Over the last several days I have had many phone calls from current clients as well as people who just need an answer. The problem is this: we have had heavy rains for 3 days straight and now people’s basements are full of water.

Some of the questions sound like this:

What do I do and where do I start?

Do I have insurance coverage from this damage? And if I do, how much coverage?

Does my deductible apply?

Here are my answers to these questions as I have told my clients and as I would like to share with you:

What do I do and where do I start?

As with any other claim, I always suggest to forget that you have insurance think what would you do without coverage. First, you need to remove your contents from the water damage and try to save as many items as possible. Next, you want to try to pump out as much water as possible. If you didn’t already, than you may want to consider purchasing a sump pump at Home Depot, Lowes, or any similar store and have it pump the water out.

The next thing I am going to suggest should be taken more seriously than anything else in the claim: call a company to come and check if there is any mold that resulted from the water damage. I have seen it many times, that people dry out their basement and assume that they do not have mold because they cannot see it. The reality is that mold is sometimes not seen, but you continue to breathe it. If this were my house, I would call a restoration company who has the proper equipment and have them measure your levels of mold.

Do I have insurance coverage from this damage? And if I do, how much coverage do I have?

The answer lies in what caused the damage. If the water is in your basement from rains, than unfortunately there is no coverage from “rain,” or from water seeping in. The way the homeowner’s insurance policy is written, it states that water is excluded. HOWEVER, there are certain exceptions to this rule. Here are the two most common coverage’s that you could be covered from if your agent properly insured you:

1. Water back-up- This means that if your sewers, drains or pipes backed up and that is what caused the water damage, than if your agent did the right job for you, you will have coverage
2. Sump Pump Failure/Overflow- If you currently have a sump pump that has been pumping the water out of your basement and it either failed or could not handle the amount of water that was coming into your house, than you once again should have coverage as long as your agent added the proper coverage to your policy.

Both of these coverage’s are not automatic, but should have been advised to you by your agent.

Then next part of this question is how much coverage do I have?

This depends on your specific company and what they offer. Typically, most carriers will offer $2000 to $5000 of coverage and you can usually purchase an additional $5000 if  you choose, but that is completely separate.

Does my deductible apply?

The answer to this question can once again be found in your policy because it varies by company. However, the typical deductible for this coverage is $250 or $500, regardless of what your deductible is on the rest of your policy.

If you would like us to take a look at your policy and help you understand if you have coverage, feel free to call our office at 617-928-9222, we would be happy to help.

The author

Edward H. Lukatsky is the President/CEO of Lukatsky Insurance Group. He and his team help businesses all over the country improve profitability through his trademarked Risk Reduction Approach™. This approach consists of identifying the risks, threats and opportunities facing an organization, developing a program to reduce the risks and take advantage of the opportunities, and helping to implement the plan at all levels. He has been chosen as a “Top 20 Producer” in the country by the National Insurance Organization in 2005. He often speaks at industry associations, conferences, and other engagements. You can reach Edward at 617-928-9222 or by email at edward@lukatskyinsurance.com