water-damage coverage and claims · follow these tips to prevent more damage after a water leak or...

Updated April 2019

Learn about insurance. 800-252-3439 | tdi.texas.gov

Water-Damage Coverage and

Claims

Table of contents

1 Types of water-damage coverage Flood insurance

2 Coverage for other kinds of water damage Coverage for mold

If you have a water leak or flooding

5 Claims Deductibles and dollar limits

Water-damage claims

Mold removal claims

8 Preventingwaterdamage

Water damage to your home can be expensive and

time-consuming to repair. Homeowners insurance

doesn’t cover damage caused by floods and might not

cover other water damage.

Types of water-damage coverage

Flood insuranceFlood insurance pays to repair your home if it’s

damaged by rising water. It’s a separate policy from

your homeowners insurance.

Is flood insurance required?

If you live in an area with a high risk of floods, your

lender will require you to have flood insurance. And

if you’ve gotten a federal disaster grant in the past,

federal law requires you to have flood insurance.

But flood insurance is a good idea, even if you’re not

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Get help from TDIFor insurance questions or for help with an

insurance-related complaint, call our Help Line at

800-252-3439 or visit our website at tdi.texas.gov.

Visit HelpInsure.com to shop for automobile,

homeowners, condo, and renters insurance, and

TexasHealthOptions.com to learn more about

health insurance.

required to have it. Flooding is a major cause of home

damage, and about one in five floods happens outside

high-risk areas. If you don’t have flood insurance and

your home is damaged by flooding, you might have to

pay the cost of repairs yourself.

How do I get flood insurance?

You can buy flood insurance from the National Flood

Insurance Program. To buy flood insurance, talk to

your homeowners agent. Visit FloodSmart.gov for

more information and to learn whether you live in a

high-risk area.

Coverage for other kinds of water damage Most homeowners policies cover sudden and

accidental water damage. This is damage caused

by things like a burst pipe, tub or toilet overflow, or

a broken appliance hose. Most policies also cover

damage if rain gets into your house through a storm-

damaged roof or window.

Coverage varies by policy, so read your policy or talk

to your agent to know what’s covered. If your policy

doesn’t cover water damage, you might be able to add

the coverage to your policy.

What will my policy pay for?

If your policy covers water damage, it will pay to

repair or replace your home and the things you own,

like your clothes and furniture. It might also pay your

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additional living expenses if you have to move while your

home is repaired. Additional living expenses include rent,

food, and other costs you wouldn’t have if you were still in

your home.

To be fully protected, make sure your policy has

replacement cost coverage.

Homeowners policies provide either replacement cost

coverage or actual cash value coverage.

• Replacement cost coverage pays to repair your home

or replace your property at current costs. For instance,

say you bought a couch 10 years ago and paid $1,000

for it. If it’s destroyed, a replacement cost policy will

pay you enough to buy a new couch like your old one,

even if the cost is more than what you originally paid.

• Actual cash value coverage pays the replacement

cost minus depreciation. Depreciation is a decrease in

value because of wear and tear or age. For example,

if your 10-year-old couch is destroyed, an actual cash

value policy will pay you the value of a 10-year-old,

used couch. It won’t pay to replace it with a new

couch like the one you had.

What’s not covered?

Homeowners policies usually won’t cover damage from

gradual leaks. This includes damage that happens over time

from things like slow-leaking pipes, seepage from cracks in

the foundation or roof, or leaky appliances. Homeowners


policies also won’t cover water damage caused by

water seeping into your home because of rain, storm

runoff, or over-saturated ground.

Your policy usually won’t pay to replace the cause

of the water damage. For instance, if your hot water

heater breaks and damages your floor, your policy

will pay to fix the floor, but it won’t pay for a new hot

water heater.

Coverage for moldMost homeowners policies will pay to remove mold

only if it’s required to repair your damaged property.

They won’t pay for other mold removal, however.

Read your policy to learn whether it covers mold

removal. If it doesn’t, you might be able to add mold

removal coverage for an extra cost.

Visit the Office of Public Insurance Counsel website at

opic.texas.gov to learn about mold coverage for most

policies sold in Texas.

If you have a water leak or flooding

Follow these tips to prevent more damage after a water

leak or flood:

• Stop the water flow or leak as soon as you can.

Know how to turn the water off at the main

valve or at the valves under your sinks and near

appliances.

• Remove pools of water and start drying


the area to prevent more damage and mold

growth. Dry the area as soon as you can. Mold

can start growing within a day after a leak.

• Move wet items to a dry room or an area with

fresh air. If you move items outside, put them

somewhere secure to protect them from theft.

• Pull up wet carpets and rugs.

• If you can’t remove the water and dry the area

yourself, use a service. Search the internet or

check a phone book for businesses that specialize

in cleaning up after water damage. Your agent

also can help you find a service.

Claims

Deductibles and dollar limitsIf you have a claim, you must meet a deductible.

