Homeowner Insurance: Does It Cover Water Damage?

When it comes to water damage, many homeowners are confused because they don't know what exactly is covered by their insurance and what not. Water can ruin your floors, furniture and walls which will cost a lot of money to repair. You can have other problems too, like mold which can cause serious health issues.

What is covered?

Damages from floods will not be covered by a homeowner's insurance. If you live in a flood risk area, you'll need to buy flood insurance. The types of water damage that are covered are not as serious, but they can still be a nuisance if not taken care of.

Homeowner's insurance is of three types: HO1, HO2 and HO3. HO1 is the cheapest but will not cover certain types of damages, which can include water. HO2 is the average policy, with moderate premiums and deductibles and they cover most of the damage that your house is likely to suffer. HO3 is the most expensive of all three, but it comes with a lot of perks and it covers many situations.

What is covered depends on what policy you have. It is essential to know that water damage is only covered if it's caused by external factors. For example if the temperature drops and your pipes burst, you will be covered, because it was not your fault. However if a pipe is leaking and you do not repair it, don't expect the agency to pay for the damage. As long as the water damage was caused by external factors, you will be covered.

Keep in mind that a homeowner's insurance policy will cover damages done to your interior and basement! Your lawn is not covered against water damage.

Final words and conclusion

It is important to know what your policy covers, so go and read it carefully one more time. You can raise your rates if you call your agent about a damage that is not covered by the policy.

If you live in a high-risk flooding area, it is important to buy flood insurance. You should also have life insurance for when something happens and you lose your life. In many cases, home insurance's coverage will not be enough to put your family back on track after a flooding disaster!

In conclusion, most house insurance policies will cover water damage caused by external factors. If you have a hard time finding out what is exactly covered, get help from an insurance agent or broker.

Homeowner's insurance is an important investment, but it will not help you in case of flooding. If you want to secure your family's financial future, make sure you have life insurance!