Insurance For A Flooded Mancave

Spring-like weather in January has hit the Midwest.  As much as we have been enjoying the temperatures, our yards are saturated with the snow melt.  Now, much of the area is under a "flood watch" as new rainfall is expected which may cause rapid runoff.  What's a homeowner to do in anticipation of a wet basement?  Especially when your basement is really a very expensive "mancave" complete with all of the amenities.  Let's look at your options:

You've seen all the commercials and heard the news that "flood" is not covered by your homeowners policy, so, let's buy a flood policy.  Problem #1, a new flood policy normally has a 30 day waiting period before coverage can take place.  Since the rain is predicted tonight, the flood policy for this current situation is not the answer.

Problem #2, even if you already have a flood policy in effect, the flood policy has very limited coverage for the lowest elevated floor of your home; i.e. the basement. More bad news, most personal property in the basement is not covered by the flood policy.  You knew that, right?

Many of you are thinking that surely, water running into a basement isn't really a flood. You are thinking that your homeowners policy will take care of the damage.  Let's look at one section of the standard water exclusion on a homeowners policy:

-  " excludes water which seeps or leaks through a building, sidewalks, driveway, foundation".

What?  You have been paying those increasing insurance premiums for years and you don't have coverage for water in your very expensive mancave?  Surely, Insurance Addict, you are mistaken.  Ummm...not really.  Let's discuss the homeowners policy and water damage.

The easiest way to try to keep it straight is to remember that your home policy will cover sudden and accidental losses.  Examples: pipes burst in your walls, the washing machine hose gets disconnected and spouts water for hours, the toilet runs and runs and runs for hours creating a waterfall from your second story steps to the living room.  These are examples of sudden and accidental water damage.

Where CAN you get the coverage you need for your basement and its belongings?  For tonight's rain, prevention is the best answer.  As I learned the hard way, all of my precious "goodies" that are stored in my basement are now kept in  large waterproof plastic containers.  When my lawn can't handle the rain water and it runs in my basement, I know that my keepsake photos, papers, etc. are protected.

Another option is to invest in a water sensor or basement flood alarm.  That way when the water starts to invade your mancave, you can move or elevate the larger items, like electronics.

Make sure your home is in good repair by caulking foundation cracks and inspecting gutters and downspouts.  These are just a few items on the Trusted Choice "Time To Winterize" list.

If sewer backup is a problem in your lower level, add "Sewer and Drain Backup" coverage to your home policy.  You can buy back this protection for usually less than $75/year.

Keep in mind that the flood policy defines a flood as "unusual and rapid accumulation or runoff of surface waters from any source".   (exactly what many of us will experience after this January rain)  My suggestion is to contact your Trusted Choice agent and ask for a price on a flood policy for your residence.  You may be surprised at the affordability. Remember, once your flood policy is in effect, there is still no coverage for your personal property in the mancave.  You will, however, have coverage for the drywall, furnace, hot water heaters, electrical and plumbing systems and other "building" items.

Water damage claims are some of the most confusing, frustrating and costly types of claims.  Talk to your Trusted Choice agent about your options BEFORE your "mancave" is damaged.