Don’t Wait Till You’re Up To Your Knees in Water – Find Out Now What Your Insurance Covers

Don’t Wait Till You’re Up To Your Knees in Water – Find Out Now What Your Insurance Covers

Do you sleep soundly at night knowing you have a comprehensive homeowners insurance plan that will cover any type of disaster that could happen in your basement?

Don’t get too comfortable under those covers; some of the common basement accidents such as flooding and earthquakes aren’t actually covered in your home insurance policy. When these events occur in your home, and especially in your basement, they are already incredibly stressful. Don’t add to the disaster by being surprised that your insurance will not cover the damage. Prepare yourself by knowing some of the common occurrences that may not be covered in your current policy.

Loopholes in Coverage

What you may not know is that your homeowner’s policy can come with many restrictions and limitations. Review the list below for some insight on common issues that don’t have the coverage you may think.

  • Structural Repairs, No Possession Replacement – Make sure to review the restriction section carefully because it may cover floors and wall repair after a sump pump malfunction in your basement, but any furniture or electronics damaged will not be covered.
  • Replacement Cost Minus Depreciation – If you do get reimbursement for your belongings damaged by water, you may not be getting much. Often policies will only repair your home to the state it was previously and only pay cash value replacement of belongings if they have value. Older appliances or furniture may garner little, if any reimbursement.
  • Broken Pipes and Hard Rain Not Covered – Even worse, some policies won’t cover water damage from busted pipes, hard rain, or even hurricanes. Just last year heavy rains caused flooding in parts of Vermont and New Hampshire and on average, only 13% of homeowners have a flood insurance policy. Also, complications and damage caused by frozen pipes are considered homeowner negligence and you may be liable for all repair costs.
  • Mold Not Covered – Important for homeowners in humid areas, mold can be a serious health risk and your basement is the perfect breeding ground. Some policies have a cap on how much mold mitigation it will cover and others exclude the coverage all together.
  • Building Code Requirements – Older homes are often faced with new laws about building codes that will require repairs and updates to your home. These costs are not usually covered by your policy unless you opted for additional “ordinance or law” coverage.
  • Double Deductibles – Just because you insure your car and house under the same insurance company, does not mean you get to pay one deductible even if they are damaged by the same occurrence such as a flood or tornado.
  • Fire Damage Cost to Rebuild – If you lose your whole house and all of its belongings in a fire, most policies do not cover the full cost to rebuild your home and replace your possessions. Considering depreciation of your home and belongings could leave a large gap in the cost to replace your property.


Don’t get caught in an insurance disaster after already suffering a horrible natural disaster–consult with an insurance agent to understand these coverage gaps. Contact Taylor-Moore Agency today to make sure you and your home are covered in any event.

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