Do You Know What Kind of Homeowner's Coverage You Have?

1/2/2020 (Permalink)

It is likely that your homeowner's insurance policy will cover particular kinds of water damage to the inside of your home. There are several factors which will determine precisely what it covers. The type and cost of the homeowner's policy you carry will first determine the deductible, plus any limits to payouts that arise from particular claims. There are 3 basic types of insurance policies for homeowners, HO1, HO2, and HO3. 

Their different coverage restrictions and premium costs differentiate each type.  HO1 policies need lower premium payments, however, carry deductibles on the high side and might not cover some kinds of damage to the homes that are covered by other policies. HO2 policies are intermediate, and usually have deductibles that are moderate and cover a majority of damages.  HO3 policies are the most expensive and generous for insurance for homeowners. These policies give you limited deductibles and have a lot of perks which make them well worth their extra cost. 

There are cetain kinds of damages in the Vicksburg/Yazoo area which a homeowner's insurance policy does not cover.  Natural flood damage from a source has to be covered under a distinct policy for flood insurance. Homes in elevated areas or dry climates away from natural sources of water might not need flood insurance policies.  However, homes in low-lying areas along lakes, river or oceans could need flood insurance.  

The market for these insurance types is quite localized.  In areas that are flood-prone where there are regular basement floods, flood insurance can be extremely costly. This is true also in areas which regularly experience severe thunderstorms and hurricanes. The flood insurance market in Florida is regulated to lower the cost out-of pocket from the homeowners living there.   

During a weather event, if your home sustains water damage, a homeowners policy that is generous could cover your repair costs in particular circumstances. You will likely need to show your claims adjuster that the damaged happened because of a defect in the construction of your home.  This reasoning could work to explain why water seeped through a window that was sealed improperly or by the structure having a weak point.  It is not as likely to be an explanation that is adequate for water which has entered into the home clearly through an open door or window. 

A homeowner's insurance policy is likely more to cover water damage that is associated with faulty appliances, or plumbing.  This outcome, of course, is not guaranteed, either. 

SERVPRO of Vicksburg & Yazoo can help you with any water damage inside your home.