The last thing you need is for your expensive home to be damaged by water. Unlike other forms of damage, like those caused by the wind, water is much more insidious. Sometimes you don’t even notice the leak until it causes major damage to your walls, foundation, and flooring. Not only does water cause that type of damage, but if left long enough, it can lead to mold and mildew, both of which are difficult to get rid of.
Although most people believe that their high-net-worth insurance policies cover water damage, they are usually mistaken. Some scenarios are covered, others aren’t. So, here’s what you need to know.
Types of Water Damage
There are several types of water damage, some of which are usually covered by your homeowner’s insurance and others that require a special flood policy. They include:
- Water Damage After a Storm – This type of water damage is obvious. Large windstorms can damage roofs, gutter systems, siding, and more, allowing water to come into your home. If caught right away, this type of damage cleanup is usually covered by your insurance.
- Water Damage Due to Flooding – Flooding is a bit trickier. If your home is located on a flood plain, then you’ll need special flood insurance for these cases. Otherwise, if a nearby stream floods and fills your basement, your homeowner’s insurance policy may not pay for the cost of repairs.
- Water Damage Caused by Broken or Damaged Pipes – Sometimes pipes break, other times they get backed up, leading to water in your home. Depending on the circumstances of the leak, and whether or not the problem can be blamed on poor maintenance, your insurance company may or may not choose to help.
- Water Damage Left by a Slow Leak – This is where things get tricky. A slow leak can lead to major problems, especially if it’s allowed to continue, leading to water pooling in unusual spaces and mold and mildew damage. Since insurers usually blame this water damage on a lack of maintenance, they may not pay for any cleanup or remediation costs.
Why Do You Have Insurance Gaps?
It seems unusual for high-net-worth insurance policies to have insurance gaps, but they usually contain some of the same contingencies as standard policies. The main difference is the amount of coverage provided, which for high-net-worth policies, is rather high. Despite this, you could still end up paying out of pocket for water damage repairs.
This can be prevented by making sure that there are no maintenance gaps on your property that allow leaks to go undetected for extended periods of time. Making sure that you have flood insurance is another useful measure.
Have Questions? Contact Charlotte Insurance
Want to learn more about insurance coverage for water damage to your high-net-worth home? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.