When Is a Basement Flood Covered by a Homeowners' Policy?

7/19/2022 (Permalink)

Coverage Exclusions

The basement is the lowest part of a home. It may also be prone to cracks in the walls and floors. It is thus no surprise that floods frequently occur in this location. Before your next water disaster, you should find out whether your insurance will cover a basement flood.
Your homeowners' insurance should pay for emergency cleanup and restoration services following an accidental and sudden peril. For example, insurance typically covers repairs following a pipe burst or water heater rupture.
However, not every flooded basement is covered by homeowners' insurance. Below are some exclusions of your policy.

1. Water Backup From Drains or Sewers
A homeowners' policy does not include water damage that results from fluid backing into your basement from an exterior drain or sewer. However, you can purchase separate insurance to cover this type of loss.

2. Flood Damage
Similarly, a basement flood that results from a storm or overflowing body of water is not covered by homeowners' insurance. Separate flood insurance coverage is available through the National Flood Insurance Program.

3. Damage Resulting From Poor Maintenance
If the insurer determines that the water loss resulted from your negligence, your claim will not be accepted. You thus need to perform regular maintenance checks and address leaks right away.

Available Coverage
Your policy should cover both damages to the structure of your home and harm to personal property inside the house. However, the cost of repairing or replacing the broken pipe or appliance that caused the water loss is not included.
A basement flood caused by an outside storm or sewer backup may not be covered under your insurance policy. You can purchase additional insurance to help pay for the restoration and cleanup following these disasters.
However, the cost of repairing and replacing a damaged pipe or appliance is typically excluded from insurance policies. Any floods that result from your negligence will not be covered by insurance, either. Read over your policy or contact your agent in Grosse Pointe Farms, MI, to get more information.