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Understanding Your Insurance Coverage For Water Damage Restoration

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understanding your insurance coverage for water damage

Insurance policies serve as safeguards for your home or business. They can provide financial support when they fall victim to theft, criminal damage, and natural disasters. Water damage can cause immediate and long-term damage, but your insurance policy can cover some or all of the costs.

However, it depends on the type of policy you have and the level of coverage. Understanding your insurance policy can help you claim what you’re entitled to and determine whether there are any exclusions.

In this guide, we’ll cover everything you need to know about insurance coverage.

Contents

The types of home insurance

Two main types of home insurance are available: personal property and dwelling coverage. While personal property coverage safeguards your belongings, dwelling coverage ensures protection for your home’s structural elements.

Many insurance companies also offer extra coverage, often with higher premiums.

Which types of water damage will my policy cover?

Standard homeowners insurance policies offer different types of coverage, but many will provide financial support for the following events:

  • Roof Leaks: When a roof suffers structural issues due to heavy winds or storm damage, you can typically claim for any repair costs. However, if the company determines that there was negligence, such as poor maintenance, they might deny your claim.
  • Accidental Water Damage: Sudden and unintentional damage caused by sink and bathtub overflows, malfunctioning appliances, and burst pipes are highly common. Most insurance companies cover these forms of damage.
  • Snowmelt Damage: Some types of snowmelt damage fall under your insurance policy, but it depends on whether you’ve taken steps to prevent it from occurring. For example, failing to prepare your property during the will probably result in a failed claim.

Standard policy exclusions

Unfortunately, standard homeowners insurance policies often come with the following exclusions:

  • Gradual Damage: Most insurers require homeowners to report damage immediately. If poor maintenance or failure to address minor issues leads to extensive damage, homeowners insurance won’t cover it.
  • Flood Damage: Your insurance probably won’t cover flood damage, which is problematic in flood-prone areas like New York. Instead, you’ll need to purchase flood insurance covering structural damage and repairs up to $250,000.
  • Sewage Backups: Due to the severity of sewage backup, most policies don’t include it. Instead, you’ll need to purchase it separately or find an insurance company that offers sewer backup coverage as an add-on.

Purchasing flood insurance

The National Flood Insurance Program is available through FEMA and provides vital financial support for buildings that experience water damage. While many forms of damage are covered, these policies also have some exclusions.

So, even if you have a separate flood insurance policy, you might still have to pay out of pocket for the following types of water damage:

  • Sewage Backups: Many policies don’t cover sewer backups, which can be expensive. Not only will you need to worry about the initial water damage, but also its potential risks to your health.
  • Surface Water: Some flood insurance policies also exclude damage caused by lake and river overflows and rainwater flooding. However, it depends on your coverage limits.
  • Land Movement: Mudslides and landslides may occur after periods of heavy rain, but most flood insurance claims don’t cover them.

How to simplify insurance claims after water damage

Any water damage can devastate your property, resulting in long-term structural damage and mold problems. Working with a professional water damage restoration company gives you peace of mind and has specialists who will restore the property to its pre-loss condition.

Here’s how to simplify the claims process and ensure you receive the maximum possible payment.

Take emergency measures

You should switch off your water supply wherever possible to prevent further issues. However, it’s essential to remember that some forms of water damage are worse than others. For example, sewer or drain backups are often classified as black water containing bacteria and contaminants.

Exposure to black water can lead to severe illnesses and allergic reactions. Even clean water can compromise your health and safety – especially when it’s close to electrical outlets.

Document any damage

Most homeowners insurance policies will cover your personal belongings, but you’ll need to provide clear documentation of the damage. This includes taking photographs and giving the insurance company detailed notes.

The amount you receive depends on whether you have an Actual Cash Value or Replacement Cost policy. ACV coverage will pay for the loss but might not pay for the full replacement costs, while RCV replaces materials and belongings with like-for-like quality.

Contacting your insurance provider

You should also contact your insurance company as soon as possible to inform them of the damage. While this doesn’t need to be done immediately, leaving it too long might impact your ability to make a claim, as most providers have set time limits.

When you work with a professional water damage restoration service, they’ll contact the insurance company on your behalf and meet an adjuster on-site to discuss the cost of repairs.

How much money will I receive?

The amount of financial support you receive depends on your policy and whether the type of water damage is eligible. Opting for a high level of coverage is more expensive, but you’ll also have more protection and won’t need to pay for costly repairs.

All policies also have deductibles, which is the amount you’re willing to pay before the insurance policy kicks in. While higher deductibles make your monthly or annual repayments more affordable, you’ll also have to pay for a percentage of the repairs.

The insurance adjuster will also visit your property to assess the damage and decide how much to pay. This process can be challenging, but Manhattan Flood Restoration will meet the adjuster on-site and reduce water damage repair costs.

Get support for water damage today

Water damage can be complex to deal with, but the right restoration company can treat your property and reduce your total losses. Manhattan Flood Restoration offers effective restoration services across New York.

Our team of experts is fully certified and works on a range of projects, including minor leaks, storm damage, flood water, and sewage backups. If you’re dealing with an emergency, please call our 24/7 helpline at (800) 874-8146 to receive instant support.

Or, use the contact form to arrange an on-site visit.