$22K Loss Highlights Water Main Break Insurance Gap 

A homeowner from Oklahoma City recently faced a shocking $22,000 out-of-pocket cost after a water main break flooded her basement. This tragic loss also led to damage to her appliances and HVAC systems. Unfortunately, this insurance gap meant that neither her Homeowners Insurance nor the city would cover the loss.  

Understanding the Water Main Break Insurance Gap 

While many remain unaware, many standard homeowners’ insurance policies do not cover water damage caused by sources outside the home, such as city water mains, sewer backups, or sump pump failures. Furthermore, water damage losses can cost up to tens of thousands of dollars, leaving homeowners helpless. However, optional coverages can help fill this gap and protect homeowners from unexpected losses.  

Common Water Damage Claims and Rising Costs 

According to the data from the Insurance Information Institute, water damage and freezing accounted for over 27% of all U.S. Homeowners’ Insurance claims in 2022. With the average cost per claim being nearly $14,000, homeowners with such an insurance gap could face financial hardship very quickly. 

A standard Homeowners Insurance policy typically does cover internal plumbing failures; however, external sources are excluded. This makes it critical to discuss any additional endorsements like Water Backup, Service Line, and Equipment Breakdown Coverage with an insurance professional.  

How to Fill the Gaps 

The first step to being safe against heavy losses is to understand potential gaps in your coverage. Homeowners are advised to:  

• Add a Water Backup Endorsement to cover sewer or sump pump failures. 
• Consider Service Line Coverage for water main and utility line failures. 
• Install water leak detection devices to automatically shut off water and alert homeowners of leaks. 
• Regularly inspect plumbing, appliances, and caulking, and monitor water bills for hidden leaks. 

The support of a reliable insurance agent is crucial for homeowners to help avoid costly losses from any insurance gaps. When purchasing policies independently online, you put yourself at risk of getting into trouble due to the lack of expert guidance.  

Protect Yourself Better Against Water Damage Losses 

Water main break losses are likely to escalate quickly, with costs rising up to tens of thousands in repairs and also impacting home value. Homeowners are advised to regularly review policies, add any appropriate endorsements, and maintain plumbing systems to minimize risks. Being proactive can save you from shocking insurance gaps from turning into a $22K nightmare.  

You deserve to live feeling safe and secure. Contact one of our professionals today to avoid the pitfalls of insurance gaps.