My Basement Flooded! Will my insurance company cover it? Do I need a Public Adjuster?

Am I covered by homeowners insurance for water in my basement? This is a very common question we get from our customers. Nearly every home gets at least a small amount of water in the basement. Unfortunately, most water that leaks into the basement is not easily covered - especially if you use the exact phrase “flooded basement.” We compiled a list of the different causes of basement water with an explanation of why they are covered or not covered.

Plumbing Leak

If you have a sudden leak from plumbing in your basement, you are likely covered for it by homeowners insurance. You should get coverage for leaks from the following sources: leak from a pipe under the first floor floorboards; leak from a sink, tub, shower or toilet; leak from an appliance; leak from an air conditioner.

Sump Pump Failure

Sump pump failure can be catastrophic. Imagine walking down the stairs into your basement during a rainstorm and seeing your furniture and belongings sitting in six inches of water… just the thought probably turns your stomach. Now, imagine calling your insurance company up and getting denied for a claim. The fact is, this scenario happens over and over again to homeowner throughout Pennsylvania. If you do not have a Sump Pump Endorsement on your homeowners insurance policy, your insurance company will deny your claim. You need this endorsement (endorsement = rider) on your policy to get coverage for a sump pump failure.

Ground Water/Seepage

Your insurance company will not cover water seeping into your basement from below the ground or running along the ground into your basement. If you have water getting into a basement window, the source of that water will determine coverage. Any claim for water getting into the basement from outdoors is best handled by a Public Adjuster because they are very easy for the insurance company to deny.

Sewage

Many policies require an endorsement before they will provide coverage for a sewage backup. A sewage line that breaks outside of your home and leaks into your walls is likely not covered. However, if sewage is being discharged through your toilet, a Public Adjuster may be able to negotiate coverage. Once again, these claims are very easy for the insurance company to deny, and it is important that you have an expert handle all of the negotiation for all claims involving water in the basement.

Water Heater

Water heater leaks can cause severe damage to a basement. Damage from a water heater is covered, however the insurance company often tries to argue that this type of loss is a maintenance issue. Having a Public Adjuster negotiate your claim is a must for water heater leaks.

Mold

Mold can be very difficult to get covered on any floor, but if you have mold in your basement you need a Public Adjuster to assist with getting coverage and getting the maximum mold settlement. In order to get coverage for mold, the homeowner must prove that it was caused by a covered loss.