Does homeowners insurance cover plumbing

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Whether you're a first-time homeowner or you have owned a property for years, don't underestimate the need to get your homeowners insurance. A homeowners insurance policy will cover most damages to your home. These include fire, water, and natural disaster damage. Besides covering the structure and outbuildings, this insurance policy also bears the repair and replacement cost of your home's heating and cooling system.

Thus, it's clear that a homeowner insurance policy is a crucial way to save yourself from financial troubles if something happens to your home. However, if you are worried about whether your homeowner's insurance policy covers your plumbing costs or not, this article is here to help. We'll discuss all plumbing-related issues covered by this insurance policy and how to get one. So, let's dive right in!

Does Homeowners Insurance Cover Plumbing Damage?

A homeowners insurance policy covers plumbing, including all the natural or accidental plumbing issues in your home. For instance, if your basement's water pipe breaks suddenly and water is all you can see, this insurance policy will pay for its repair and replacement.

But if any preventable damage occurs, like gradual leaks or frozen pipes, a homeowners insurance policy isn't responsible for that. You should be careful beforehand to save yourself from paying additional and unnecessary costs. Here are a few types of homeowners insurance covers:

Dwelling coverage

This coverage is for the damage to your home structure and appliances. If your home is damaged due to some leaking or burst pipe, or your home's heating system is malfunctioning, dwelling coverage will pay for these things. Wet floors and walls are also repaired under this coverage. But if the damage is due to the whole plumbing system, the insurance policy isn't likely to pay for it.

Personal property coverage

Personal property coverage pays for the damage to your personal belongings. For example, if a broken pipe has affected your jewellery, clothes, etc., the homeowner's insurance policy will pay for it.

Additional coverages

Additional coverage or loss of use coverage means the insurance will pay for all the hotels, restaurants, and other different bills after a covered loss. Additional bills mean that, for example, if your home is flooded due to some internal plumbing issue and becomes unliveable, your loss of use coverage will pay for all the places you stay during the repair process.

Other structural coverage

Other structural coverage pays for the properties that are separated from your main living home. If your detached guest house or garage gets any structural damage, the homeowners' insurance policy will pay for the damage up to the coverage limit.

Once you detect any plumbing issues, you should immediately claim the homeowner's insurance claim. However, you will need to pay the policy deductible fee. This is a small amount that you spend on every claim before your insurance comes to rescue you from financial troubles.

Damage Not Covered By Homeowners Insurance

Home appliances and plumbing systems often face minor issues due to excess usage. If there's a minor leak in your bathroom or kitchen, try to fix it yourself rather than calling the insurance team to do it for you. But if you intentionally ignore the minor leakage and it destroys thousands of dollars of property, then the insurance policy will most likely not support you.

Here are a few examples of various issues and areas that don't fall under the supervision of homeowners insurance policy.

Everyday leaks

As a homeowner, you should closely monitor the daily wear and tear of items in your home. If any of your pipes have a leakage that's obvious and open, the insurance policy will not pay for it. Damages caused by the installation of improper lines or poor maintenance are also not supported by your homeowner's insurance, and they can deny your claim.

Mould growth is also not included in the list of homeowners insurance coverage. So, it is necessary to repair and fix any minor issues by yourself and quickly. In this way, you can save thousands of dollars.

Frozen and broken pipes due to negligence

If you go on a vacation in cold weather and forget to turn on the heating system, the pipes will freeze. This frozen pipe will burst after some time, causing flooding or a water leak in your home when you return. In this condition, if you contact your insurer, he will declare the damage negligence because you didn't take proper precautions.

Hence, the insurance company will deny your insurance claim. Although freezing pipes are a common thing, you need to ensure that it doesn't happen due to carelessness.

Flood damages

Undoubtedly, the homeowner's insurance policy covers water damage due to plumbing issues. However, this policy doesn't cover the destruction caused by heavy rainfall. As such, if you are living in an area where there's a high risk of flooding, consider asking your insurance company about other options that can back up your loss.

Sump pumps and sewer damages

The homeowner's insurance policy doesn't cover any damage from sewer lines or clogged pipes. If your sump pump overflows or gets blocked, the insurance policy will not cover that damage. You will need to consult the insurance company to provide other home insurance cover options.

