Help! I have water damage! Is it covered?

We have received the first two statements often over the last month: Help! I have water damage! The last question is something we have to ask our clients: how did the water get into your building/house? If the water entered through a drain, toilet, sewer clean-out, etc. then it would be paid under Back-up of Sewers and Drains coverage. If the water entered the building from the surface (i.e. door, window, walls, etc.), then it would be considered flood.

Is it covered?  Standard homeowners and business policies do not include coverage for water back-up or flood.  Back-up of Sewers and Drains coverage needs to be added on to your policy as an additional coverage.  Typically, a $5,000 limit will run anywhere from $35 to $75 a year depending on the insurance company.  Whether you own a home, business, or portfolio of rental properties, water backing up from sewers and drains is a distinct possibility.  Many people state that they've never had water problems and feel that they do not need the coverage.  One potential claim to consider is trees.  Trees have roots that can destroy concrete, roads and the underground infrastructure that we depend on.  This includes sewer and drain pipes.  If a tree root breaks an underground pipe and it backs up into your basement, this coverage would apply.

Flood on the other hand, needs to be purchased through the Federal Emergency Management Agency (known as FEMA).  If you are in flood zone "A", your lender may be requiring you to carry flood insurance since you are at the highest risk of flooding.  Flood insurance is building specific which means only those buildings listed on the flood policy have flood coverage.  The price of flood coverage is dependent on which zone you are in and the amount of insurance that you buy.  Note that there is a 30 day waiting period when purchasing flood insurance.  You do not have to be in flood zone "A" to purchase flood coverage. This is a common misconception in the industry.

While it is almost impossible to stop a flood from occurring, there are a few things you may be able to do to minimize a water back-up claim.  If you have a sump pump, consider a back-up sump pump.  A common occurrence is when the power goes out and the pump stops working to keep the basement dry.  A battery back-up system may keep the system up and running until the power returns, although it is only as good as the battery and may not last long enough. A generator may be another consideration to keep power to the pump.  Of course, if your home does not have a sump pump (like mine), then having this coverage on my homeowner's policy is piece of mind.

Contact us today for a free analysis! It's time well spent!