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During a cold snap, the pipes in your
building freeze and burst. While doing
a load of laundry, your washing machine
overflows. A heavy rainstorm causes
water to leak through the roof of
your building--and you live on the
top floor. Water damage occurs frequently,
so it's a good idea to know what is
(and isn't) covered by insurance.
Won't my landlord's insurance
cover the damage?
Your landlord's insurance will provide
coverage for damage to the building
itself, but it won't provide coverage
for damage to your personal property.
And if your landlord's policy only
provides coverage for damage to the
exterior of the building (you can
find this information in your rental
agreement), it won't cover the cost
of replacing pipes, carpeting, wall
coverings, etc. inside your rental
unit. (Depending on the circumstances,
your landlord may still be liable
for repairs, even if the damage is
not covered by insurance.)
What about renters insurance?
A good renters policy will provide
coverage for most water damage. Just
make sure that it is specifically
mentioned in the policy--that way
both your damaged belongings and the
cost to repair the rental unit itself
(e.g., new pipes, carpeting, wall
coverings) will be covered. One possible
exception: whatever causes the water
damage (e.g., dishwasher, washing
machine) may not be covered by your
renters policy if you failed to maintain
it properly.
What if the water damage
is the result of a flood?
Basic renters insurance doesn't provide
coverage for water damage that is
a result of a flood. If you live in
a flood-prone area, you'll need to
purchase a separate policy or add
a rider onto your renters policy for
this type of coverage.
What if I can't live in my
apartment as a result of the water
damage?
Most renters insurance policies will
provide coverage for additional living
expenses incurred if your rental unit
is unlivable. In other words, the
insurance company will pay for you
to live at another location (at a
price similar to your old apartment)
while your apartment is being repaired.
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