Freehold, New Jersey
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Does Homeowners Insurance Cover Water Damage? March 8, 2018

Freehold, Monmouth County
Does Homeowners Insurance Cover Water Damage? , Freehold, New Jersey

Homeowners often overlook internal water leak damage as the most concerning home threat. A recent survey done by Chubb revealed that water leaks are a more frequent risk than fire and theft. The time that it takes between when a leak occurs and when it is discovered is the single greatest factor in determining the amount of damage.

Depending on the situation and your insurance policy, the water damage in your home may or may not be covered:

  • Gradual vs. Sudden Water Damage: Most Homeowner’s Insurance is written to cover sudden unexpected damage to your home and not water damage caused from a gradual problem.
    • If a situation occurs gradually, such as a crack in the foundation that went unfound and then allows for water to seep into the basement, your insurance most likely will not cover the damage.
    • Sudden water damage would include a pipe freezing and breaking or your washing machine overflowing and flooding the basement. 
  • Water Damage vs. Flooding: While most Homeowners policies will cover sudden water damage, they do not cover flooding. A flood is an overflowing of water from a natural source beyond its normal confines.
    • Some insurance policies may cover storm water damage to your home from a leak in the roof.
    • What they most likely will NOT cover under your Homeowners Insurance is damage to your house due to a swollen river or torrential rain.

One of the most common times for water damage to occur is when you are on vacation and pipes are left sitting dormant. A leak can go without notice for a greater amount of time causing a larger amount of damage. Only twenty-two percent of homeowners shut off the water main when going on vacation and even worse, only eighty-eight percent of people know where the water main shut off is located. Turning your water main off and maintaining the indoor temperature when away could save you a lot of money and frustration.

It is important to take photos before and after the damage, take action to prevent more damage from occurring, and give a detailed description of what happened to your insurance agent and claims adjuster. To find out more information, call NorthEast Insurance Services at (732) 972-1771 ext. 1109.

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