What Is Water Damage Insurance And How Much Does It Cost?

8/25/2020 (Permalink)

Is this enough to call your insurance company?

Water damage coverage can be a complicated issue, but it is also one of the most important parts of any homeowners’ insurance policy. 

When you consider that every year one in 50 homeowners will file a water damage claim, you can begin to understand why having the best possible coverage is so important.

So while everyone can agree that it is crucial for every homeowner to have some sort of coverage for water damage, the intricate part of the equation is determining exactly what a specific policy covers and how much is water damage insurance. 

Costs can vary drastically from one company to another and depending on what specific type of coverage you opt to carry.

So what is water damage coverage on homeowners' insurance?

In general, most homeowners’ policies cover damage that is considered “sudden and accidental”.

This can include burst pipes, accidental leaks, and water damage after a fire. This doesn’t include damage from floods or other natural disasters, however, which will require separate coverage.

Damage that occurs through neglect or from intentional acts like turning your water off for the winter will not be covered. 

Even in the case of damage that is covered if your insurance company believes that the damage was made worse because you didn’t act quickly enough to mitigate it, they may refuse to cover it or cut back on the amount they pay out.

According to Forbes, the average cost of a water damage claim is $10,900 (https://www.forbes.com/advisor/homeowners-insurance/water-damage/) and with so many claims being filed each year, it’s easy to see why your insurance company might be hesitant to provide full payment on every claim.

So the more you can do to help your case, the better your chances of getting significant reimbursement

Of course, the amount of your deductible will affect how much you’ll get in return, as that cost will come off the top of your claim.

Also, the type of policy can affect how much you can get in a claim.

Cash value policies only guarantee the current value of your property, taking wear and tear into account, while a Replacement value policy will give you the full amount of a new item.

While specific policy prices can vary from company to company, when asking how much is water damage insurance the answer can depend on certain steps you can take to help reduce your costs.

You should always shop around and never be afraid to ask any relevant questions so that you can compare each company’s prices and know exactly what you’re getting.

In many cases, you can also save yourself money in the long run by raising your deductible. (https://www.iii.org/article/how-to-save-money-on-your-homeowners-insurance)

Since the amount you get from a claim can depend on how quickly you respond when disaster strikes, you can also help to save yourself money by hiring a professional water remediation company like SERVPRO. 

Not only can SERVPRO address your water damage thoroughly with our trained professionals and high tech equipment, but we can also help you file your insurance claim so that you can get the best possible result.