Is Water Damage Covered or not?
Water falling from the sky is rain. Water rising from the river is flood and NOT COVERED. Water bursting from a pipe is COVERED!
If you have ever read an insurance policy it’s easy to want to make the pain stop.
However, if you have a claim, it is important to know if you have coverage, or not.
On Joe Fairless Best Ever Show Podcast #746 I was the guest and we discussed damage caused by water.
The standard property policy EXCLUDES Water:
Flood, surface water, waves, tides, tidal water or spray from any of these
Mudslide or mudflow
Water that backs up or overflows or is otherwise discharged from a sewer, drain , sump, sump pump or related equipment
Water under the ground surface pressing on or flowing or seeping through:
Doors or windows
Unless through one of these the result is a fire, explosion or sprinkler leakage.
We also talk about the EXCLUSION of Underground pipes or drains.
Backup of Sewer or Drain.
There are many companies that will give back coverage for:
Backup of Sewer or Drain for limits from $5,000 to $100,000
Flood is its own policy.
If you are concerned about Flood or your property is in a flood plain, you will need a Flood Policy. The flood maps are currently being redrawn, and many properties that were previously thought to be not in a flood plain have found they need flood insurance.
If this describes your situation, you have a couple of options:
Purchase Flood Insurance
Get an elevation certificate that determines you are above the floodplain.
Get a letter of Map Amendment
Checkout CREPN #35 with Steve Gill, owner of Flood Risk America
For more information about Commercial Real Estate Insurance like this, get your Commercial Real Estate Insurance Buyers Guide