting pipes.
Additional Home Insurance Coverages that Cover Water Damage
Home insurance excludes a few disasters both natural and accidental. Thankfully, there are coverages that you can add to your policy in order to combat these dangers.
- Flood: Flood insurance covers damage caused by natural and unnatural flooding. It can help compensate for damages to the physical home and the policyholder’s personal belongings.
- Water and Sewage Backup: Water and sewage backup insurance covers damages due to sewer complications that lead to discharge or overflows from a sewer, drain, dump, sump pump or other equipment. Mechanical issues may also be covered, though negligence is still excluded.
These coverages are liable for the same exclusions as others when it comes to items that are covered. Items such as jewelry, furs and art may need to be covered beneath additional policy endorsements.
How Much is Water Damage Coverage for Home Insurance?
The cost of flood or water and sewage backup coverage depend on your location, age of the home, claims history and more. For flood insurance, most homes pay around $600 a year (around $50 a month). Water backup and sewage coverage may cost anywhere between $50 and $250 a year (about $4.16 to $20.83 a month). Before signing a home insurance policy, make sure that it has the correct coverage you need to protect against all possible incidents.