A deductible is the amount of a claim that you must

pay yourself. For instance, if you have a $1,000 claim

and your policy has a $300 deductible, the insurance

company will deduct $300 from your claim amount

and pay you $700. You have different deductibles for

each type of coverage.

Policies pay only up to their dollar limits.

Each type of coverage has a dollar limit. Make sure

you have enough coverage to replace your home and


property if you have a total loss. If you don’t have

enough coverage, you’ll have to pay the difference

yourself.

The first page of your policy is the

declarations page. It has a summary of your

policy, including your coverages, dollar limits,

and deductibles.

Water-damage claimsFollow these tips if you have a claim:

• Tell your company as soon as possible. Most

companies have deadlines for you to file a claim.

You usually must report water damage that was

hidden from view within days after you first see

it. Call your agent or your company’s claims

number to start your claim. The claims number

should be in your policy.

• Make a list of your damaged property. If

possible, take pictures or videos of the damage

before making any repairs. Don’t throw away

any damaged items until your adjuster has seen

them.

• Make only temporary repairs to protect your

house and belongings. For instance, put a

tarp on your roof or cover a broken window.

Don’t make permanent repairs. The insurance

company might deny your claim if you make

permanent repairs before it sees the damage.


!

• Keep receipts. To get full payment, you must

prove to the insurance company that you

replaced destroyed items. Receipts will help you

do this. Also keep receipts for any materials you

bought to make repairs.

• Try to be there when the insurance company’s

adjuster looks at your damage. If your home

is damaged, have your contractor with you.

Your contractor can talk to the adjuster about

estimates and other issues.

• If the damage was caused by an appliance leak,

have an inspector certify that the damage and

appliance were fixed. The inspector will give

you a certificate verifying the repairs. If you

don’t get the certificate, the company might

charge you more or refuse to renew your policy.

For more information, talk to your adjuster or

call our Help Line. For a copy of the certificate,

visit our website.

Mold removal claimsIf your policy covers mold removal, there are some

things you should know if you have a claim:

• Mold remediators must have a state license. A

mold remediator is someone who removes mold

from homes professionally. To learn whether a

company or person has a license, call the Texas

Department of Licensing and Regulation at 800-


803-9202 or visit tdlr.texas.gov.

• You don’t need a license if you remove the mold

yourself.

• The insurance company will ask you to prove

that the mold was removed and that you fixed

the problem that caused it. You’ll probably

have get an inspection and air-quality tests. The

company might charge you more or refuse to

renew your policy if you don’t do this.

• If you hire a mold remediator, the remediator

must give you a certificate verifying that the

mold was removed within 10 days of finishing

the work. If you sell your house, you must give

the certificate to the next owner. For a copy of

the certificate, visit our website.

For more information about the claims process, read

our Homeowners Insurance publication on our website.

Preventing water damageThere are things you can do to help avoid water

damage. Check your home regularly for signs of

moisture. After it rains, check for water stains or

odors inside your house. Pay special attention to these

common sources of leaks:

• Hot water heater. Check your water heater for

rust and cracks every year. Consider having

your water heater flushed every year to remove


sediment.

• Air conditioner. Make sure your air

conditioner’s drain line isn’t clogged. Also check

for standing water in the drip pan. Have your

air conditioner serviced regularly to prevent

potential leaks and other problems.

• Appliance hoses. Check hoses on washing

machines, icemakers, and dishwashers for kinks,

cracks, or bulges. Replace washing machine

hoses at least every five years. If you have rubber

or plastic hoses, switch to stronger metal hoses.

• Showers, tubs, sinks, toilets, windows, and

doors. Check the caulk around tubs, sinks,

toilets, tubs, shower stalls, windows, and doors.

Replace damaged caulk or grout to prevent

leaks.

• Pipes and faucets. Routinely check pipes under

sinks for leaks and signs of wear. In winter,

protect outdoor faucets to keep pipes from

freezing. Keep your home heated, even if you’re

away, and especially if you’ll be away for a long

time. During freezes, open the cabinets under

sinks to let warm air flow around pipes.

• Roof. Keep your roof clear of leaves and debris.

Trim your trees to remove any limbs hanging

over your house. Overhanging limbs could fall in

a storm and damage the roof. Replace missing or


damaged shingles. Seal cracks around chimneys,

skylights, and vents.

• Rain gutters and downspouts. Remove

leaves and debris from your gutters. Make

sure downspouts carry water away from your

foundation.


The information in this publication is current as of the revision date. Changes in laws and agency administrative rules made after the revision date may affect the content. View current information on our website. TDI distributes this publication for educational purposes only. This publication is not an endorsement by TDI of any service, product, or company.

Texas Department of InsurancePO Box 149091 | Austin TX 78714-9091

800-252-3439 |tdi.texas.gov

Water-Damage Coverage and Claims (cb074)Updated April 2019

water-damage coverage and claims · follow these tips to prevent more damage after a water leak or...

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