Insurance for Water Damage in Chicago

9/12/2022 (Permalink)

Trust your insurance carrier and SERVPRO for water damage restoration in Chicago properties.

Different Policies Cover Many Aspects of Water Recovery Mitigation

Most homeowner’s insurance policies will cover particular kinds of water damage to the inside of your home. Several factors will determine precisely what it covers. The type and cost of the homeowner’s policy you carry will determine the deductible, plus any limits to payouts arising from particular claims.

Their different coverage restrictions and premium costs differentiate each type. There are certain kinds of water damage in Chicago that a homeowner’s insurance policy does not cover. Natural flood damage from a source outside has to be covered under a distinct policy for flood insurance. Homes in elevated areas or dry climates away from natural water sources might not need flood insurance policies. However, homes in low-lying areas along lakes, rivers, or oceans could need flood insurance.

Homeowners have three basic types of insurance policies: HO1, HO2, and HO3. HO1 policies need lower premium payments but carry deductibles on the high side and might not cover some kinds of damage to the homes covered by other policies. HO2 policies are intermediate, usually have moderate deductibles, and cover most damages. HO3 policies are the most expensive and generous insurance for homeowners. These policies give you limited deductibles and have a lot of perks that make them well worth their extra cost.

Variations in the Insurance Market

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

During a weather event, if your home sustains water damage, a homeowner’s comprehensive policy could cover your repair costs in particular circumstances. You will likely need to show your claims adjuster that the damage happened because of a defect in the construction of your home. This reasoning could 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 adequate explanation for water entering the home clearly through an open door or window.

A homeowner’s insurance policy will likely cover water damage associated with faulty appliances or plumbing. This outcome, of course, is not guaranteed, either. Before your provider agrees to pay your claim, you’ll have to state that the flood or leak was the cause of water-carrying equipment that was poorly manufactured or repair work on a shoddy existing water line.

At SERVPRO of Evergreen Park/South Chicago City, we can help you get what you deserve regarding your insurance claim after experiencing water damage. Just call us any time of day or night at (773) 337-3900.