Old and worn-out steel plumbing

Pipes made of galvanised steel and polybutylene were highly popular in homes made during the 20th century. If your dwelling was built during that time, there are high chances you also have old plumbing. Public water that is rich in chlorine, when passed through these pipes, weakens the pipes and eventually results in sudden bursts.

If your old plumbing gets damaged, the insurer will reject your claim. Hence, it is suggested to change your old plumbing before signing up for a homeowners insurance policy.

Added Premium Homeowners Insurance Cover

As mentioned earlier, certain types of damages aren't covered by the standard homeowner's insurance policy. But if you live in areas prone to heavy rainfall or have an outdated plumbing system, you can get some premium options. Consult your insurer and ask about the other premium options that can cover such issues. Let's have a look at what premium insurance can cover:

Service line coverage

Service lines, also known as utility lines, are the sewage pipes and systems in your home. Your ordinary insurance policy doesn't cover any damage to these lines. However, you can request the parent insurance company to add this coverage option to your package. You'll have to pay a minor sum of $30 to $40 every year separately for this service.

Mould damage rider

The standard homeowner's insurance policy covers naturally occurring mould and hidden mould. You may also get compensation for the decay caused by leaks hidden in your walls. But the insurance companies have a limit of $1000 to $10,000 for mould removal and remediation.

The overall process can cost up to $30,000, which is way above the coverage limit. If you face this issue, a mould damage rider can help. This optional feature in your homeowner's insurance adds up to your overall mould coverage cost. The coverage cost then goes above $50,000, which is more than enough.

Flood Insurance

Any damage or reason for damage that isn't connected to your home isn't backed by your homeowner's insurance policy. So, if you live in a floodplain area, you should consider getting flood insurance to secure your belongings.

You can contact your insurer and ask if they can add this flood coverage to your standard homeowner's insurance. If not, you can get a standalone flood insurance policy from your National Flood Insurance Program at an average of $738 per year.

How To Make A Plumbing Insurance Claim

Under normal circumstances, your insurance will cover the above-mentioned plumbing-related issues. So, you should immediately make a plumbing claim if anything happens to your insurance-backed areas and appliances. These are the four steps you should undertake for a successful and on-time claim:

Get the damage under control

In case anything happens to your water pipes, you should not try to completely resolve the issue until the insurer visits and assesses the situation. However, you should get the situation under control. For example, if there's a water leakage issue, you should quickly turn off the water supply system of your home to avoid any mess or flood. Don't forget to turn your electricity off to avoid getting electrocuted.

Collect evidence

The next step is the collection of evidence. For this purpose, take many pictures and videos of the water leak and its damaged areas. Also, look around carefully and gather everything that can make your claim strong. It is always suggested to follow this step; otherwise, your insurance claim may not appear strong enough.

Call the insurance company

Once you've discovered the malfunctioning area, you should immediately notify your insurance company. Almost all insurance companies have customer service available to address people's concerns 24/7. Call on that number and tell the company about your issue.

Get help

Check your policy details, and you can now attempt to get some assistance to fix the issue. Visit multiple contractors in your area and choose the one that suits your budget. You can later ask the contractor to join the meeting with the insurer to solidify your insurance claim based on their inspection. If you have followed the insurance policy carefully, you'll soon receive your compensation.

Steps When Denied Homeowners Insurance

There are multiple reasons your insurance claim could get denied. Sometimes it's due to a legitimate issue, and sometimes it's due to an error. If you have faced a property loss and your insurer has denied your claim, here's what you should do:

Understand why your claim is denied

After denying your insurance claim, the company will send you a notice or letter explaining its reason. Carefully read that letter and check if it satisfies your understanding of your insurance policy. For instance, if you have an unpaid premium or the insurance doesn't cover that damage, there's nothing much you can do.

However, if the explanation from the insurance company doesn't satisfy you, contact your insurance adjuster or agent immediately. They can help you in getting coverage for that loss.

File an appeal

If you think that the insurance adjuster isn't helping you in this matter, you can file an appeal. The process for this appeal filing is described in your homeowner's insurance policy form. Add all the evidence and documents with your appeal because organised and authentic information helps you get quick compensation for your loss.

The Cost Of Homeowners Insurance

The homeowner's insurance cost isn't the same for every home as it varies based on several factors. Let's look at the considerations that impact the homeowner's insurance cost.

