New Business Underwriter, Amanda Schultze, explains how to tell if you’re covered for water damage.
In the case of a residential building, such as a co-op, condominium or apartment building, if you have coverage written Special Form basis, which most insureds do, then you have coverage for damage caused by burst pipes. Other water damage such as flooding and water back-up of a sewer, drain or sump pump is normally excluded, but coverage can be added back for an additional cost. The same generally holds true for water that seeps in due to a burst water main. Lastly, most insurance companies will exclude damage to the interior from water, if the roof or exterior wall isn’t first damaged. They consider this a maintenance issue, but a few companies still do provide coverage regardless of whether the roof or exterior wall was damaged first, so be sure to check your policy.
In the case of a homeowner, including owners in a co-op or condominium, generally you will have coverage for damage caused by a burst pipe but will need to add water back-up for an additional premium. Or you can purchase a separate flood policy if you want additional coverage.
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