Should I Add Water Backup Coverage To My Homeowners Policy?
Spring and fall tend to be our wettest seasons making our homes most susceptible to the backup of sewer or drain lines. When these events occur, the problem can be a small disaster. Did you know a standard homeowner’s insurance policy excludes coverage for such an event?
Water damage is the second most frequently filed homeowners claim. If you own a home, and have a basement, you should add water backup coverage. If you have a sump pump, consider installing a battery backup, it can help prevent a loss if there’s a power outage. Water backup occurs if your sump pump fails, or if water backs up through sewers or drains in your basement.
Most insurance companies offer different amounts of water backup coverage.
How much should you get? The following can can help you determine the right level of water backup coverage – a few key questions:
• Have you had any past water backup incidents? If so, what were the related costs?
• Do you have a finished basement? If so, how large is it?
• What type of flooring is in your basement – carpet, vinyl, hardwood?
• What type of wall materials – drywall, paneling?
• Does your basement have a bathroom? If so, how large is it?
• Do you have a washer and dryer in your basement?
• Do you have any heating and cooling systems in your basement?
Even with water backup coverage, many customers remain underinsured According to the Insurance Information Institute, water damage is the second-most common type of homeowners claim – only slightly less common than wind and hail damage. Water damage claims are both common and costly.
Customers who purchase a water backup endorsement typically elect minimum coverage with a limit of $5,000. Unfortunately, that often falls short of the full cost of mitigating water backup damages. The cost of clean up alone from a water backup loss is often much more than $5,000!
About one in 50 insured homes has a property damage claim caused by water damage or freezing each year. –Insurance Information Institute.
Contact us for all of your insurance needs!
Illinois and Wisconsin residents, at R Hobbs Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at (847) 680-0888 or send us a note at [email protected]. We want to help you meet your goals, and make sure what’s important to you is protected!