What Water Damage Does Homeowners Insurance Not Cover?
Covered vs. Not Covered Water Damage
Florida is a hotbed for homeowners insurance claims involving water damage. The state’s high humidity, beachfront properties, rainstorms, flooding, storm surges, and severe hurricane seasons make it a prime location for excessive water damage. Storms and floods cause issues, as do plumbing problems and pipe leaks. This is a common struggle for many homeowners across the state, leading to wood rot, mold, water stains, and other property damage.
In most cases, a homeowners insurance company will accept water damage claims arising from random, sudden, and accidental circumstances, such as a hurricane or another storm. However, it may not accept claims arising from foreseeable issues, such as plumbing problems, if the claims adjuster believes the homeowner reasonably could have prevented the water damage. The typical homeowners’ insurance policy may also not cover flood damage. In most cases, flood insurance is a separate type of coverage you must purchase.
While homeowners’ insurance can cover basic water damage, it may not cover anything out of the ordinary. For example, it may cover frozen pipes but not a flash flood. A common reason for a homeowners insurance claim denial regarding water damage is a lack of flood protection insurance on the policy. Another reason is that the homeowner could have allegedly prevented the water damage. For example, if an investigation finds a homeowner was negligent in maintaining their pipes and plumbing, the insurance company may deny the claim.
Flood Damage
- Flooding: Standard homeowners insurance policies usually do not cover damage caused by floods, including damage from heavy rain, storm surges, and rising rivers or lakes.
- Separate Coverage: To protect against flood damage, you need a separate flood insurance policy, typically provided through the National Flood Insurance Program (NFIP) or private insurers.
Damage from Negligence or Intentional Acts
- Negligence: Damage resulting from negligence, such as failing to fix a known leak, may not be covered.
- Intentional Damage: Damage caused by deliberate acts or willful misconduct is excluded from coverage.
Damage from Roof Leaks
- Roof Damage: While some policies may cover water damage from a roof leak if the roof was damaged by a covered peril (like a storm), damage from wear and tear, age, or maintenance issues is generally not covered.
- Roof Maintenance: Regular roof inspections and maintenance are important to prevent leaks and damage that insurance may not cover.
Damage to Property Not Covered by the Policy
- Specific Exclusions: Certain types of property or structures may not be covered under a standard homeowners insurance policy, even if damaged by water. Review your policy for specific exclusions related to certain items or structures.
Insurance Limits and Deductibles
- Coverage Limits: Even if water damage is covered, there may be limits on the amount your insurance will pay for repairs and replacement.
- Deductibles: You must meet your policy’s deductible before the insurance coverage applies. Deductibles can vary based on the type of damage and the specifics of your policy.
How to Handle a Water Damage Claim
When dealing with water damage, do your best to limit the destruction of your property. The insurance company will check if you took reasonable steps to prevent further damage. First, take photographs of the property damage before touching anything. Then, do your best to rid the property of any standing water or hire a professional – especially if it is dangerous gray or black. Do not throw anything away. Use fans and towels to dry your property. If an insurance company believes you could have done more to prevent issues like mold, it may deny your claim or offer less compensation.
It’s crucial to contact your homeowners’ insurance company as soon as possible to report the incident. While on the phone with your insurance agent, it’s important not to admit any fault for causing the water damage. Submit any proof of the water damage you collected. Review the details of your insurance policy to prepare for conversations with the claims adjuster. Understanding what types of water damage your policy will cover and your coverage limits can give you a sense of control. Follow the agent’s instructions for scheduling an in-person property inspection and repair.
Why You Need an Insurance Lawyer for Water Damage
Claim Denials and Disputes
- Denial of Coverage: If your claim for water damage that you believe should be covered is denied, an insurance lawyer can help you understand your policy and dispute the denial.
- Disputed Coverage: If there’s a disagreement over the interpretation of policy terms or coverage limits, a lawyer can advocate on your behalf and negotiate with the insurance company.
Policy Interpretation
- Understanding Exclusions: Insurance policies can be complex and challenging to interpret. A lawyer can help you understand your policy’s terms, exclusions, and limitations.
- Identifying Coverage Issues: A lawyer can determine whether water damage is covered or excluded based on policy terms.
Legal Action
- Litigation: If negotiations with the insurance company fail, an insurance lawyer can file a lawsuit and represent you in court to seek the compensation you are entitled to.
- Bad Faith Claims: If the insurer acts in bad faith by unreasonably denying or delaying your claim, a lawyer can help you pursue additional damages for bad faith practices.