08/10/2024
PSA: water damage to your home and Insurance
First - avoid using the words Flood/Flooded. While we may think of that as our go to - unless you have a separate “Flood Insurance” policy, the cause of loss “flood” is specifically EXCLUDED in EVERY home/renters insurance policy. So don’t shoot yourself in the foot immediately when calling in a claim saying my home “FLOODED” as it’s immediate denial.
Second - insurance will ALWAYS look for the source of the damage, or cause of loss. This goes with any claim - vandalism, theft, water, fire, etc. So in this case - where did the water come from? How did it come in your home? This alone will determine if you have coverage or not.
If the water came in your home through drains, i.e. sinks, basement drain, toilets, etc. you MAY have coverage. If the water came in through the foundation/walls, windows, doors, most likely your home insurance will NOT cover it - as this by definition is Flood, and you’d need a “Flood Insurance” policy.
If the water came in through drains - now you have to check your homeowners insurance and see if you have the optional endorsement commonly referred to as Water Backup or Sewer & Drain, or a combination of these words in some fashion. This is OPTIONAL and most carriers the coverage is limited to $5,000 or $10,000. (My carriers offer up to $50,000). This can go towards paying a remediation company to help dry your home and any left over funds MAY (again depending on your endorsement) go towards the replacement/repairs of your personal property (clothes, furniture, etc) that was damaged.
Unfortunately, especially in our current market - insurance rates keep rising, and folks keep looking for cheaper and cheaper. Since this endorsement commonly starts around $80-$100 a year and goes up - many folks choose not to have it. I always encourage it with all my clients - I’ve seen too many things. Then clients may shop around and find ‘cheaper’ insurance, which doesn’t have this endorsement.
The old adage “the devil is in the details” is why insurance gets a bad wrap. Insurance carriers legally are only allowed to pay what your policy says. It’s a contract. You choose the options. You choose what coverage you do or don’t want. It’s almost like gambling. But your gambling with your most expensive possession - your home. Many think adjusters are out trying to find verbiage to avoid a claim - and I’m not saying there aren’t those out there - but most adjusters, they’re normal people with families like you and I. They’re looking for the coverage. They don’t rubber stamp declined just because.
Water is one of the most expensive and common causes of loss to insurance carriers - and it’s the trickiest to cover.
Flood insurance is also full of misunderstanding out there. I’ve seen dozens of comments/posts with incorrect information regarding flooding. Yes - you can buy flood insurance if you RENT or OWN. A home, apartment, condo, etc. I sell it. I’m licensed. I know how it works.
Yes - there are a myriad of factors to flood insurance - and fortunately we have more options now than ever before.
Fun Fact - EVERY home is in a flood zone. When folks say you’re/I’m not in a flood zone - they’re incorrect. They most likely are in the least risky zone, Zone X, which is the lowest cost zone. But it’s still a zone. It’s also the easiest to get coverage for. Majority of Kansas can buy a flood policy. Some super high risk areas are not eligible (think more coastal states/areas, hurricane prone areas, etc.)
I hope this helps…
And remember - this is why a trusted local agent is helpful. We care. We can answer questions. That 800 # you saved $200/year by switching to could care less. You’re just a policy number, not a name.
I pray everyone comes through this ok. 🙏🏼
* I feel like I should add a blurb about auto insurance. It’s the opposite. 😂 If you have ‘full coverage’ (I hate that phrase), more specifically comprehensive and collision coverage - and your car flooded - you’re fine. (Even if you thought you could make it through the two inches of water in the road that was actually two feet and now you’re car is floating. Which reminds me - NEVER drive into standing water on a road - you have no clue how deep it is) Insurance will cover you. Some carriers may want you to have collision coverage if you drove into the water. Most just want comprehensive coverage, in general, if you were driving or not. Most of these claims the cars will be totaled. (So start shopping now - most carriers only give a rental for 3 days after declaring the car a total loss. They can’t afford to pay an extra $1500 for a rental for weeks so you can leisurely shop for a new car). Typcially comprehensive coverage is for weather, hitting a deer that runs in front of you, vandalism, theft, etc.
Ok - have a great day and check on your loved ones. They may need a hand drying out or washing clothes.
*** Disclaimer: I’m a licensed insurance agent in Kansas, Missouri, and Nebraska. Every carrier has its own policy language, optional endorsements, etc. Check with YOUR agent (or 800 #) to see what your policy covers. I’d suggest calling your agent before the claims department. I tried to make this post more general, as it pertains to common policy language. Every policy and carrier is different, there is no black and white for everyone.
