Water damage is unfortunately a common and costly home disaster. The right insurance coverage can safeguard your most important asset, your home, against water damage.
Different types of water damage are insured by different types of policies.
Homeowners and renters insurance provides coverage for burst pipes, wind driven rain, and damage resulting from ice dams on your roof. Water that comes from the top down—such as rainfall and burst sprinklers—is usually covered by a standard homeowners policy.
Some policies cover sewer and drain backups, but many do not; however, you can purchase a sewer backup rider to your homeowners or renters coverage.
According to the Insurance Information Institute, homeowners insurance may help pay for repairs if, for instance, your drywall is drenched after your water heater ruptures or an upstairs pipe bursts and water saturates the ceiling below.
Two types of coverage within a homeowners insurance policy may apply depending on what is damaged.
Dwelling Coverage
Dwelling coverage helps pay for damage to the structure of your home if it is damaged by a covered peril (e.g., if a pipe suddenly bursts and damages a wall, dwelling coverage may help pay for repairs).
Personal Property Coverage
Personal property coverage helps pay for damage to your belongings if they are damaged by a covered risk (e.g., if a burst pipe results in a drenched computer or bookcase, personal property coverage may help pay to repair or replace the damaged items).
Remember that a deductible will likely apply before your coverage kicks in. Also, coverage limits may apply. Read your policy to know how much coverage your policy provides. Your agent can help you adjust your coverage to fit your needs or answer questions about your policy.
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