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Fire & Water - Cleanup & Restoration

Insurance for Water Damage

6/15/2016 (Permalink)

Review Your Insurance Coverage So That You Are Adequately Covered For Damage

Consumers Need To Be Aware Of the Type Of Homeowner's Insurance Policy They Have and What It Covers In Case of Damage

It is likely that your homeowner’s insurance policy will cover particular kinds of water damage to the inside of your home. There are several factors which will determine precisely what it covers. The type and cost of the homeowner’s policy you carry will first determine the deductible, plus any limits to payouts that arise from particular claims. There are three basic types of insurance policies for homeowners: HO1, HO2, and HO3.

Their different coverage restrictions and premium costs differentiate each type. HO1 policies need lower premium payments, however, carry deductibles on the high side and might not cover some kinds of damage to the homes that are covered by other policies. HO2 policies are intermediate, and usually have deductibles that are moderate and cover a majority of damages. HO3 policies are the most expensive and generous for insurance for homeowners. These policies give you limited deductibles and have a lot of perks which make them well worth their extra cost.

There are certain kinds of water damage in Chicago which a homeowner’s insurance policy does not cover. Natural flood damage from a source outside has to be covered under a distinct policy for flood insurance. Homes in elevated areas or dry climates away from natural sources of water might not need flood insurance polices. However, homes in low-lying areas along lakes, rivers or ocean could need flood insurance.

The market for these insurance types is quite localized. In areas that are flood-prone where there are regular basement floods, flood insurance can be extremely costly. This is true also in areas which regularly experience severe thunderstorms and hurricanes. The flood insurance market in Florida is regulated to lower the costs out-of-pocket for the homeowners living there.

During a weather event, if your home sustains water damage, a homeowner’s policy that is generous could cover your repair costs in particular circumstances. You will likely need to show your claims adjuster that the damage happened because of a defect in the construction of your home. This reasoning could work to explain why water seeped through a window that was sealed improperly or by the structure having a weak point. It is not as likely to be an explanation that is adequate for water which has entered into the home clearly through an open door or window.

A homeowner’s insurance policy is likely more to cover water damage that is associated with faulty appliances or plumbing. This outcome, of course, is not guaranteed, either. Before your provider will agree to pay your claim, you’ll have to claim that the flood or leak was the cause of water bearing equipment that was poorly manufactured or repair work on an existing water line that was shoddy.

At SERVPRO of Evergreen Park/South Chicago City, we can help you get what you deserve when it comes to your insurance claim after experiencing water damage. Just call us any time of day or night at (773) 337-3900, and we will come right out to your property to assess the damage and help you through all the processes of remediation.

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