WATER DAMAGE ~ Am I Covered?
Understanding which losses are covered and which are not will help you take the necessary precautions to avoid uninsured water losses. The damage from water can be devastating, expensive and always unexpected!The typical Homeowners policy (HO-3, Special Form) covers all risks of direct physical loss to your home including water damage but with significant exclusions and limitations. Generally speaking, your Homeowners policy will pay for sudden and accidental water damage from inside water sources but does not pay for losses caused by water that finds its way into your home from the outside. Where the water originated ultimately determines whether a loss may be covered or not.
Click the following questions for explanations of the major water exclusions in a Homeowners policy.
Water Damage ~ is flood excluded in a Homeowners policy?Water Damage ~ if water backs-up through my sewer or drain am I covered?Water Damage ~ if waters leaks through my foundation am I covered?
Answers to other common water claims.Water Damage ~ if my roof leaks is the water damage covered?
So, unless excluded or otherwise limited, water damage is a covered loss when caused after an inside water pipe leaks or breaks (like behind a wall or under a sink); or leaks from appliances (like hot water tanks, washing machines, or dishwashers). Your property deductible is deducted from the covered loss.
LOSS SETTLEMENT: It is important to note that it is the “damage” to your home from the water loss that is covered; NOT the repair to the actual item that failed. Your Homeowners policy pays for the necessary costs to access (eg. cut open an undamaged wall to access a broken pipe and then pay to repair the wall) and repair the damage caused by the water. But, the broken pipe itself, which failed because of wear and tear, decay, defective materials or methods of construction is not part of the covered loss. The cost to repair the pipe or appliance is your responsibility.
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LEX 18
Investigates: Utility Company Insurer Won't Pay For Damage Related To Broken
Water Line
At 5 p.m. Sunday, Tom Shannon says his family's
cars were in good condition.
Two hours later, they were covered in dents, dings and paint scratches, the Lexington man says, due to a water main break that sent water, mud and rocks soaring into his driveway.
The worst part, he said, is that Kentucky American Water's insurance company has refused to pay to have the damage repaired. A water company spokesman confirmed the insurance claim was denied, even though the break occurred on a part of the line maintained by Kentucky American.
“In my mind, there's no question this is damage from their water main,” Shannon said.
LEX 18 Investigates obtained exclusive video of the geyser on Cranbrook Court, which was the result of a spontaneous rupture that cut water service to about 27 houses.
Kentucky American Water spokesman Charlie Boland declined to speak on camera. He said over the phone he could not discuss specific details of water customers' insurance claims.
However, he gave some information about the water line break, which he said had no apparent cause. There was no construction going on, no apparent serious rust, and no drastic drop in temperature, all of which could contribute to a line breaking.
“It's something we always look at, but there's not always an obvious reason,” he said.
Boland said the line was an 8-inch, ductile iron pipe that had been installed in 1995, which is fairly new for water infrastructure.
“We had no history of breaks on this section of main,” he said.
Reports of the break initially came in about 6:30 p.m. Sunday. Crews were on scene at 7 p.m., and water was back on for all customers four hours later.
However, Shannon said the water had been running for some time before the water company could be reached. Several neighbors called police after they were unable to reach anyone at Kentucky American Water. The cops got in touch with the water company, he said.
In the 30 minutes to an hour it took crews to respond, debris and water rained down on Shannon's family's cars, he said.
He walked LEX 18 Investigative Reporter Richard Essex through the damage. His truck and his daughter's car both had numerous dings and scratches – some down to bare metal – that were the result of being pelted with rocks, he said.
His daughter's boyfriend's car took the brunt of it, he said. He showed LEX 18 Investigates a passenger side mirror that had been knocked off, and the engine bay had been filled with gravel.
When the break occurred, he told his family to move their cars, but before they could get to them, they heard what sounded like “popcorn,” he said – the sound of rocks landing.
“I said ‘let's just leave it because somebody's going to get hurt if they go out there,” he said.
The next day, an insurance agent called him and confirmed they would not be paying any damages.
