What is Water Damage Insurance?
Water damage insurance provides crucial protection for homeowners against unexpected and accidental water-related damages. However, it does not cover damages resulting from the homeowner’s negligence or lack of upkeep. Additionally, separate flood insurance policies might be necessary to protect against flood damage.
Key Highlights
- Comprehensive Protection: Water damage insurance safeguards homes from specific types of water damage events.
- Exclusions: This insurance generally excludes coverage for damages due to homeowner negligence and floodwaters.
- Common Hazards: Burst pipes, plumbing failures, and toilet issues are leading causes of eligible water damage claims.
Understanding Water Damage Insurance Coverage
Proper home maintenance can prevent many types of water damage that are not covered by insurance. Routine checks and timely repairs can safeguard against incidents like leaky roofs or mold growth from undetected drips.
Water damage is a significant contributor to homeowners insurance claims. Data from the Insurance Information Institute shows water was the third-leading cause of claims from 2014-2018, with an average claim value of $10,949. Annually, approximately one in 50 insured homes files a water damage or freezing claim. Homeowners are five times more likely to file a water damage claim than a theft claim, and seven times more than a fire claim.
Common Types of Water Damage Claims
Homeowners mostly file claims for two main types of plumbing supply system failures:
- Frozen Pipes: Ice formation can cause pressure build-up and burst pipes.
- Material Failures: Deterioration or defects in plumbing fixtures leading to leaks or bursts.
Plumbing system failures result in higher costs, averaging $5,092 per incident after the deductible. Of these claims, 65% stem from material failures, and 18% from frozen pipes. Drain system failures lead to another group of claims, often averaging $4,400 per incident. Sewer backups in finished basements also contribute significantly to these claims.
Toilet failures, including malfunctions at supply lines or sewer backups, are the second-largest cause of water damage claims. Other frequent sources include failed water heaters and washing machine supply line issues.
Expert Tips to Prevent Water Damage
Regular maintenance and timely updates can significantly reduce the risk of water damage. Consider these recommendations:
- Regular Inspections: Have a licensed plumber inspect older homes every five years.
- Water Heater Maintenance: Replace outdated water heaters to prevent leaks.
- Upgraded Supply Lines: Use steel-braided supply lines for washing machines and turn them off when they are not in use.
- Safety Measures: Avoid running household appliances like dishwashers or washing machines when no one is home.
By following these proactive steps, you can protect your home from unexpected and costly water damage incidents.
Related Terms: homeowners insurance, flood insurance, plumbing supply system, deductibles, sewer backup.
References
- Insurance Information Institute. “Facts + Statistics: Homeowners and Renters Insurance”.
- Disastersafety.org. “Prevent Water Damage from Plumping and Appliances”.
