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Frequently Asked Questions – Insurance & Claims
Understanding your policy and navigating the claims process.
- Does homeowner's insurance cover every kind of water damage?
- This is a crucial point of confusion for many homeowners. A standard policy typically covers water damage that is sudden and accidental, like a burst pipe or a washing machine overflow. However, it almost always excludes damage from overland flooding (e.g., from heavy rain or a rising river), which requires a separate flood insurance policy. Furthermore, damage from gradual leaks, such as a slow drip under a sink that has been neglected, is often not covered as it's considered a maintenance issue. Sewer backups are also a common exclusion, though you can usually add this protection through a special rider or endorsement. It's vital to read your policy carefully and discuss your coverage with your insurance agent to understand what is and isn't protected.
- Will filing a water‑damage claim raise my insurance premium?
- It is very likely that filing a water damage claim will impact your insurance premium at your next renewal. Insurance companies base premiums on risk, and having a claim on your record, especially a significant one, indicates a higher future risk. The amount of the increase can vary widely depending on your insurer, your claims history, the cost of the claim, and state regulations. Some homeowners see increases of 10-20% or more. It's often wise to pay for very small repairs out of pocket to avoid filing a claim and triggering a rate hike.
- Will my policy pay for hotel or rental costs during repairs?
- If your home is deemed uninhabitable due to a covered loss, your homeowner's insurance policy likely includes Additional Living Expense (ALE) coverage. This coverage is designed to pay for the reasonable increase in your living costs while you're displaced. This can include hotel bills, the cost of a rental apartment, and even money for meals if you don't have access to a kitchen. There are limits to this coverage, both in terms of total dollar amount and the length of time, so you'll need to review your specific policy to understand the details.
- Does flood insurance cover sewer or drain backups?
- This is a common point of confusion. A policy from the National Flood Insurance Program (NFIP) will only cover a sewer backup if the backup is a direct result of widespread flooding. If the sewer backs up for another reason, like a clog in the municipal line or tree roots in your service line, a standard flood policy will not cover it. For that type of protection, you need to add a specific sewer and drain backup endorsement to your regular homeowner's insurance policy.
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