Wednesday, June 11, 2014

Does homeowners insurance cover water damage due to leak? What? Are you kidding me?

It is easier to state what an insurance company will cover nowadays than what it will not.
Here are the amazing answers to the questions you might have about why you 
are forced through a free country to obtain homeowners insurance when 
you have a mortgage on that home (klsb, 2014).

Water leakage is a problem and one that is not covered under homeowners 
insurance. So, the best thing one can do is to be cautious and keep a 
regular check. Homeowners insurance would typically refuse any claim 
related to water leakage over a period of time. It would be categorized
 under negligence. However, under certain special circumstances, your 
insurer may provide coverage against damage from a water leak.

Does homeowners insurance cover water damage?

Yes, it does but very specific types. Homeowners insurance would not 
cover damages from flood. Flood insurance is a separate policy that 
you need to purchase. It would also not cover damage caused by
 a leaking pipe in your home, but would cover damage from rain
 getting inside the house through a hole in the roof or a broken window
 if the hole or the broken window was a result of a storm or extreme 
weather conditions. If the water damage was due to your negligence,
 home insurance would not cover it. If you do not know what kind of 
water damage is covered by your insurance company, go through 
your policy papers for details.

If there are damages from a storm in your house make sure you
 dry all the wet areas after the storm has passed away. Provide 
air circulation to the wet areas cover them with tar if possible 
o prevent further damage. This will help minimize the possibility
 of mold growing in your home.

What duty do you have as a homeowner?

It is your duty to keep a check on all fixtures in your home. See to 
it that they are all maintained well. If there has been any water
 damage make sure you remedy it as soon as possible. Even a 
small leakage can lead to mold that would further damage
your property. It also causes health hazards like asthma, sinusitis 
and bronchitis.

Mold damage may be covered but only if it was caused by a leak
 that grew due to a storm. If your house has built up mold, 
make sure you get it cleaned professionally. Amateurs may cause it 
to spread the spores more.

Insurance companies investigate before they can give the policyholders
 their money for the loss. Adjusters inspect the areas where the damage
 occurred and they do find out if the leakage had been for over a
 period of time or if it had been a sudden outburst. So, it is no 
use lying to the insurance company. Being honest is the only option 
open to you.
                   



             Reference

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