What is water damage insurance?
Most homeowner’s insurance plans include protection against unexpected water damage through water damage insurance. Water damage insurance does not cover damage from homeowners’ carelessness or neglect to keep the house in good condition. Moreover, if one is available, flooding often necessitates a different policy.
Understanding Water Damage Insurance
Many forms of water damage to real property may and should be prevented by good management since water damage insurance does not cover carelessness. This might be anything from checking for ceiling leaks during a downpour to addressing a leaking kitchen sink line before mold grows in large quantities.
One of the leading causes of homeowners’ claims is water damage. At $10,949 on average per claim, water was the third most common cause of claims from 2014 to 2018, according to the Insurance Information Institute. After wind and hail damage, water damage and freezing accounted for the second-highest claim frequency. Around one in fifty insured houses receives a yearly property damage claim due to freezing or water damage. Water damage is seven times more common than fire damage and is five times more likely to occur in your house than to result in a theft claim.
Water Damage Claim Types
Frozen pipes, which may burst due to a buildup of water pressure from freezing water in a nearby part of the pipe, and supply system material failures resulting in leaky or bursting pipes are the two most prevalent forms of plumbing supply system failures.
Plumbing supply system breakdowns are the most common cause of water damage claims, accounting for 48% of the total losses in monetary terms (averaging $5,092 per occurrence after the deductible). Of these, frozen pipes brought on 18%, and 65% resulted from a plumbing supply system component failing. With $4,400 paid in claims per event, drain system failures rank second among the most common claims sources. Another common cause of claims was a blockage in the completed basement’s sewer system.
Water heater failures that resulted in water seeping into the house were the second most common source of water damage, behind toilet failures that caused water to enter the house via the water supply line or the toilet backing up. Another common source of injury was the supply of pipes for washing machines.
Particular Points to Remember
Using steel-braided supply lines on washing machines, replacing outdated water heaters, turning off supply lines when the device is not in use, and having older houses examined by a qualified plumber every five years are all ways to reduce the risk of water damage. Do not use the washing machine or dishwasher when no one is home.
Conclusion
- Water damage insurance protects homeowners against specific types of water damage.
- Most insurance does not cover flooding or water damage brought on by carelessness.
- Plumbing malfunctions, burst pipes, and toilet issues are the leading causes of qualifying water damage.
