Insurance Deductible Water Damage
However in many instances this is capped at anywhere from 25 000 to 100 000 which may not be enough to keep up with the increasing strata corporation deductibles.
Insurance deductible water damage. Washing machine related water damage is one of the 10 most common forms of water damage according to a study from the insurance institute for business home safety. If a water leak causes damage to common areas of the condo building the building s own insurance may need to step in to help cover the damages. Insurance deductibles are handled differently from association to association and with an increasing number of policies having different deductibles depending on the peril it is important to establish a policy for handling the deductible prior to a claim occurring. The insurance company subtracts the deductible from 3000 and pays the rest.
These large water leaks can cause tens of thousands worth of damages and insurance claims. Fema will then pay 2000 the amount of the fema estimate not covered by insurance. If the water damage emanates from within an individual unit in the building and not from the common property unit owners can be held responsible to pay these high deductibles. 6 water damage and gradual damage in your home.
In more than 50 percent of cases the damage results from a leak in the supply hose which connects the appliance to your home s water supply. Your condo building s insurance coverage and deductible. An example of gradual damage is when something happens slowly like paint chipping off a wall it starts with a small chip then eventually half the wall is uncovered. Often insurance carriers will review losses and if there are excessive numbers or even just one really large loss due to water damage create a separate deductible for water damage.
Wind and hail damage is number one at an average claim cost of 8 041 the iii reports. Gradual damage due to water damage is a common problem when it comes to insurance claims. Coupled with increasing water damage claims and repair costs insurers are increasing water damage and sewer backup deductibles on the strata corporation s insurance. However in many instances this is capped at 25 000 to 50 000 which may not be enough to keep up with the increasing strata corporation deductibles.
Deductibles generally apply to property damage not to the liability portion of homeowners or auto insurance policies. To use a a homeowners policy example a deductible would apply to property damaged in a rogue outdoor grill fire but there would be no deductible against the liability portion of the policy if a burned guest made a medical claim or sued. Then the insurance adjustor estimates that the damage covered by the homeowner policy will be only 3000. Water damage and freezing is the second most common home insurance claim.
As far as fema is concerned the insurance coverage was 3000. From 2010 2014 the average cost of a homeowners claim for water damage and freezing was 7 958 according to the iii. As a unit owner you can be held responsible to pay these high deductibles. The strata corporation would have to pay it s own deductible.
Most homeowners insurance policies help cover water damage if the cause is sudden and accidental. According to the insurance information institute homeowners insurance may help pay for repairs if for instance your drywall is drenched after your water heater ruptures or an upstairs pipe bursts and water saturates the ceiling below.
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