Water Damage: Insurance and Financial Aspects

How Does Insurance Work for Water Damage?

Water damage is a common problem that can affect homes and businesses alike. If you experience water damage, it is important to know how your insurance will cover the costs of repair. Most homeowners and business insurance policies will cover water damage, but there are some exceptions.

What is Covered by Water Damage Insurance?

Water damage insurance typically covers the following:

Structural damage to your home or business
Damage to your personal belongings
Additional living expenses if you have to leave your home while it is being repaired

What is Not Covered by Water Damage Insurance?

Water damage insurance typically does not cover the following:

Flooding
Water damage caused by a lack of maintenance
Water damage caused by an act of war or terrorism

How to File a Water Damage Insurance Claim

If you experience water damage, it is important to file an insurance claim as soon as possible. Here are the steps to follow:

Contact your insurance company and report the damage.
Take photos of the damage and make a list of the items that were damaged.
Provide your insurance company with a copy of your police report, if applicable.
Meet with an insurance adjuster to assess the damage.
Review your insurance policy and discuss your coverage with your insurance company.
File a formal insurance claim.

Tips for Preventing Water Damage

There are a number of things you can do to prevent water damage in your home or business, including:

Keep your roof and gutters clean and in good repair
Fix any leaks in your plumbing as soon as possible
Install a sump pump in your basement to prevent flooding
Have your water heater inspected regularly
Turn off your water supply when you go on vacation