NLIC.org

Josephine Said:

Does Geico Insurance Cover Basement Flooding?

We Answered:

I see your home policy through Geico as a bit of an issue to start. Geico only offers auto insurance in most states and contracts out the job of home insurance. They do this in an attempt to specialize on single line offerings without over extending themselves. The Geiko rep can usually connect you with a qualified partner, which are typically either Liberty Mutual or Travelers.

In order to find out if your policy will cover this damage, it depends on how the damage is characterized first. If the damage is said to be caused by a flood, then you will need your federal government flood policy to take care of the damages. Just because you are not in a flood zone, does not mean you cannot obtain a policy. Quite the contrary in fact. The federal government loves issuing flood policies to those people whol will likely never need to use them as it is pure revenue for the program.

If there was no technical flood in the area, you would need coverage through your policy for backup of sewer and drains. This is not something that is included on home policies in most states, but an optional coverage you would need to purchase as an add on to your existing policy. Without this coverage, there would be no pay out to you as the insured.

The final option is that you suffered water damages from seepage. If this is the case, you will likely not have any coverage regardless of the policy type. This is because in almost all states the foundation and its ability to protect/support your home is excluded from the policy.

I would double check the policy that you received in the mail to find out if you had these coverages, and if not, you'll be stuck. Even if you do have the coverages though, I would have to ask you if you know your deductible and are prepared to pay an increased premium from having filed a claim. If you have a $1,000 deductible, as is common in my area, you would receive only $500 with the appropriate coverages in place. Following the $500 payout, you could easily expect a 15% increase in your price for the next three years from the company. Depending on how much you pay now, you may end up paying back more than you got in the first place.

Tamara Said:

If you don't have renters insurance, does any of the homeowners insurance cover anything?

We Answered:

No, the homeowner isn't responsible for any of the items owned by the renter. Unless you specifically insured "property of tenant" on your fire policy, there is no coverage for her.

And regarding handling by court - you realize, that means she has to sue YOU, right? And just because she sues you, doesn't mean that your policy will pay out, even if she wins. There are exclusions - and one of the exclusions on the policy, is property to a tenant.

Dwayne Said:

Does Homeowner's Insurance cover wind driven rain damage?

We Answered:

Policies may cover wind driven rain, most (all?) do not unless there is damage to the house, too. But you have roof damage, so you will likely have coverage for at least part of your damage, though I can't say with any certainty. Unfortunately even if you do read your policy you're still not likely to know until your adjustor can assess your damage.

Try to be patient, as they adjustors are talking to those with the most serious damage first. That's why they have operators taking messages, so they can get those homes assessed!

That said, YES, you can - and are actually REQUIRED TO, prevent further damage as best you can. Be sure to take photos or video, and do not discard anything you remove until your adjustor tells you in writing that you can. Save any receipts and document, document, document.

You may not have to remove the carpet, but see if you can get some fans/dryers in there to dry it out. The sheetrock is likely a total loss, but I'd still try to have some contact with the adjustor before doing anything too major like removing the wood floors. Buy a tarp and place that on your roof, but be careful!

My heart goes out to all those affected by these nasty storms. Best of luck, and stay safe!

Shane Said:

Is sump pump failure and related damage covered by most homeowner’s insurance?

We Answered:

Dear Bummer Plumber,
Yes, most sump pumps are covered by most insurances IF it is a new constructed home or if your existing company covers flooding at all. Some do but some don't unless you pay extra for it. Especially in heavy rain or flooding areas. You really do need to contact the insurance company before repairing the pump and clearing ghe water however. They need photos and proof of actual cause of flooding before they will pay for anything. Best Wishes.

Rafael Said:

Should my homeowners insurance cover this?

We Answered:

No. They are not responsible.

The insurance company provided you with a home owner policy-- not a home warranty. When they inspected the home, they were making sure that it met their underwriting guidelines and qualified for coverage with their company. It is not their job to find improper building practices. This is what you hire a home inspector to do.

As a part of your purchase, you should have had the home inspected by a certified home inspector. However, even that will not catch everything -- it will catch a lot, but somethings (such as water problems) may not show up if it is not raining.

Your homeowners policy specifically excludes damage caused by manufacturer defect, construction defect. The adjuster was correct. This is not a covered loss.

After the adjuster inspected the loss -- the file was probably reviewed by the higher ups. The company took time to look into the problem and give the claim in depth consideration before they reached an opinion. So, would you rather they not have given your claim the consideration it deserved and just made a snap decision and denied you the day after they inspected it? Would that have made you feel better? Probably not.

If you know what company did the improper installation of the gutters - you may have recourse against them. However, you have no recourse against your home insurance based on the info you provided.

**EDIT - Rot is specifically excluded in homeowners policies. They will not cover this. It does not matter if you could not see it. It does not matter that you did not know about it. Rot (wet and dry) is specifically excluded. I have never heard of a homeowners policy that provided coverage for rot.

If the guttering was on wrong when you purchased the home 3 years earlier, it's a pretty safe bet that the rot was present well before you discovered that the gutters were improperly installed. You are going to have a very hard time saying that the 4 months (and not the 36 prior to it that you owned the home) caused the rot and therefore the rot is the fault of the insurance company.

Most insurance policies also exclude damage that happens over a period of "weeks, months or years". Your loss is going to fall under this exclusion too.

You also have a duty to "mitigate your loss". That means to make it not worse. Once you discovered that there was a leak, you have duty to prevent the leak from getting worse -- to prevent further damage. That's why you have to put plastic up to cover a broken window or put a tarp over a hole in your roof.

So, once you discovered the improperly installed gutter, what action did you take to keep the leak from getting worse?

Your duty to mitigate your damage does not depend on the insurance company making a payment. You have this duty because you own the property.

Does your situation suck rocks? Sure.
And as bad as it sucks, it's still not a covered loss.

Sorry.

Connie Said:

will my homeowners insurance cover damage from a leak?

We Answered:

If this has been going on for a while, you very well may NOT have any coverage for it.

But, you could have a hard time getting a straight answer out of your Farmer's agent - he's been trained to say, "file the claim, let the adjuster decide". Of course, filing an uncovered claim counts against you. So you don't WANT to file the claim, if it's not going to be covered.

So what you want to do, is call your agent. You tell him, hey, I have a buddy with a rental property, and his tenant didn't let him know there was a toilet leak, and when the tenant moved out, he found all this water damage. If something like this happens to me, am I covered? And THEN you'll be able to get a straight answer out of him.