Are Water-Related Losses Covered by Insurance?

2/10/2021 (Permalink)

Do you have water damage coverage?

What Is Covered By Your Insurance Policy

Many businesses in Round Rock, TX, face steep costs to repair water damage. Water from damaged pipes and other sources can cause a lot of damage that needs to be repaired by water restoration professionals. 

Freezing
Many damage claims are caused by frozen pipes. When a frozen pipe occurs, water may slow down or not flow through it at all. This causes pressure to build up and the pipe to burst. Unfortunately, this event is typically not covered by insurance companies. However, there are certain exceptions. Here are the times when frozen pipes are covered:

• There is damage to fire protective systems
  
• You did your best to maintain heat in the building
  
• You don't maintain heat, but you do drain all the pipes in the winter
  
  

Sudden Water Damage
Suddenly damaged pipes and appliances are covered under most policies. For example, you leave for the weekend without leaking pipes and return to find one has ruptured and water is pooled on your floor. This has caused extensive damage to your flooring. Because it was sudden, you can expect to have the repair costs covered. Additionally, you can expect any damage caused by a sudden rupture of your fire protection system to be covered. This type of coverage includes the costs of repairing your building. It also generally covers the cost of replacing equipment and furniture.

Fire Protective Systems
Damaged pipes to your appliances are generally not covered under your insurance. However, any damage caused by water released by a fire protection system will be covered. Additionally, the cost to repair or replace the system is covered.
Flooding and water damage comes with great costs for a business. Fortunately, many of these events are covered under standard building insurance. Therefore, business owners should know what is covered under their policies.