Which Types of Water Damage Are Covered by Standard Insurance?

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  • Now that summer is right around the corner, many homeowners across the country might be facing the increased threat of storms that could cause significant damage to their homes in a number of ways. A lot of these issues often arise because of water damage, but it’s important for owners to keep in mind that not all water damage is created equal in the eyes of their home insurance policy issuers. For this reason, it might be a good idea for insurance agents to take the next few weeks to go over the differences with their clients so there’s no confusion in the event that a claim has to be filed.

    As a general rule, water that comes from the sky is going to be covered, but the same is not true for when it comes along the ground, according to a report from Kiplinger’s. For example, if wind and rain combine to do a number on a home’s roof or windows — which then causes leaking — that would be covered by a standard home policy insurance. However, flooding is a different category entirely, and it’s one for which many Americans will have to buy additional coverage if they want to be adequately protected.

    What can be done about it?
    Usually, plans of the latter type are available through the National Flood Insurance Program, and can be quite costly depending upon where the homeowner lives, the report said. Those who are relatively unlikely to be hit by flooding might have to pay as little as $200 per year for the coverage, while those who are at the maximum risk for being affected by it could pay as much as $2,000 or more. Moreover, consumers should keep in mind that if they don’t have that kind of coverage, they might want to buy it as soon as possible, so that they’re not hit with a summer storm that can cause major damage while they’re counting the days until their one-month waiting period expires.

    Insurance agents who do more to educate their clients about what their existing plans do and do not cover, and the ways in which expanding plans to include more things may help them protect their homes and finances, could end up significantly improving their relationships with those consumers. That, in turn, could lead to more loyalty from customers and translate into better numbers down the road.

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