Flood Damage: How Much Does Insurance Cover?

1/25/2022 (Permalink)

A flooded home in Billings, MT.

How Much Does Insurance Cover Flood Damage?

If you ask your insurance agent if your homeowner’s policy covers broken pipes, he or she is likely to say that it doesn’t. While the actual repair of the pipe is considered a home maintenance cost, however, the flood and subsequent water damage it causes probably do fall under your coverage. You can file a claim for the cost of water restoration services under most circumstances that involve broken pipes.

Potential Damage

You will probably have to pay to fix the broken pipe out of pocket. Repairing or replacing the items it damages, however, likely falls under your insurance policy. Water from a bursting pipe can damage:

• Ceilings
  
• Hardwood floors
  
• Carpet
  
• Cabinets
  
• Walls
  
• Insulation
  
  

As long as you call experts to remedy the damage as soon as you find it, it should be covered by your insurance. If you don’t understand your coverage, your insurance agent can explain exactly what events fall under its requirements. There are several circumstances, however, that may cause your claim to be denied.

Potential Denial

A flood that occurs as the result of your own negligence will probably be denied coverage under your homeowner’s policy. For example, if inspectors discover that the pipe has been leaking water for a long time, the delay in repair could be a reason the insurance company cites for denying your claim. If your pipes freeze because they are not properly insulated, that could also be a cause for denial. If flooding involves rising water, the damage may be too extensive to fall under your general policy. You may have to rely on extended insurance coverage for those damages to be paid for.

The insurance for your home in Billings, MT, serves to protect you when a flood occurs. Timely reporting is vital for fast compensation. The sooner you arrange for repairs and file your claim, the more likely you are to be covered.