“She proceeded to tell me ‘You know, that's not a really old water line. We wouldn't know that would happen and that it would break,'” he said. “And I said ‘Hang on. Are you getting ready to tell me you're not going to be covering any of this?”
This is not the first time Kentucky American Water has denied insurance claims resulting from broken water lines. LEX 18 and other media outlets have covered similar stories in the past, typically for damages to houses.
There also has been some confusion because, according to the Kentucky Public Service Commission, water lines leading from a customer's water meter to their home are the homeowner's responsibility to maintain and repair. Some homeowners don't know that.
Shannon, a former plumber, said he used a tool access the meter and shut off water to a neighbor's house nearest to the geyser, which didn't stem the flow of the water and showed the break was on the water company's side.
“No one is trying to get ahead on this, but I sure would like to have my vehicles back to the condition they were in at 5 o'clock Sunday,” he said.
Boland said Kentucky American Water would continue discussions with customers.
Two hours later, they were covered in dents, dings and paint scratches, the Lexington man says, due to a water main break that sent water, mud and rocks soaring into his driveway.
The worst part, he said, is that Kentucky American Water's insurance company has refused to pay to have the damage repaired. A water company spokesman confirmed the insurance claim was denied, even though the break occurred on a part of the line maintained by Kentucky American.
“In my mind, there's no question this is damage from their water main,” Shannon said.
LEX 18 Investigates obtained exclusive video of the geyser on Cranbrook Court, which was the result of a spontaneous rupture that cut water service to about 27 houses.
Kentucky American Water spokesman Charlie Boland declined to speak on camera. He said over the phone he could not discuss specific details of water customers' insurance claims.
However, he gave some information about the water line break, which he said had no apparent cause. There was no construction going on, no apparent serious rust, and no drastic drop in temperature, all of which could contribute to a line breaking.
“It's something we always look at, but there's not always an obvious reason,” he said.
Boland said the line was an 8-inch, ductile iron pipe that had been installed in 1995, which is fairly new for water infrastructure.
“We had no history of breaks on this section of main,” he said.
Reports of the break initially came in about 6:30 p.m. Sunday. Crews were on scene at 7 p.m., and water was back on for all customers four hours later.
However, Shannon said the water had been running for some time before the water company could be reached. Several neighbors called police after they were unable to reach anyone at Kentucky American Water. The cops got in touch with the water company, he said.
In the 30 minutes to an hour it took crews to respond, debris and water rained down on Shannon's family's cars, he said.
He walked LEX 18 Investigative Reporter Richard Essex through the damage. His truck and his daughter's car both had numerous dings and scratches – some down to bare metal – that were the result of being pelted with rocks, he said.
His daughter's boyfriend's car took the brunt of it, he said. He showed LEX 18 Investigates a passenger side mirror that had been knocked off, and the engine bay had been filled with gravel.
When the break occurred, he told his family to move their cars, but before they could get to them, they heard what sounded like “popcorn,” he said – the sound of rocks landing.
“I said ‘let's just leave it because somebody's going to get hurt if they go out there,” he said.
The next day, an insurance agent called him and confirmed they would not be paying any damages.
“She proceeded to tell me ‘You know, that's not a really old water line. We wouldn't know that would happen and that it would break,'” he said. “And I said ‘Hang on. Are you getting ready to tell me you're not going to be covering any of this?”
This is not the first time Kentucky American Water has denied insurance claims resulting from broken water lines. LEX 18 and other media outlets have covered similar stories in the past, typically for damages to houses.
There also has been some confusion because, according to the Kentucky Public Service Commission, water lines leading from a customer's water meter to their home are the homeowner's responsibility to maintain and repair. Some homeowners don't know that.
Shannon, a former plumber, said he used a tool access the meter and shut off water to a neighbor's house nearest to the geyser, which didn't stem the flow of the water and showed the break was on the water company's side.
“No one is trying to get ahead on this, but I sure would like to have my vehicles back to the condition they were in at 5 o'clock Sunday,” he said.
Boland said Kentucky American Water would continue discussions with customers.