Water Back Up and the Importance of Flood Coverage
You come home after an enjoyable evening out to find water in your basement. The first thought is to call a plumber and then your insurance company to file a claim. When speaking with an insurance adjuster, the first question they have is what the source of the water is. Is it something inside your home or water from the outside? The source of the water and your coverages will directly impact whether your claim is covered under your homeowner’s insurance water backup endorsement or if the damage will only be covered under a separate flood policy.
Water backup coverage directly deals with water backing up from a sink or toilet inside your home resulting in damage. Flood insurance is defined as standing water on the outside of your home coming into your home. This means the water in your basement, if from the outside, would most often not be covered under your homeowner’s insurance. Water backup claims are some of the most common and costly claims and are not part of a standard home policy but must be added through endorsement.
Flood insurance is offered by certain carriers and is a separate standalone policy from your home insurance. These policies do require payment in full and are for one-year terms that can have different limits and deductibles than your standard homeowner’s insurance.
Periodic reviews of your coverage and reviewing with your agent to ensure you have these and other important coverages is always recommended even if you do not live in a hazardous flood zone or have never had a water backup claim. These coverages are often inexpensive but can save you thousands in the event of a claim.
Article by: James (Matt) Dailey, Agent and Office Manager at Kinneman Insurance