Water Damage House Insurance
There is a very big difference between water damage house insurance and flood insurance. Knowing the difference will help you be better prepared, and meet your needs with the smallest out of pocket expenses. Here is a list of the benefits and the payouts for different issues and how your water damage insurance will cover each.
First Things First, What is a Flood?
Anything considered to be related to flooding is absolutely not covered by water damage house insurance under any conditions. This includes damages that are done by a river, lake, or stream overflow. Also, flooding includes a wet basement as a result of too much rainfall. Also, events like mudslides are very often considered to be flood damage, and would be covered only by a flood insurance policy.
As you can see, flood insurance is highly specific and often supersedes a water damage policy in that it is nearly all-inclusive. Flood insurance, however, is highly expensive, and in some damage-prone areas, available only from the Federal Emergency Management Agency, or FEMA for short.
Many people confuse storm damage with flooding, so it is important to differentiate the two. Storm damage is that which results from a storm, but not a flood. One such scenario would be a leaky roof. Since storms are known to greatly reduce the integrity of your roof, it is likely that in such event, water will rush into the home through any holes or gaps in the roof. Water damage house insurance would cover all repairs, and homeowners insurance would cover any structural issues.
Leaky Plumbing and Appliance Water Lines
A refrigerator connected to a water line could be leaking for months or years before it is discovered. Since a number of refrigerators are now connected to water lines, and dishwashers have been linked to lines for years, significant water and mold damage can result from a only slightly damaged water line.
Restoring years of water drops and mold can cost thousands of dollars even for a few square feet of flooring. And, just because the conditions don't look poor on the top of the floor, don't be surprised if there is damage deep in between the top floor and the foundation. Wood rot is a very common problem in water damaged homes and can greatly affect a home's structural integrity.
In the cold winter months, frozen plumbing can become a ticking timebomb. In areas that are near perennially cold, and those where the temperature is lowest during winter, water damage insurance may be necessary if only to protect against water damage resulting from frozen pipes.
Frozen pipes become a danger when, after freezing, the pipe breaks and hundreds of gallons of water pour out the piping and into the walls, floors, and foundation of your home. This kind of damage, if left to run for some time, can be costly, and the repairs can take weeks to a month. Luckily, your water damage home insurance will absolutely cover this damage.
High Deductibles are Okay
When water damage comes, rarely does it come in a trickle. As you can see from the above possible damages, most are widespread and expensive, and few are inexpensive repairs. As such, plan to have a reasonable deductible that you can afford to pay out of pocket, but don't go too low. Low deductibles on a very expensive but rare problem mean unnecessarily large monthly premiums.
Water damage house insurance should be purchased in tandem with flood insurance. If purchasing from the same provider, you'll help avoid costly gaps in coverage and protect your home from water threats of all types.