Does Insurance Cover Waterproofing?

Many people who buy older homes do so completely unaware of the potential hazards that come with them. It's conceivable they have no idea what might happen if water is allowed to leak through their property or how much it can cost to fix. You might assume your insurance will pay for the repairs after a flood, but that's not always the case. One of the many considerations you should make when buying homeowners insurance is whether or not the policy would reimburse you for the price of waterproofing your property. Read on for more details and explanations, as well as solutions to other queries you may have about home insurance.

In Brief, What Does Homeowners Insurance Cover?

Before we get into what is and isn't covered by your homeowner's insurance policy, it's important to take a moment to define the terms and explain what homeowner's insurance actually is. Purchasing a home is accompanied by the purchase of insurance to protect the investment and its belongings from unforeseen perils. The fundamental motivation is a desire to offer a comfortable and safe home for our family, which makes the acquisition of insurance a necessary step. Further, most of us insure our homes because they represent our largest and most valuable investment. Since most of us need a mortgage to buy a house, the lending company has a vested interest in making sure we carry homeowner's insurance.

How does it function, then? Most of us have regular homeowner's insurance that covers things like fire, theft, and fallen trees. In fact, unless otherwise stated, the vast majority of policies will cover any reasonably foreseeable form of loss. Additional protection against losses such as pipe bursts and sump pump breakdown is available as a "endorsement" to your insurance. Then there are the "exclusions," or situations that are not covered by your insurance. Common exceptions include flooding and water seepage that occurs at or below ground level.

The Question Of Flood Insurance

Despite the increased interest in flood insurance in the wake of recent natural catastrophes, it will not cover the cost of fixing your flooded basement. Flood insurance is readily available for purchase from a variety of insurance brokers and is available to anyone living in a community that participates in the National Flood Insurance Program. Unfortunately, the coverage provided by this policy will only apply to the visible portions of your home and will not prevent any damage that may occur below ground. In addition, there are a few prerequisites that must be completed before the coverage can go into effect. If groundwater is the cause of your basement flooding, flood insurance is unlikely to help. Having flood insurance is a good idea for other reasons, but you shouldn't bet on it.

Does Homeowner's Insurance Pay For Waterproofing A Basement?   

As much as a simple yes or no to this question would be appreciated, the reality is that it is not nearly that simple. The insurance company's coverage decision for basement flooding and waterproofing will depend on many factors. Comprehensive waterproofing systems are not normally covered by standard homeowner's insurance policies. Following is how things typically go:

• In the event of water damage to your basement, your homeowner's insurance policy will typically cover the costs of repairs and determine where the leak originated. The policy would pay for repairs if the water damage was caused by something inside the home, like a burst pipe or appliance, or even something as simple as an overflowing sink or tub. However, if the water came from somewhere else, like groundwater, a lake, flooded stream, river or pond or even heavy storms, it's unlikely that the insurance company will cover the costs of repair.
• A groundwater flood in the basement might not be covered by flood insurance, even if the house is in a flood zone. The insurance company will consider this a problem caused by improper upkeep of the property because of the groundwater access points. Usually, they are openings like crevices or joints in the basement's walls or floor.

Can We Talk About Floods?

While it's impossible to predict when a storm will hit, there are steps you can take to ensure water doesn't get into your basement in the first place. If you want more security, you can get it by purchasing supplemental flood insurance coverage through the National Flood Insurance Program (NFIP) or a commercial insurance company. It's an extra expense that not many people are willing to incur, but it might protect your home's foundation and other structural elements from disaster. The best way to ensure that you are adequately protected is to purchase both building and contents insurance. If you have build insurance and an insured event occurs, the policy will pay for any additional costs to bring your home up to code. Personal property insurance, often known as home contents insurance, will help you replace stolen or damaged belongings.

Does Your Company Carry Flood Insurance?

