Hey everyone – Tony Smith here again with Chrinco.com and today we’re talking about claims from water damage.
Did you know that many insurance companies have verbiage in the policy that will cap payouts from water damage at $10,000 on older homes? In this situation, we’re not talking about water back up but rather damage caused by pipes breaking or leaking, appliances leaking, roofs leaking, etc. You see insurance companies know that as a home ages, the potential for claims from water damage increases. This could be from the degradation of plumbing material over time or even aging roofing materials or even aging appliances. However, in an effort to mitigate these types losses to keep insurance rates low across the board. Insurance companies will typically cap such losses at $10,000 once a home reaches a certain age – commonly 40 years old.
So what are you to do if you own an older home? Simply put, you ask for an exception. The first thing you need to know when asking for an exception is that insurance companies like new things. Specifically, they like to see newer appliances and fixtures, newer AC’s and Water Heaters. But that’s not all, they typically will rely on the opinion of a third party when deciding whether to grant an exception. In this case, they generally want you to provide a plumbing inspection or some type of certification from a licensed plumber verifying the plumbing systems are functioning properly and that there are no visible signs of leaks or damage. Now before you spend the money on the inspection or certification, you’ll want to check with your insurance company first for two reasons. The first is that not all insurance companies offer exceptions. The second is that the companies that do offer exceptions generally have specific guidelines that need to be followed if they are going to consider an exception.