National Preparedness Month: What Does Your Insurance Policy Say About Storm Damage?

9/4/2018 (Permalink)

Be sure to say “Hi” to Nan if you see her out in the SERVPRO green Juke!

A large storm system moving through the area can invoke a shiver down the spine of any homeowner, but understanding your insurance policy can help alleviate those nerves. One of the most common questions that we hear when we receive calls involving storm damage is, “Is this going to be covered?” Unfortunately, as SERVPRO is not an insurance agency or affiliate, we cannot answer this question. We can encourage you to speak with your insurance provider, but we cannot offer further insight into your specific homeowner’s insurance plan. I hate giving people this answer as I know that it doesn’t give them the information that they need. As such, I spent some time this week interviewing our Marketing Representative, Nan Coleman. Nan has been in the insurance industry since 1992, in the Charlottesville area since 2005, and has experience both from writing insurance policies and owning a home. We spoke at length and put together a few points of reference to give context for a conversation that you can have about storm damage coverage with your insurance provider.

What is Traditionally Covered in a Homeowner’s Insurance Plan?

When we started talking about storm damage and the kind of coverage that you could expect to be included in your homeowner’s policy, Nan used the keywords “natural disaster” and “sudden and unexpected.” You may be used to hearing these words from your insurance agent. These keywords apply to damage occurring from lightning, hurricanes, hail, and high winds. This makes sense. I definitely don’t expect my house to get hit by lightning and I can’t think of anything more sudden.

Is Additional Coverage Available?

Based on Nan’s knowledge of the industry, we put together a few additional endorsements that you could bring up to your insurance provider to extend your coverage.

Because floods are not usually covered in a homeowner’s policy, additional flood insurance is available based on your state of residence. Nan suggests that you consider this additional insurance based on where your house is. When buying a home, your mortgage loan officer should advise you whether you will need flood insurance based on the location of your home. Your loan officer would also be a great resource to find out what the exact definition of “flooding” is in your area. If water rushes into your home but doesn’t cover enough of the surrounding area, it may not be considered a “flood”. You’ll want to be fully aware of the stipulations in your policy. Nan is confident in these recommendations. She suggests that if you were not recommended for flood insurance, but you have a finished basement and live near a water way that may flood, then you might consider flood insurance anyway. But she says that if you just use your basement for storing things and you were not recommended for flood insurance then you could consider skipping the flood insurance, storing things elevated off the ground and in plastic bins. Because the flood insurance has a few stipulations on what will constitute a flood, Nan also warns against counting on this insurance to kick in anytime you have water damage in your home. You should check with your insurance provider for this exact wording and coverage.

Another endorsement that Nan suggests exploring is sewer and drain back-up. In the recent storm event we saw multiple sump pumps that could not keep up with the water intake and so the basement flooded. This incident is usually not considered storm damage without this specific endorsement. In her experience, Nan suggests that especially if you live on the bottom floor of an apartment, have a sump pump, or drains in your basement, this would be a useful endorsement in case they cannot handle the intake. Once again, she warns that it’s a good idea to maintain drains and sump pumps. Keeping drains clear of clutter and making sure the sump pump won’t lose power is a great way to avoid a water damage and avoid a claim if possible.

A recent industry addition includes the choice to add a service line endorsement. This new option includes water damage that results from incidents including city and government owned pipes and lines that could malfunction and cause damage to a private residence. Nan was excited about this new addition as it’s the first time that this type of coverage is available, so it may not be available with every insurance policy. Your insurance provider can give you more details on exactly what this will cover or include.

You Will Want to Act Early

After listening to all these oddly specific insurance options, I wondered if you could add these options after the fact. Can you add a sewer back-up policy after your sewer backs up? With a straight face, Nan says that of course I can add these policies after the damage occurs. I was shocked. In the same breath she says, “It won’t cover the damage that already happened, but of course you can add it.” She got me, but this is an important thing to remember. There is often a waiting period between adding a policy and when it kicks in because after is too late. Nan also added, that when a large storm is predicted to hit that is also often too late to add to your policy as insurance agents will usually not write policies with impending disasters. So, the earlier the better if you are thinking of making changes or additions, and of course your insurance provider will be able to provide you with an accurate time line and restrictions on those changes. It’s at the discretion of the insurance provider how and which endorsements can be added after the original policy is written, so talking about this procedure is another great way to open the conversation with your insurance provider.

Does that about cover it?

Nan has seen a lot of storm damage and some of it isn’t covered by insurance based on the type of damage. One such type of damage is wind-driven rain. This occurs when rain, blown almost horizontally, can slip in around windows or under siding and can cause water damage to your home. Nan suggests minimizing this risk by sealing windows with caulk and creating water proof barriers where water could seep in.

My conversation with Nan was enlightening. We want to help educate our readers on the options that are available to them. As a reminder, while Nan spent many years in insurance, SERVPRO of Charlottesville is not an insurance provider or affiliate and as such cannot give definitive answers on what is covered in your specific policy. We want to share vocabulary and ideas to get you thinking and start a conversation with your insurance provider to help you become better prepared for a storm.