When You Don't

Only if the water in your basement came from something out of the ordinary will you be paid for the damage. If a pipe in your home bursts or your washing machine overflows, the water damage to your home may be covered under your insurance policy. If mould develops as a result, the same logic would hold true.

If a preventable leak or prolonged exposure to high humidity caused the damage to your home, your homeowner's insurance will not pay to fix it. Insurance won't cover damage from floods if it was caused by things like river overflow or unusually heavy rainfall.

Remember that the problem's source is likely to remain unaddressed even if the losses are compensated for. A plumber would need to be called to fix the pipe or instal a new washing machine, and you'd have to foot the bill.

Assuming You Go Through With It

When sudden flooding happens, policyholders are protected in the same way as outlined in the preceding paragraph if they have flood insurance. However, the guarantee does not apply to problems that developed over time due to avoidable exposure to high humidity or leaks.

A good reason to invest in flood insurance is that it may be used to replace possessions lost due to floods and other natural disasters. A flood is defined as follows by the National Flood Insurance Program: a general and temporary situation in which two or more acres of typically dry ground OR two or more properties (at least one of which is yours) are inundated, either partially or entirely, as a result of the following: extreme precipitation; snowmelt that lasts longer than usual; rainfall that lasts longer than usual;

• Sudden and excessive surface water accumulation or runoff from any source is considered to be a flood.
• Mudflow
• Erosion and undermining caused by water currents that are higher than expected for their cyclical levels can cause the land along the edge of a body of water to collapse or subside.

Not Including Sewer Or Drainage Services.

Flood insurance and standard homeowner's policies do not pay for repairs to a flooded basement caused by a clogged sewer or basement drain. To gain the "Sewer and Drain" endorsement, a second transaction is necessary. Additionally, flooding caused by a broken sump pump falls into this category. In the event of water damage, such as that caused by a burst pipe, the insurance company will pay to have the pipe replaced, but the homeowner will be responsible for paying to have the sump pump fixed.

Groundwater And Insurance

Understanding homeowner's insurance can be even more challenging than dealing with the policy itself. Despite their seemingly arbitrary nature, these rules have a purpose. American Insurance gives two examples:

• The most up-to-date set of building regulations insists that the foundation be built in such a way that excess water can drain away from the home. Poor grading, unstable soil, or major flood events in the past may have meant that older homes didn't adhere to these procedures, or that water found a way to begin pooling underneath alongside the home. It's possible that this occurred either way. Homeowners would have no incentive to fix water seepage through the foundation if it was covered by their insurance policy.
• Multiple claims would be filed following each episode of extreme weather if these events were covered.
• Over time, the soil beneath any foundation will shift, causing cracks and eventually the collapse of the structure. Damage from "wear and tear" can necessitate a homeowner excavating around the foundation (and basement/crawl space) to instal drain tile or another type of waterproofing material, as well as patching and resealing the concrete walls of the foundation and basement. Having this type of water damage covered by homeowner's insurance would remove any financial motivation for homeowners to make necessary repairs or improvements.

Your basement leak may not be covered if it was caused by an act of nature such as heavy rain or flooding. In order to avoid a disastrous situation, it's best to take as many precautions as possible to ensure that the house is protected from water damage. Those who have experienced recent flooding in their homes may not find this article helpful. Homeowners' insurance, on the other hand, will typically pay for the initial cleanup and will refer their customers to reliable waterproofing companies to fix the problem permanently. Unfortunately, this is often where insurance involvement ends when it comes to the topic of waterproofing a basement.

When Does Homeowners Insurance Not Pay For Flooded Basements?

DIY disasters are not covered by insurance policies. A broken pipe is probably covered by your insurance policy. However, your insurance will not cover any losses that occur as a result of your actions if you attempt to repair a pipe on your own and fail to do so in the proper manner. It's possible to attribute lack of maintenance to botched do-it-yourself projects, just as it's possible to attribute lack of maintenance to the improper repair of appliances and other components.

