Most homeowners have no idea if their homeowners policy covers water backup at all. So it’s no surprise they are not aware this ‘Optional’ coverage even exists, yet alone how much water backup coverage they may need.
Many home insurance policies, either cover a maximum of $5,000 for water backup claims or exclude coverage all together. If this is you, you will want to re-think your current coverage. You can usually increase this to $20,000 for around $8 extra a month, or roughly two cups of Starbucks Coffee.
Water damage is the 2nd most common type of a homeowners claim. (Wind/Hail is #1) This means that water claims are both common, and can be very costly with the wrong insurance.
So how do you decide what is right for you? Ask yourself a few questions to help:
- Have you had a previous backup incident or claim? If so, what was the total damage and out of pocket expense to you?
- Do you have a finished basement? If so, ask yourself a few questions regarding your basement:
- How large is the basement? (Larger basements will cost more to repair on average)
- What type of flooring is in the basement? (Will water damage this flooring type)
- What type of wall construction is in the basement? (Cement or Drywall/Paneling – Will water damage this wall type)
- Do you have a Washer/Dryer in the basement? (This will increase your probability of a backup claim)
- Do you have Heating/Cooling (HVAC) in the basement? (This also will increase your probability of a backup claim)
Backup Claims can happen in homes without a basement but chances are greater if you do. We recommend purchasing the amount you feel comfortable will protect you from out of pocket expenses, this will keep you from depleting your savings or having to take out a loan for repairs not covered under your policy.
Please consider adding or increasing this valuable coverage to your policy today.