Just a few inches of water in your home can cost you tens of thousands of dollars without the right insurance protection. While flooding gets much of the attention when it comes to water-related damages, it represents only a fraction of the water-related losses that occur to U.S. homes every year. What are the risks of water damage inside and around your property? Would you be covered if the unthinkable happened? Continue reading to learn the ways you may be vulnerable to water damage and what you can do about it.
Who Needs Flood Insurance?
Homeowners insurance does not cover flood damage. Instead, a separate policy must be purchased through National Flood Insurance Program to protect your home’s structure and the contents inside of it.
The Insurance Information Institute recommends that all homeowners, including those who live in low-risk and moderate-risk areas, consider purchasing flood insurance as a precaution. That includes renters, who can purchase contents-only flood insurance coverage.
Flooding happens in every region of the United States, including areas that are not considered ‘high-risk.’ In fact, 20 percent of all flood insurance claims come from people who live outside the high-risk areas.
Like all insurance, flood insurance is coverage they probably never expected to use, but were thankful they had. Between 2011-2015, the average flood insurance claim was approximately $43,000. Compare that to the average annual flood insurance premium of just $700, and it is easy to see why flood insurance is an affordable and smart way to protect yourself against a major loss.
In addition to flooding, there are many hazards within your own home that could lead to major water damage. Imagine coming home from a weekend trip to find that your house has been flooded due to an overflowing toilet. If you have homeowners insurance, it is likely covered by your policy. Though water damage protection can vary from insurer to insurer, policies often provide coverage for overflows and water discharge, such as a burst pipe.
Damages Not Covered by Homeowners Insurance
Unfortunately, your homeowners insurance does not cover all water-related damages. In most cases, insurers will reject claims for damages caused by chronic, unresolved home maintenance issues, such as a leaky pipe or faucet.
Likewise, your standard homeowners insurance coverage probably excludes coverage for sewer and water backup. Though you can add this coverage to your policy in the form of an endorsement, it is something you will have to request from your independent agent here at Thiel Insurance Group.
If you do not have a sewer and water backup endorsement, you could be gambling with a significant loss. When blockages prevent waste water from draining away from your property, it can cause a raw sewage backup into your home. It can cost thousands of dollars to clean up the mess, repair the damages, and replace your belongings. Not to mention, you will probably need temporary shelter until your home becomes habitable again.
How Much Coverage Do You Need?
We know that your coverage needs are unique and should be personalized according to your risks. Here at Thiel Insurance Group, our goal is to answer your questions, provide advice, and identify areas where you may be vulnerable to loss. If you are considering flood protection for your home, do not wait to get the coverage you need. There is currently a 30-day waiting period before NFIP coverage goes into effect, and you never know how soon you might need it.
Contact us today for help obtaining flood insurance or to add a sewer and water backup endorsement to your homeowners policy. We look forward to serving you soon.