Insurance Doesn't Cover Basement Waterproofing

You decide to hire a contractor to waterproof the basement because you just finished mopping it out again after a heavy spring downpour. The contractor will inspect everything thoroughly, then explain the problem and give you a written estimate of the amount of work needed to fix it.

You've made up your mind to call your insurance agent, so you do just that. OK, maybe not. Most homeowner's insurance policies do not include coverage for the cost of basement waterproofing services, so even though your agent will likely have some sympathy for your plight, they will not be able to do much more to help you.

What Circumstances Call For Contacting Your Insurance Company?

After reading this, please contact them as soon as possible. Your agent will be able to help you make sense of the policy language and the myriad ways in which water can cause damage, so long as you ask them for clarification.

How Can I Protect My Home From Flooding?

Get in touch with a firm that works specifically on basement waterproofing. They can check out your basement and do whatever needs doing to help you save money on costly repairs. A professional can do things like seal cracks and replace leaking pipes to make sure your basement is completely watertight.

What Services Can Basement Waterproofing Companies Offer?

There are a number of options for defending against basement and foundation damage caused by things like groundwater seepage. One can choose from full systems consisting of drain tile, dehumidifiers, sump pumps, and other components, or they can opt for partial systems that deal with less severe water problems. Unfortunately, because every home is different, there is no foolproof way to protect the basement and the foundation. Consequently, it is always advised to consult experts for advice on the best way to proceed for your property.

In a precarious situation like this, having homeowners insurance might not be the best investment, but having a trustworthy waterproofing professional might be a godsend. Because of the frustration that has resulted from the lack of protection in these instances, many companies now offer free assistance in the form of a service to those looking for loans and other sources of financing for all kinds of projects. You won't have to worry about losing the home or its contents or being forced to come up with money you don't have if you have homeowners insurance.

Numerous basement waterproofing services offer no-cost initial consultations and price quotes. Technicians will conduct a thorough investigation of the home to safeguard it against the destabilising impacts of groundwater. During this time, they will look for probable points of entry for water and humidity and develop a comprehensive protection strategy.

Conclusion

Many new homeowners of older properties don't realise the dangers they're inviting into their lives. If you have flooding, you may think your insurance will cover the costs of repairs. Infrequent but notable instances include instances of flooding or water seepage that happens at or below ground level. However, while having flood insurance is a good idea for other reasons, you shouldn't put all your eggs in one basket. Most standard homeowner's insurance policies will not pay for the cost of installing or repairing a complete waterproofing system.

Even if the home is in a flood zone, flood insurance may not cover damage caused by groundwater flooding in the basement. Additional flood insurance coverage can be purchased if extra protection is desired. If a flood is caused by a river overflow or extremely strong rainfall, insurance will not pay for the repairs. Getting both property and liability insurance is the best way to safeguard your possessions and your home. The National Flood Insurance Program defines a flood as an area of two or more acres that has been suddenly and excessively flooded by surface water accumulation or runoff from any source.

The failure of a sump pump to prevent flooding is not covered by Sewer or Drainage Services. When "wear and tear" causes damage to the foundation, a homeowner may need to excavate around the structure (and the basement/crawl space) to instal drain tile or another type of waterproofing material. Typically, basement waterproofing services are not covered by homeowner's insurance policies. Communicate with a company that specialises in waterproofing basements. A specialist can help you make your basement watertight by fixing things like cracks and leaking pipes. Initial consultations and cost estimates for basement waterproofing services are always provided at no charge.

