My Basement Flooded - What Will Insurance Cover?

11/4/2022 (Permalink)

If My Basement Floods, Will Insurance Pay?

When you're dealing with a flooded basement, the last thing you want to do is call your insurance company and find out that they won't cover it. Flooding can be an expensive problem without any help from your insurer. So how do you find out what your policy covers?

If you don't have flood insurance, your home insurance likely won't cover it.

Homeowners insurance doesn't cover flooding because the damage is caused by a gradual process that's not covered under most policies. However, if your home becomes flooded due to a sudden and accidental event—like an overflowing bathtub or burst pipe—your homeowners’ policy will pay for repairs up to its limit. This may be less than the cost of repair work required after a major storm or hurricane passes through an area and causes widespread flooding, which can cause significant property damage before moving on elsewhere.

If a sewer line backup caused the flood, your homeowner's insurance may cover it.

The key word here is "may."

A sewer line backup is considered an "insured peril" under most homeowner's policies, which means that if the cause of the flooding was not your fault and it occurred due to a covered incident (like rain or wind), then you should be able to file a claim for damages. However, this does not mean that your insurance will pay for all those costs; rather, the policy will reimburse you for certain expenses related to the damage caused by the flood.

If a sump pump failure caused the flood, your homeowner's insurance may cover it.

Sump pumps are designed to pump water away from the house and into a nearby drainage system or dry well. Sump pumps can fail for several reasons:

• They may be clogged with dirt or other debris.
• The battery may have worn out or died.
• The motor of the sump pump might overheat and burn out.

If your sump pump failed because of any one of these problems, then you could be covered by your homeowner's insurance policy for damages related to flooding—but only if it was caused by circumstances beyond your control. To receive coverage from this type of damage, however, there are some important factors that must apply.

Your home insurance might cover some of the cost of removing flood water and cleaning and restoring the damaged area.

How much coverage depends on your policy, but many plans will pay for a portion of these costs if you meet certain criteria. For example, if you have a claim for a fire in your basement that was caused by faulty wiring, your insurance company may pay to have the water-damaged walls torn out and replaced with new drywall. But if you’re claiming damage from an overflowing toilet or washing machine overflow, they may not cover it under standard policies. If your home has been significantly damaged or destroyed by flooding, it could be worth buying extra protection through flood insurance if you don't already have it.

If you've had a sewer line backup or sump pump failure, your insurance may cover the damage. If you're unsure about what to do next, speak with an insurance professional who can help you file a claim.