What kinds of water damage does a standard policy usually cover?
Sudden and accidental water damage from inside the house, such as a burst pipe or an appliance supply line that suddenly fails. The Insurance Information Institute says most homeowners policies protect against sudden, accidental water damage like a burst pipe.
The standard HO-3 policy form, which many insurers base their policies on, covers accidental discharge or overflow of water from a plumbing, heating or air conditioning system or a household appliance. Two limits are worth knowing. First, the policy usually pays for the damage the water caused, not for the appliance or pipe that failed. Second, the sample form excludes freezing damage to plumbing unless you kept the heat on or shut off the water and drained the system, which matters if a pipe bursts in a home that was empty for the winter.
What about a slow leak that went on for months?
Generally not covered. Damage that builds up over time, or comes from a lack of maintenance, is usually excluded. The Insurance Information Institute gives a dripping air conditioner as an example of a maintenance problem.
This "sudden versus gradual" line is where many water claims are argued. A washer hose that burst on Tuesday is sudden. A drip under the kitchen sink that rotted the cabinet floor over a year is gradual. If you find old damage, photograph it, fix the leak, and talk to your agent before assuming either way.
Is a sewer backup covered?
Usually not, unless you added a sewer and drain backup endorsement before it happened. The Insurance Information Institute says sewer backups are not covered under a typical homeowners policy or by flood insurance, and the coverage has to be bought as an endorsement or separate product.
That endorsement typically covers water that backs up through a sewer or drain and overflow from a sump pump. It has its own limit, which can be well below the cost of a finished basement, and sometimes its own deductible. Look on your declarations page for "water backup", "sewer and drain backup" or similar wording, and check the dollar limit next to it.
The endorsement is for the backup, not the cause. It generally does not pay to repair or replace a broken sump pump, and it does not cover flood. In Naperville, a separate city program can help pay for prevention: the city reimburses 75 percent of an approved backflow prevention device for qualifying rain-driven sanitary backups, with approval required before work starts. See sewer backup cleanup.
Is a flooded basement from heavy rain covered?
It depends on how the water got in. If surface water or a rising river came in from outside, that is flood, and the Illinois Department of Insurance says standard homeowners policies do not cover flood damage. If it came up the floor drain or out of the sump pit, it is a backup, covered only with the endorsement.
That means one storm can create two different claims, or none. A home near the West Branch DuPage River that took on river water and also had the floor drain back up could need both a flood policy and a backup endorsement to be fully covered. Without either, the cost falls on the homeowner.
How does flood insurance work?
Flood coverage is a separate policy, often written through the National Flood Insurance Program. FEMA says there is typically a 30-day waiting period from purchase before an NFIP policy takes effect, so it has to be in place before the storm.
There are exceptions to the waiting period, such as flood insurance bought in connection with a mortgage, but you should not count on one. FloodSmart, the NFIP's official site, says most homeowners insurance does not cover flood damage, and it is the place to start if you want a quote. Flood insurance also does not cover sewer backups, so it does not replace the endorsement.
Is mold covered?
Often only when it results from a covered water loss. The Insurance Information Institute says mold is generally treated as a maintenance issue that standard policies do not cover, but if mold is the direct result of a covered peril such as a burst pipe, removal may be covered.
That is one more reason to start drying within the EPA's 24 to 48 hour window and to keep the restoration company's moisture readings. A dated record helps show any mold came from the covered event, not from neglect. See mold after water damage.
What should I do to protect my claim?
Stop the water, document everything before cleanup, start drying promptly, keep damaged items or photos of them, save every receipt, and get written scopes and moisture readings from the restoration company.
- Stop further damage. Policies generally expect you to take reasonable steps to protect the property, like shutting off the water and starting drying. Starting mitigation is usually expected, not something to wait on.
- Photograph and video everything before it is moved: the source, waterlines on walls, every room, every damaged item.
- Call your insurer to open the claim and write down the claim number and adjuster's name.
- Keep damaged items until the adjuster says you can discard them. If something must go for health reasons, such as sewage-soaked carpet, photograph it first with a tape measure for scale and keep a sample if you can.
- Save receipts for anything you buy and for hotel or meal costs if you cannot stay in the home.
- Get paperwork from the restoration company: a written scope, photos, and daily moisture readings.
Who pays the restoration company?
You are responsible for the bill, and your insurer reimburses covered costs minus your deductible. Many restoration companies will bill the insurer directly if you authorize it. Read anything you sign carefully.
Some companies ask homeowners to sign a document that directs insurance payments to them. Ask exactly what it says and what you will owe if the insurer pays less than the bill. Never sign something you do not understand on a stressful day. A good company will explain it without pressure.
How do I check my own coverage today?
Pull up your declarations page and look for three things: water backup coverage and its limit, whether you have a flood policy, and your deductible. If any are missing or unclear, call your agent.
The Illinois Department of Insurance suggests re-evaluating your coverage at least once a year and asking directly whether you need flood or sewer backup coverage. It also runs a consumer line at 866-445-5364 for questions about homeowners insurance.
For the whole picture on what to do when water gets in, including safety, IICRC water categories and choosing a company, read the Naperville water damage guide.