Homeowners insurance policies have three basic categories. HO1 policies are the least expensive, but they also carry the highest deductibles and have the most exclusions for water and other types of damage. In the middle are HO2 policies, which are the most common because they still have reasonable rates but have lower deductibles and cover more types of damage or loss. HO3 policies are on the high end of the spectrum, carrying the lowest deductibles, but with the highest rates. HO3 policies usually have the least restrictive exclusions as well.
Both HO2 and HO3 policies cover most water damage caused by an internal water source. That means if a pipe breaks or your washer leaks, the damage will most likely be covered. However, the cost to replace the faulty pipe or washer is usually not covered in your policy.
On the other hand, if water enters your house from outside, like in a flood, that type of damage is not usually covered by any homeowners policy. A separate flood insurance policy needs to be in place to make sure you’re protected in the event of a flood. If your house is in a high-flood area you may be required to have a flood policy.
Whether from a burst pipe, flood, or faulty appliance, the cost of clean-up and repairs can be more than you expect.
Is Water Damage Caused by Weather Covered?
Some policies will cover water damage due to certain weather events, but the limitations and restrictions are usually very strict. To take advantage of any coverage allowance your policy provides for such events you will most likely need to prove the damage was due to faulty construction or foundation problems.
The bottom line is that water damage that generates from water within your home is usually covered. Water that gets in to your house via a window or door and causes damage isn’t.
If you are unhappy with how your current insurance company dealt with your water damage or if you are worried you don’t have the coverage that you need, give a helpful agent a call today. They can help you compare quotes from a variety of companies to ensure you have a policy that is perfect for your circumstances.