Exploring the Different Types of Property Insurance
Whether you are a homeowner or a renter, water damage is a common problem that can cause significant financial loss. The causes of water damage can range from a burst pipe, a leaking roof, or even flooding due to natural disasters. Protecting your property and personal belongings from water damage is crucial if you are a homeowner or a renter.
About one in 50 homeowners file a water damage or freeze claim every year. These claims are commonly associated with broken or leaky pipes, and the repair cost can be extensive. If the cause of water damage is negligence, like not winterizing your pipes, you may not be covered by your insurance carrier.
Interestingly, some insurance companies differentiate between different types of water damage. For instance, some only cover damage caused by natural disasters, while others don't cover damage caused by flooding. As such, it is crucial to understand the specific conditions of your policy to know what damage you are covered for and what you are not.
The most significant difference in water damage coverage is between homeowners' and renters' insurance. Today, ServiceMaster Apple Valley will outline the differences between the many kinds of water damage coverage and investigate what these differences mean for you, the tenant/property owner.
Homeowners Insurance
Homeowners insurance covers the structure of your home and your belongings in case of any damage or loss due to water damage. These policies usually include coverage for damage caused by burst pipes, leaks from your roof, and damage caused by natural disasters such as floods or storms. However, they typically do not cover water damage caused by neglect or lack of maintenance.
While homeowners’ insurance covers the building, it doesn’t cover everything within the property. For instance, if water damage is attributed to poor maintenance, the homeowner’s insurance may not cover the cost of repair or replacement. It is also important to note that homeowners’ insurance policies may not cover damage caused by floods, which may require purchasing a separate policy for flood insurance.
Renters Insurance
Homeowner insurance covers the actual building, including any attached structures like garages, fences, and sheds. On the other hand, if a renter's property is damaged by water, the liability falls on the landlord, who should have an insurance policy to cover the loss. As a result, the renter's insurance only covers the personal property the tenant owns, such as furniture, clothing, jewelry, and other items.
Difference in Coverage
Because homeowners’ insurance policies cover personal belongings and the property's structure, they are typically more comprehensive and expensive due to the higher level of coverage provided. However, both homeowners’ insurance and renters’ insurance policies have limits on the amount of coverage offered, which means that it is integral to ensure that you have sufficient coverage to protect yourself against any loss due to water damage.
Final Considerations
When protecting yourself against water damage, it is critical to be insured. Water damage can cause significant financial loss, and mitigating this loss often depends on understanding the differences between different kinds of water damage coverage. Whether a homeowner or a renter, you should ensure sufficient insurance coverage to protect your personal belongings and infrastructure.
It is imperative to read the policy carefully to understand what is covered and what is not covered by your insurance policy, including any limits on coverage and deductibles. Knowing the specific conditions of your policy before you file a claim can help you avoid unnecessary surprises when handling water damage.
Fortunately, ServiceMaster Apple Valley offers insurance assistance and benefits for both commercial and residential policyholders. We even offer continuing education classes for insurance professionals looking to expand their knowledge on this complex topic.
Are you dealing with water damage? Call (860) 850-2772 or visit our insurance page online to learn more about our services today!
