If it rains at your house, a flood can occur as well – even if you are not in a ‘high-risk’ area. According to the National Flood Insurance Program, the average cost of flood damage claims in 2015 was approximately $43,000.
It might not just be rapid rain accumulation that threatens your home. In fact, you can experience water damage attributed to many different causes. Some are covered under standard homeowners insurance, and some are not. Continue reading to learn the types of water-related losses and how you can protect yourself against potential damages.
Water Related Losses
It does not matter where it comes from; even a little water can cause enough damage to incur major clean-up and repair expenses. From an insurance perspective, however, water damages are split into four primary types of losses:
- Overflow
- Discharge
- Backup
- Flooding
Overflow occurs when water violates the boundaries it is supposed to remain in. For example, if your child closes the bathroom sink drain and leaves the faucet running, water that spills over the edges of the sink would be considered overflow.
Discharge is water that is flowing and being discharged in the wrong place. For example, a leaking pipe may discharge water into your laundry room, causing floor and wall damage.
Backup is defined as an accumulation caused when something prevents proper drainage from occurring. This might occur due to a pipeline blockage or even as a result of shared pipelines overburdened by collective storm and raw sewage drainage.
Flooding occurs when water accumulates over the ground and rises over the foundation and into your home, whether due to an accumulation of surface water or the overflow of an existing body of water.
Typical Homeowners Coverage
Homeowners insurance policies can have some variation of water damage protection, but the types of covered losses are usually uniform from company to company. Generally speaking, water damage caused by overflow and discharge are covered under a homeowners insurance policy, whereas backup, flooding, and groundwater seepage are not.
Suggested Coverage Types
While you may not be able to prevent and control water-related disasters, there are steps you can take to protect yourself against big cleanup bills in the event of unexpected damage and loss. In addition to your standard homeowners insurance coverage, we may also recommend:
Homeowners Insurance Endorsement: Water Backup and Sewer
If you’ve ever experienced a water backup, you know how easily it can cause damage to your home. In addition to destroying parts of your home and belongings, a backed up sewer system can also lead to mold and even disease if not quickly and efficiently cleaned up. Of course, calling in a professional can be expensive. Fortunately, home insurance companies offer endorsements for water and sewer backup. Coverage details and amounts vary, so contact the team here at Mid-Rivers Insurance for more information.
Flood Insurance
Flood insurance is issued by the National Flood Insurance Program. It provides building coverage, as well as contents coverage. The cost of premiums is risk-based and calculated based on whether a home exists within a flood plain or other high-risk area. Updated flood maps can be found at FloodSmart.gov.
Even if you have never experienced a flood before, it is a good idea to contact one of our agents to find out if flood insurance could be right for you. As with all insurance, you should act sooner rather than later when it comes to flood protection. The National Flood Insurance Program currently imposes a 30-day waiting period before coverage becomes effective.
Do you have flood and water backup insurance protection?
