With all the storms that have been hitting the state of North Carolina recently, damage to your property caused by water may be fresh on your mind, making it a good time to review what is and isn’t covered by most homeowners policies.
First and foremost, it’s key to remember that water damage must be sudden and accidental. Anything resulting from unresolved maintenance issues that gradually causes damage is usually not covered.
There’s more to it than that, however. Our friends at Safeco have outlined some guidelines of what to expect when your home is affected by unfriendly H2O.
Occurrence: Toilet or shower drain gets clogged from an obstruction on the premises. It overflows, causing damage.
Is it covered? Yes, by the homeowners policy.
Occurrence: Tree root in the property’s yard blocks a drain and causes overflow.
Is it covered? Yes, by the homeowners policy.
Occurrence: Sewer line in the street backs up and causes an overflow through a drain in the household.
Is it covered? Yes, but only by an optional endorsement.
Occurrence: A sump pump gets overwhelmed and causes an overflow into a home’s basement.
Is it covered? Yes, but only by an optional endorsement.
Occurrence: Flooding. River overflows or dam breaks, causing water to flow over the surface into the house.
Is it covered? No, not covered by the homeowners policy or the optional endorsement.
Occurrence: Overflow originating off-premises. Sewer line breaks in the street and causes water to flow over the surface into the house.
Is it covered? No, not covered by the homeowners policy or the optional endorsement.
Occurrence: Sub-surface water. Swimming pool or sprinkler system leaks underground and causes water to seep through the foundation.
Is it covered? No, not covered by the homeowners policy or the optional endorsement.
Safeco’s homeowners policy provides coverage for water that backs up through sewers or drains as long as it originates on premises. The optional endorsement expands the coverage to provide better protection. This optional endorsement is called “Escape of Water from a Sump, Sump Pump or Drain on the Residence Premises,* and does two things. It provides a “give back” of coverage for overflow originating on premises from a sump pump or similar system that is otherwise excluded in the base contract. Also, coverage is expanded to include backup or overflow from causes originating off premises as long as the backup or overflow itself occurs on premises.
The key words to remember in any case are “on premises” or “off premises.” A simple question to ask yourself is “Are my neighbors affected by this water as well?” If the answer is no, then there is a good chance you might be covered. If the answer is yes, then you more than likely do not have a claim.
Floods are the most commonly excluded occurrences from home insurance coverage and damage resulting from flooding is only covered by a flood policy through the government’s National Flood Insurance Program.
Something else worth pointing out is that most insurance policies will not cover the source of the water damage without a specific endorsement. For example, damage caused by a busted washing machine will be repaired but the claim will not pay for a new washing machine.
As we always mention in these blog entries, every company is different, as is every occurrence. As they say in the commercials, “results may vary.” If the water source is not clear, an inspector may be sent to determine the cause of the water damage, and ultimately, if the claim is covered or not. Coverage is fact-driven and each claim will be evaluated on its own merits and circumstances for coverage determination. Decisions are ultimately left up to the adjusters at your respective insurance company.
