Homeowners insurance policies cover certain types of water damage. Learn what situations qualify and ways you can prevent leaks and water damage.
There's no doubt water is powerful. It can create spectacular waterfalls and carve exquisite canyons — hopefully not in your living room. Most people don't realize that even just a few inches of water can cause tens of thousands of dollars in damage to a home. Unfortunately, not all water damage is covered by a homeowners insurance policy. Understanding the limits of your insurance policy, as well as the risks of water damage and how to prevent it from happening, can help ensure you have the coverage you need — no matter what happens.
It's also important to note that homeowners insurance won't cover the cost to repair the source of the water damage, such as a broken dishwasher or washing machine.
There are a number of ways you can avoid common leaks and prevent significant water damage in your home. For example:
Water heaters and HVAC units should also have regular professional inspections to ensure everything is in working order.
Believe it or not, most homeowners and renters insurance policies don't cover damage caused by flooding. But USAA Renters Insurance does include flood coverage.
This can be a major concern since floods are the nation's most common natural disaster, See note 1 and even an inch of flood water can cause up to $25,000 in damage See note 1 .
That's where flood insurance comes in. These policies can protect you from the financial impact of flood damage in your home.
But if you think you need to live near the coast or on waterfront property to be at risk of flooding, think again. Floods can happen anywhere, and to anyone. In fact, more than 40% of flood insurance claims between 2014 and 2018 came from policy owners living outside high-risk flood areas, according to the National Flood Insurance Program See note 1
Some potential causes of flooding can include:
It's also important to note that most flood insurance policies will include a 30-day waiting period before the policy is effective. That means if there's a storm already in the forecast, it may be too late to get covered.
When you have water damage, you should contact your insurer as quickly as possible to ask them what steps to take to mitigate further issues and file a claim. You can also ask what actions, if any, you should take to clean up the area.
As soon as you're aware of the leaking or flooding, document the incident by taking pictures of the damage. Make sure to capture the affected area, any specific damaged items, and the source of the water, such as a roof leak or burst pipe.
Your insurer will ask questions about your claim to determine whether it's covered by your insurance. If the claim's covered, your insurer will send an insurance adjuster to assess the damage. If you need to make any urgent repairs before the adjuster arrives, take plenty of photos and keep all receipts.
The truth is, it's not always easy to determine whether water damage in your home will be covered by your insurance. That's why it's important to review your policy in depth, talk with your insurance provider, and make sure you have the coverage you need.
Floods can occur anywhere. Are you covered?
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Membership eligibility and product restrictions apply and are subject to change.
Property and casualty insurance provided by United Services Automobile Association, San Antonio, Texas, and its affiliate property and casualty insurance companies is available only to persons eligible for P&C group membership. Each company has sole financial responsibility for its own products.
Coverages subject to the terms and conditions of the policy.
Membership eligibility and product restrictions apply and are subject to change.
The National Flood Insurance Program is not underwritten by United Services Automobile Association (USAA) or its affiliates based in San Antonio, Texas, and is provided by USAA General Indemnity Company (USAA-GIC), through an arrangement with the Federal Emergency Management Agency. The Federal government has financial responsibility for underwriting losses. The National Flood Insurance Program USAA-GIC is not available in Guam, U.S. Virgin Islands, Puerto Rico or overseas.
The typical homeowners or rental property insurance policy doesn't include flood coverage, and in some locations, you may also need to obtain a wind-only insurance policy. Flood insurance can be purchased separately through the National Flood Insurance Program. The maximum limits of coverage available on the federal flood policy for residences are $250,000 on the building and $100,000 on contents. If you need additional flood insurance coverage beyond these amounts, you can contact USAA Insurance Agency which works with other insurance companies that provide excess flood coverage. Private flood coverage is not affiliated with the National Flood Insurance Program.
Property and casualty insurance underwritten by United Services Automobile Association (USAA), USAA Casualty Insurance Company, USAA General Indemnity Company, Garrison Property and Casualty Insurance Company, NOBLR Reciprocal Exchange, based in San Antonio, Texas; USAA Limited (UK) and USAA S.A. (Europe) and is available only to persons eligible for property and casualty group membership. Each company has sole financial responsibility for its own products. Coverages subject to the terms and conditions of the policy.