Content Summary

1. If you have flooding, you may think your insurance will cover the costs of repairs.
2. Thinking about whether or not the cost of waterproofing your home is covered by your homeowners insurance policy is only one of many things you should do before making a purchase.
3. It's necessary to clarify the terms and explain what homeowner's insurance actually is before we get into what is and isn't covered by your policy.
4. When you buy a house, you also buy insurance to safeguard your financial investment and the valuables within.
5. Lenders have an incentive to ensure that we have homeowner's insurance because most of us need a mortgage to buy a house.
6. The vast majority of us carry standard homeowner's insurance to protect against disasters like fire, theft, and tree falls.
7. Then there are the "exclusions," or events for which your policy does not provide coverage.
8. Although there has been a surge in the purchase of flood insurance in the wake of recent natural disasters, that coverage will not extend to the expense of repairing your flooded basement.
9. Basement flooding caused by groundwater is not often covered by flood insurance.
10. However, while having flood insurance is a smart idea for various reasons, you shouldn't put all your eggs in one basket. There are a number of elements that will determine whether or not an insurance company will pay for repairs related to basement flooding and waterproofing.
11. Most ordinary homeowner's insurance policies will not pay for the cost of installing or repairing a complete waterproofing system.
12. The usual course of events is as follows:
13. If water seeps into your basement, your homeowner's insurance will likely pay to get it fixed and investigate the source of the leak.
14. Even if the home is in a flood zone, flood insurance may not cover damage caused by groundwater flooding in the basement.
15. Despite the fact that you can never know precisely when a storm will strike, there are measures you can take to prevent water from entering your basement.
16. If you'd like an extra layer of protection, additional flood insurance coverage can be purchased through either the National Flood Insurance Program (NFIP) or a private insurance firm.
17. Getting both property and liability insurance is the greatest method to safeguard your possessions and your home.
18. The water damage to your property caused by a burst pipe or an overflowing washing machine may be covered by your homeowner's insurance.
19. Your homeowner's insurance policy won't help you if a leak or high humidity that might have been avoided damaged your home.
20. The damage from floods caused by things like river overflow or abnormally severe rainfall is not covered by insurance.
21. Policyholders with flood insurance are safeguarded in the same way as described in the previous paragraph in the event of sudden flooding.
22. Having flood insurance in place is a smart move because it may be used to repair property damaged or destroyed by floods or other calamities.
23. Repairs to a flooded basement due to a clogged sewer or basement drain are not covered by either flood insurance or ordinary homeowner's policy.
24. There is additional effort required to obtain the "Sewer and Drain" endorsement.
25. Another example is when a sump pump fails and causes flooding.
26. It can be more difficult to understand homeowner's insurance than to actually deal with the policy itself.
27. The foundation must be constructed such that excess water flows away from the house in accordance with the most recent set of building requirements.
28. There would be no incentive for homeowners to address water seepage through the foundation if it were covered by insurance.
29. Damage from "wear and tear" can need the installation of drain tile or another type of waterproofing material, as well as the patching and resealing of the concrete walls of the foundation and basement.
30. The lack of financial incentive for homeowners to undertake repairs or improvements due to water damage would be mitigated if such damage was covered by homeowner's insurance.
31. If the leak in your basement was brought by by natural causes like flooding or severe rain, your insurance policy may not pay for the repairs.
32. It's advisable to take all the measures you can to prevent water damage to the home to avoid a tragic outcome.
33. In many cases, this is where the insurance company's engagement in the matter of basement waterproofing ends.
34. Your insurance policy will most likely cover the cost of repairing a broken pipe.
35. You've decided to give your insurance agent a call, so you do.
36. Although your insurance agent may undoubtedly feel sympathetic towards your predicament, they will not be able to do much to help you because basement waterproofing services are typically not covered under standard homeowner's insurance policy.
37. Basement and foundation damage from factors like groundwater seepage can be defended against using a variety of methods.
39. There is no surefire method of protecting the basement and the foundation because every house is unique.
40. Therefore, you should always seek the opinion of professionals before making any decisions regarding your property.
41. Homeowners insurance may not be the best bet in a precarious circumstance like this, but a reliable waterproofing expert could be a lifesaver.
42. If you have homeowners insurance, you can rest easy knowing that you won't lose your home or its contents and will never have to come up with money you don't have to replace them.
43. Numerous businesses that specialise in waterproofing basements provide free estimates and consultations.