How To Buy Water Damage Insurance: My Professional Advice for My Clients
Water damage insurance is often overlooked. Statistics report that water damage insurance is essential for every household and commercial business. It is more likely for water damage to happen to your home over robberies or even fire.
However, people make mistakes with their coverage for water damage insurance. They only find out when the damage is done and they’ve filed a claim. You can avoid these problems from the start when you are thorough with your needs.
Here is my professional advice on how to buy water damage insurance for my clients.
Consider your Location
When buying water damage insurance, consider your location. Does it snow in your area? Frozen pipes are a common cause of water damage.
If so, you should definitely buy water damage insurance. When you are talking about the customization of your insurance, always check your location.
Storm Surge
Most insurances don’t cover storm surges. Storm surge refers to the action and movement by the sea. This involves high tides and low tides. When buying water damage insurance, always include storm surge damage.
That way, when a high tide, low tide, or any general movement by the sea or ocean affects the state of your home, your insurance company has the duty of covering the expenses for you.
Mold Remediation
Mold can cause water damage. There are instances when mold seeps into the water, thereby damaging the pipes and contaminating the water. Especially for people who live in old homes or the pipes’ state is unknown, mold can be a threat.
This is considered water damage. When buying water insurance, look for policies that have mold remediation. When talking to a licensed insurance salesperson, talk about how they handle water damage due to mold.
Consider Gradual Damage
Gradual damage is not often covered by insurance. Most gradual damage has to be circumstantial. Deterioration, leakage, and cracks may or may not be covered. However, when buying water damage, still consider gradual damage.
There are water damage insurance policies that cover gradual damage. You have the chance of having gradual damage under your insurance if you took preventative measures to ensure that your home was in top shape.
Once the salesman or adjuster considers your home fit for insurance, then you can have gradual damage under your insurance.
Water Damage Statistics
● The Insurance Information Institute reports that water property damage is the third leading reason for claims between 2012 to 2016. The average cost is $9,633.
● The Insurance Information Institute also reported that water damage and freezing are the second most prevalent claims after wind and hail damage. 1 in 50 insured homes say water damage and freezing happens every year.
● You are 5 times most likely to file water damage over than theft and 7 times more likely to claim it over than fire.
● In a study by Disastersafety.org, the two most common types of plumbing supply system failures are frozen pipes and toilet failures.
● The annual cost of annual water damage and removal in the U.S. is $13 billion.
● 14,000 Americans face water damage emergencies per day.
Understanding Water Damage Insurance
● Water Damage Insurance is different from flood damage insurance. Water damage is mostly covered by homeowners’ insurance unless you want special coverage. Flood insurance is a separate policy.
● Water Damage Insurance does not cover water damage due to landslides or mudslides.
● You need special coverage for water damage due to backups caused by sewer or drain water damage.
Determine your needs, and you will get the best water damage insurance coverage possible.
