Does Insurance Cover Basement Seepage, Leaks, and Flooding?

Does Insurance Cover Basement Seepage, Leaks, and Flooding?

Part of being a homeowner is dealing with the unexpected. Problems and damages can happen to your home, whether it’s convenient or not. In many situations, homeowners insurance can help ease the burden caused by these damages. But what exactly does insurance cover when it comes to basement leaks or flooding?

Homes all across New Jersey experience basement leaks. As New Jersey’s trusted basement waterproofing company, Blue Umbrella is here to help you understand insurance surrounding a leaking basement, what types of leaks are part of standard coverage, and how to prevent leaks from happening in the first place.

Are Basement Leaks Dangerous?

Are basement leaks really that big of a deal? Yes! What may seem like a little bit of water on the walls or a damp spot on the carpet can quickly lead to lasting property damages, expensive repairs, and even pose health concerns. You need to protect your home from basement water. But, the protection insurance offers comes down to the type of leak you are dealing with.

Internal vs External Basement Leaks

If your New Jersey home has a basement leak, your homeowner’s insurance company will accept or deny the claim, depending on whether the leak is internal or external. In most situations, an internal leak is covered by your existing insurance policy. An external leak, however, is either not typically covered or requires an additional insurance policy.

“Being a homeowner is full of unpredictability. Rather than waiting for an accident, leak, or flood to occur and dealing with insurance, there are steps you can take right now to safeguard your basement against leaks and water damage.”

-Steve Karlik, Owner & Founder of Blue Umbrella Waterproofing

When Does Homeowners Insurance Cover Basement Water Issues?

When the source of the leak is internal, from inside your home, it is common for homeowner insurance policies to cover basement water damages. The following are common types of internal leaks experienced by New Jersey homeowners:

Burst Pipes

If you see water in your basement, first check for plumbing issues. Broken, cracked, or burst pipes can sometimes be hard to spot but can cause severe damage if not found quickly. But the good news is that your homeowner’s insurance will likely cover any damage.

Piping Installation Mistakes

Similar to burst pipes, improperly installed pipes can cause leaks and drips into your basement. If your home is a new construction or recently underwent renovations, check the sealing and connections for your pipes. Your insurance may foot the bill for incorrect pipe installation.

Broken Appliances

Malfunctions with large appliances, like dishwashers, washing machines, or water heaters, are a common source of basement water. Sometimes, your insurance company may direct you to the appliance manufacturer to check if the item is under warranty as part of the discussion regarding your insurance claim.

Localized Overflow

Localized overflow occurs when water originates from a plumbing appliance inside a home, such as a sink, toilet, or bathtub, and overflows onto the floor, causing damage. Insurance will often cover this type of water overflow damage if it is sudden and incidental.

In all of these internal basement leaking situations, insurance companies will try to determine whether the leak was caused by malfunction or negligence on the homeowner’s part. If the cause of the damage is determined to be homeowner negligence, your insurance company may deny your claim.

When Does Homeowners Insurance Not Cover Basement Water Issues?

Most homeowner insurance policies do not cover basement water issues caused by an external source. An external leak means any water that originates from outside of your home. Common externally sourced basement leaks not covered by insurance policies include the following.

• Natural Flooding
  Whether from heavy rainfall, excessive snowmelt, or flash storms after a dry spell, flooding can cause serious damage to your New Jersey property. Unfortunately, insurance companies frequently dismiss claims for damages caused by natural floods.
  
• Basement Seepage
  Water naturally exists in the soil surrounding your basement. This water exerts pressure on your foundation walls, called hydrostatic pressure. Hydrostatic pressure can cause cracks and fissures in your basement walls, allowing the moisture in the earth to seep into your basement.
  
  Water and the accompanying pressure are more likely to build up after heavy rain or melting snow. Homes near the shoreline also have a higher water table, which can lead to more significant hydrostatic pressure. Leaks caused by groundwater are most often not covered by insurance.
  
• Sewer Backup
  Sewer backup refers to piping issues that originate outside of your home, including community piping, sewers, and drainage. Water damage caused by sewer backup is often dismissed, but insurance companies can offer additional coverage to help anticipate sewer backups.
  
• Sump Pump Backups
  You may have a sump pump installed in your basement. Unlike other appliances, a sump pump failure resulting in basement flooding is unlikely to be covered by your insurance.

What Coverage Types Will Cover Basement Flooding?

For standard homeowner insurance policies, the basement flooding coverage is the same. If you qualify, some insurance providers will offer you additional policies to add to your standard package to help deal with some of the typically uncovered sources of water damage discussed above. Speak with your insurance provider to see what optional water damage policies they offer and what suits your New Jersey home.

Flood Insurance

Flood insurance covers losses and damages caused directly by flooding. Insurance agencies define a flood as excess water covering or traveling through a large, usually dry area.

Water Backup Coverage

Water backup coverage addresses damage caused by a sewer, drain, or sump pump backing up water into your home. This coverage is especially beneficial if your home is aging, you live in an older community, or there are lots of trees that can interrupt sewage lines.

Service Line Coverage

Service line coverage protects against damages caused to any service lines (water, power, cable, etc.) that occur underground on your property. In some cases, it also protects against damages caused by the main sewer line.

Equipment Breakdown Coverage

This additional coverage helps cover the cost of repairing or replacing damaged equipment. This coverage can include damaged water pumps and other mechanical equipment related to protecting your basement from moisture.

Preventing Basement Water

Being a homeowner is full of unpredictability. Rather than waiting for an accident, leak, or flood to occur and dealing with insurance, there are steps you can take right now to safeguard your basement against leaks and water damage.

Proper Yard Grading

While external leak sources may seem uncontrollable, properly grading your lawn will allow water to flow naturally away from your foundation, relieving hydrostatic pressure and decreasing the risk of leaks.

Gutters & Downspouts

Making sure your home’s gutters and downspouts are correctly installed, cleared, and pointed away from your property can decrease the risk of externally caused leaks in your basement.

Basement Waterproofing

Basement waterproofing keeps external sources of water and moisture out of your basement, preventing water damage. Blue Umbrella offers free inspections for New Jersey homeowners.

We thoroughly assess the risk of external water intrusion your home faces and explain how interior basement waterproofing, a sump pump, and a professional-grade dehumidifier can make basement leaks a thing of the past.

Sump Pumps Can Lower Your Insurance Costs

In addition to protecting your home, having a sump pump installed in your New Jersey home may provide you with an insurance discount, as it reduces the risk of water damage.

Blue Umbrella Can Keep Your Basement Leak-Free

While your home insurance usually covers damage caused by different types of internally sourced leaks, insurance often does not cover water damage caused by external sources.

That is where Blue Umbrella’s interior waterproofing system comes in. We can protect your New Jersey home from even the smallest drop of outside water in your basement. And our waterproofing system comes with a lifetime warranty.

We are New Jersey’s trusted waterproofing contractor with thousands of satisfied customers. So call us today to schedule a free basement inspection. Let us protect your home.