Homeowner’s Insurance and Flood Damage
When homeowners experience water damage, one of the first things they wonder is whether their homeowner’s insurance. The short answer is that homeowner’s insurance will sometimes cover water damage, depending on the specific policy and the nature of the water damage.
The professional water damage restoration team at Austin Fire and Flood is here to talk about homeowners insurance and flood damage restoration.
Generally speaking, homeowner’s insurance policies have some kind of coverage for water damage. However, whether or not insurance covers water damage depends on the source and scope of said damage. For example, a policy may cover damage from sudden flooding but not flooding due to maintenance neglect or misuse.
If the policy covers any kind of water damage, it will be one of two types of coverage:
Dwelling Coverage
Dwelling coverage will reimburse for damage to the physical structure of the house. If water damages the walls, foundation, ceiling, or flooring, dwelling coverage should at least partially cover the cost of repairs.
For example, dwelling coverage will pay for repairs if a pipe in a wall bursts and damages the drywall.
Personal Property Coverage
Personal property coverage protects any possessions that suffer water damage. Personal property clauses cover things like furniture, electronics, and artwork. Many personal property policies have a maximum amount the holder can claim per item and may have exemptions for certain types of possessions.
It is important to understand what kind of coverage homeowners’ policies provide. For example, a policy may provide dwelling coverage but not personal property coverage. Homeowners can usually purchase expanded plans to provide additional coverage.
What Kind of Water Damage Will Insurance Not Cover?
A typical homeowners policy does not cover certain types of water damage.
Gradual Issues
Most homeowner’s policies only cover acute water damage from a broken pipe or appliance. However, most policies do not cover gradual water damage from a leaking pipe. For example, insurance probably won’t cover water damage from a continuously leaking sink that the homeowner knew about and chose not to repair.
Water Sources
The typical dwelling policy covers water damage to the structure of the house but does not reimburse the homeowner to fix the problem that caused the flooding in the first place. For example, a dwelling policy may cover damage to walls, but it won’t cover the broken dishwasher that was the source of the water.
Natural Flooding
Virtually no standard (HO3) homeowner’s policies cover damage from natural floodings, such as rain or overflowing rivers. Flash flooding from rain storms is a common issue in Texas, so many insurance companies have separate flood coverage homeowners can buy.
Mold and Homeowners Insurance
One of the most common results of water damage is mold. A homeowners policy may cover mold damage as long as it is related to a covered issue. For instance, a policy should cover water damage and mold removal from a broken water main because the mold is directly related to the covered water issue.
However, homeowner’s policies will not pay for mold that results from a non-covered source. So if flooring grows mold because of a gradual leaking pipe, a policy may not cover mold removal or floor repairs.
If you would like to learn more about Austin Fire and Flood water damage restoration services, contact them online or give them a call at (512) 912-6814 to schedule an appointment!
