Will My Insurance Pay for Water Damage?

8/17/2022 (Permalink)

Drying up after water damage in a residence in Dublin, CA.

If you have sustained damage from water in Dublin, CA, and need to calculate the cost of fixing it, you might wonder if you should file an insurance claim. If you have homeowners insurance, you may think that filing a claim is the best decision — after all, if you pay for insurance, you should be able to use it. However, it may be in your best interest not to file a claim. In fact, depending on how the damage occurred in the first place, you might not have a claim at all.

What Type of Water Damage Does Insurance Cover?

Damage from a water source is usually covered by insurance if the cause is sudden and accidental. A few examples of this include:

• Burst pipe
• Rain or snowstorm
• Damage from extinguishing a fire
• Sudden appliance failure

If you need water damage repair after a sudden accident, your insurance can help pay for related expenses.

Insurance will not cover damage resulting from events caused by lack of maintenance. If, for example, your roof leaks because of loose shingles that haven't been fixed, or if a pipe rusts over time and bursts, you will not have a valid insurance claim.

Flood damage is also not covered by insurance. You can, however, purchase home flood insurance under a separate policy.

Why Should I Think Twice About Filing a Claim?

There are no hard-and-fast rules about how an insurance company decides whether to accept a claim, or whether they will raise your rates afterward. It is in your best interest to talk to your agent ahead of time so you understand your coverage before a disaster occurs. If the cost of damage repair is minimal, paying for it yourself might avoid a rate hike. If you have catastrophic damage, you will probably want to file a claim, but the insurance company may still raise your rates.

If you want to know exactly what your options are for an insurance claim, the best thing you can do is talk to your agent. You will have the knowledge you need if you sustain water damage to your home.