Insurance Coverage for Property Damage: What Does It Cover?

The country can experience a lot of flooding due to heavy rainfalls, storms, or other natural calamities. In such events, homeowners may deal with property damage and losses, including devastation on private property. When this happens, you need to understand what can be covered under your insurance coverage.

Does homeowners insurance cover water damage?

Generally, your usual homeowner’s insurance plan should cover physical damage to your home and the belongings brought on by water. This includes flooding resulting from natural catastrophes like storms or excessive rain. But in most cases, it does not cover damage as a result of flooding from rivers and lakes because an abrupt and unexpected event does not create it. If you reside in these areas, purchasing different flood insurance protection and your regular homeowner’s policy would be advisable.

Homeowners insurance also does not pay for damage caused by lack of upkeep, floods resulting from poor water drainage systems or sewer backups, or mold and mildew caused by inadequate ventilation. Aside from that, it may not cover repair work to basements, walls, driveways, or pathways if a flood ruins them.

Lastly, homeowners insurance coverage usually does not cover damages caused by earthquakes or sinkholes unless you have special insurance protection.

You might need to pay out of pocket prior to getting a reimbursement, depending on the scope of the damage and your coverage limits. Make sure to review the insurance plan very carefully, so you understand what is covered.

It’s also vital to note that certain flood-related losses can be tax-deductible, so keep all invoices related to repairs or replacement purchases if you’re eligible for a reduction. If you want to find the best restoration company to help you with flood damage in your home, you may check it out online to get reliable search results.

What are the common types of losses included in an insurance claim?

The following are a few of the prevalent types of losses that may be covered under your insurance policy:


  • Cleanup costs


This includes draining water from your home, removing debris and mud, mold mitigation or remediation, and other essential services. Your insurance provider can vouch for a property damage restoration business to assist you with your cleanup initiatives.

You may also find one on your own but ensure that the company has the experience and expertise to do the job to avoid further damage. Continue reading to learn more about the way it works.

  • Repair and replacement costs


Depending on the damage severity, you may need to replace or repair items in your home, including floorings, walls, furniture, rugs, electrical devices, plumbing fixtures, appliances, and HVAC systems. Your insurance plan will also cover any losses of important paperwork due to water damage.


  • Additional living expenses


If you need to leave your home while repairs are being made, you may be reimbursed for hotel stays, meals, and other costs that exceed your normal monthly spending. Your insurance provider can provide more details on this coverage.


  • Personal property damage claims


You will be compensated for any personal belongings damaged or destroyed due to the flood waters, such as jewelry, clothes, gadgets, artwork, and books. The amount of policy coverage typically depends on the limits included in your plan and the type of losses sustained.

The Bottom Line

No one wants to experience water damage to their home, but with the right homeowner’s insurance policy, any losses can be reduced, and repairs can usually be made without too much difficulty. Make sure to review your coverage carefully so you know what is covered, what kind of limits are in place, and how you should continue if a claim needs to be filed.