Your home location

Your home location plays a massive role in the average cost of your home insurance. People residing in Queensland or New South Wales generally pay double the insurance fee of those living in Sydney. This is because the former states are more prone to natural disasters.

Insurance companies have to spend thousands of dollars for the damages when a flood or heavy rainfall strikes Queensland or New South Wales. In addition, other things like your state's zip code also affect your insurance costs. Moreover, your price will be lower if you live in a highly-equipped secure area compared to someone who lives in a high-crime area.

Home size and rebuilding cost

If your home is large and filled with expensive items, your insurance cost will also be more than average. That's because the repair and maintenance of such homes is a costly process. In addition, the style, material, and rates of construction contractors in your area also affect the insurance cost.

Higher coverage, higher cost

Besides the size and material of the house, the insurance cost also varies with the breadth of coverage. The more insurance coverages your home will have, the more you will pay. Here are the most common insurance coverages:

• Personal belongings that include clothes, furniture, and other appliances.
• Any injuries that happen in your home due to poor construction material.
• Additional living costs of living somewhere else while your home is being renovated.

Insurance policies don't pay the whole amount as they also have limitations. For example, some insurance companies only have liability up to $100,000. However, you can apply for premium packages if you want total compensation. But remember, these packages also add to the insurance cost.

House safety and security

Do you know that installing a high-quality security system in your home gives you a discount on your premium offers? You get a discount if you add a security system that alerts the authorities every time someone tries to break in.

Simply adding good and strong window and door locks also gets you a discount, although there are no specific details about how much value you will get. It also depends on your insurer as not all insurers offer the same discounts.

Higher deductibles, low premium prices

Sometimes you can choose between low or high deductibles in your insurance policy. This is the amount that you pay with an insurance claim. For example, if the plumbing repair cost is $20,000, you will pay $500 to the insurer, and the company pays the rest. However, if you pay higher deductibles, the insurance company trusts you and reduces your yearly premium costs.

Multiple kinds of insurance

If you apply for a bundle of insurance from the same company, your yearly insurance cost decreases. According to a survey, many people enjoy a 30% discount on their annual home insurance cost when they buy auto insurance from the same company.

How To Prevent Home Plumbing Issues

Although a homeowners insurance policy covers most accidental plumbing issues in your home, you should adopt proper maintenance tips to avoid them. Here are a few pre-emptive tips to help you in preventing plumbing issues:

Don't flush water-friendly wipes

Flushable or water-friendly wipes are great, but they can cause significant problems. These wipes may break down in the water and dissolve, but it takes a lot of time for one wipe to vanish in the water completely. And if multiple wipes get accumulated, they can clog your water pipes and septic tank.

A clog in the septic tank causes trouble in water flow and promotes the growth of toxic bacteria. Sometimes, unclogging isn't helpful, and you will have to replace the septic tank. That's why it is recommended not to flush anything in your toilet except water and human waste.

Don't pour grease

Never allow grease to make its way through your pipes. It may seem that the grease will wash away, but that's not true. As grease is sticky, it will stick to your pipes, catching other food particles.

Over time it will constrict your pipes, making it very hard for water to flow. This, at some point, can cause your lines to burst and flood your home. To avoid such a situation, collect grease in a separate container and dispose of it in the bin instead or simply install a grease trap.

Fix minor issues quickly

If you want to save yourself from substantial plumbing bills, try fixing minor issues as quickly as possible because minor problems can become huge issues within seconds. For instance, a neglected water leak can result in mould formation, costing thousands of dollars for proper removal.

Replace rubber hoses with stainless steel

Does your washing machine have rubber hoses? If yes, then your home is always at risk of internal flooding. A burst washing machine pipe causes huge water loss, almost five gallons (22.7 Litres) per minute. You can prevent this from occurring by replacing the rubber hoses with stainless steel. As steel is resistant to damage, your home plumbing system will also stay safe.

Making A Claim For Plumbing Issues

The homeowner's insurance coverage helps pay for replacing or repairing a property that got damaged accidentally. From compensating for water leaks to paying for additional expenses, most plumbing issues fall into this insurance. So if you have damages to your home that require plumbing, be sure to reach out to your insurance provider to make a claim and get the issues fixed by an expert plumber as soon as possible.