Carriers are now adding a special endorsement on most Replacement Cost Value policies that limit water damage, of any kind, to $10,000.00. This means if you have a broken pipe, toilet backup, or water system failure (e.g., broken water tank, damaged cast iron pipes, AC leak) in your home or property and it floods, despite the water damage, the insurance company will only pay you $10,000.00 for these types of insurance claims. In addition, they will still apply your deductible, which is often $2,500.00.
In our experience, water damage is the most common type of loss for any insured. Moreover, the insurance company also requires you to mitigate your damages. This means, if you have water damage, you may also need to hire a mitigation company to remove the excess water and dry out your property to prevent the property from sustaining additional damage such as mold or mildew. These mitigation companies are not cheap and their bill digs into the $10,000.00 cap set on your insurance claim.
Insureds must request a special rider that amends the policy in place and modifies the terms and conditions of the original policy/contract. The rider/endorsement needed overrides the $10,000.00 cap on water losses and increases the premium. The premium increase may be nominal considering water damage could cause tens of thousands of dollars in damage and happen more often than we like.
Contact our office directly for a free evaluation on any water damage, roof leak or roof damage, hurricane damage, and/or fire losses. We have a group of private adjusters, claims consultants, and top-rated attorneys on standby to assist you.