Does Homeowners Insurance Cover a Flood-Damaged Basement?

9/24/2021 (Permalink)

Homeowner insurance policies cover different reasons for flood damage.

No one ever said insurance was consumer-friendly and easy to understand. Numerous circumstances could cause a basement flood in Roanoke Rapids, NC, from a burst pipe to an overflowing toilet to a major storm. Although your standard homeowners insurance policy includes some types of water intrusion, it will not cover all possible scenarios. For example, it probably won't cover damage from a flood caused by any of the following conditions.

• Rising water from heavy rain
• Sewer system backup
• Seepage of water from underground

Adding a supplemental flood insurance policy may cover some or all of these issues. However, this type of insurance coverage is usually very limited in who can purchase it (depending on the region in which you live) and the specific situations it covers.

Does My Situation Apply?

Standard homeowners insurance will typically cover the following losses. Not surprisingly, they do have exclusions, though. Therefore, it's critical to be proactive and review your policy or speak with your agent to determine precisely what your coverage includes and excludes.

1. Overflow From Plumbing or an Appliance Mishap

Your homeowners insurance policy will generally include the flood damage resulting from an overflowing water receptacle. This coverage ordinarily includes flooding from bathtubs, sinks, toilets, and pools, as well as appliances like dishwashers, clothes washers, and water heaters.

2. Flood From a Burst Frozen Water Pipe

Loss from burst pipes, such as those connecting appliances like water heaters and refrigerators, are typically included in homeowners insurance coverage, along with air conditioning unit and sprinkler system pipe leaks. If a pipe in your home freezes and bursts, causing a basement flood, your homeowners insurance should cover the damage caused by the water. However, if the insurance company determines that you had the heat or water systems turned off during this period, they will probably deny your claim. In this case, you'll be responsible for paying the total cost of the work of the water damage restoration company and other repair services out of pocket. If you go away for a winter vacation or own another home in a cold climate that isn't continually occupied, you must be mindful of this fact and keep your home well prepared for potential winter weather.

3. Large Leak From a Faulty Appliance

Water damage caused by a faulty appliance, such as a refrigerator, washing machine, water heater, or air conditioning unit, will typically be covered by standard homeowners insurance. Keep in mind, the appliance itself won't be covered, though. The insurance policy will cover only the damage caused by the broken machine. If your adjuster finds that the damage occurred due to a lack of proper maintenance of the appliance, they can deny your claim.

No one ever wants to experience a flooded basement. Still, as with any disaster, it helps to know what standard homeowners insurance coverage usually includes. Familiarize yourself with the policy details by reading the fine details and speaking with your insurance agent. Then, if you ever face a basement flood, you'll have a better idea of what to expect regarding your insurance claim. In the meantime, be proactive about doing everything you can to prevent a water disaster.