Water damage can result in significant financial losses for homeowners and businesses. Knowing how insurance handles water damage claims can help minimize the financial impact.
Most homeowners and renters insurance policies cover water damage caused by sudden and accidental events, such as burst pipes, appliance leaks, or storms.
Typically, to file a water damage claim, you should:
Insurance policies typically limit coverage for water damage to specific amounts, which vary depending on the policy. Some common exclusions include:
Insurance companies encourage policyholders to mitigate damage by taking steps to prevent further losses. This may include removing water, drying out affected areas, and repairing leaks.
Additionally, insurance companies have the right of subrogation, allowing them to pursue reimbursement from responsible third parties, such as negligent contractors or manufacturers.
In cases where insurance coverage is insufficient or unavailable, there are organizations that provide financial assistance and resources to victims of water damage. These include:
Understanding how insurance works for water damage can help homeowners and businesses navigate the claims process and recover financially from these devastating events.