Our hearts are with all of those who have been displaced and are dealing with loss of all kinds in the aftermath of Hurricane Helene, Hurricane Milton and other severe weather events. Given this recent storm activity, we felt it is worth sharing some helpful information to homeowners in regards to what property insurance covers and does NOT cover related to water events.  We would like to thank Allstate Insurance agent Whitwell Kelly for his contributions to this article.

"What does my insurance cover when there are water-related events?"  We pose this question to Whitwell Kelly, a local and trusted Allstate Insurance provider in Salem, VA …

All property policies - homeowner's, condo, landlord's, renter's, etc. - cover some forms of water damage, but ALL property policies EXCLUDE flood damage. If the property is in the floodway or the floodplain, lenders will require flood insurance. However, if there is no loan on the property, you are not required to have flood insurance. Some investors choose to self-insure rather than pay for flood insurance, which can be very expensive.

Before I got into insurance, I ran a factory that was in the floodway. We chose not to carry flood insurance, as the cost was prohibitive. We configured our machinery so that the electronics for the equipment were mounted high enough to put them out of danger, and we would just hose the floors and equipment down after a flood and go back to work. Given where the plant was situated, this was a common event.

As this is not an option for everyone, most property owners, especially homeowners in danger of flooding, will want flood insurance.

Allstate currently has three options for flood insurance:

1. Allstate Flood - while it looks like this is an Allstate product, we are really acting as a reseller for the National Flood Insurance Program (NFIP).  Depending on the type of loan, you may be required to purchase NFIP insurance.
2. Aon Edge - this is a private, non-NFIP, flood insurance option that can be less expensive than an NFIP policy.
3. Beyond Floods, by National General, an Allstate Company - this is another private, non-NFIP, flood option. It is a new offering for us, but so far it seems cost competitive.

Now, back to what the standard water coverages on a property policy are. Property policies will usually cover water damage caused by an overflow or a broken pipe in an occupied and maintained home:

An overflow occurs when there is a blockage in the customer's plumbing system. The water that backs up into the customers home will normally occur through the point of least resistance (e.g., toilet, shower, sink, etc.).  Whenever there is a blockage or break in the plumbing system located on the customers premises, water being used inside the home has nowhere to escape and will come back inside the home – this is not considered a back-up. Typically, this scenario would be termed as an "overflow" or "escape" of water from a plumbing system and, depending on the individual facts involved, may be a covered loss. Generally, if an overflow occurs suddenly and accidentally, the resulting water damage may be covered under the homeowners policy as an overflow, even without a water backup endorsement.

BUT without adding a water backup endorsement, the property policy will NOT cover water backup. Water backup is defined:

Water backup occurs when water outside the customers plumbing system flows backward through the plumbing into the residence premises. Water backup can occur when a great deal of rain overtaxes the sewer systems causing water to flow backward through the customers pipes and into the customers home. Water backup can also occur when a blockage in the public sewer system off of the customers premises causes sewage from other homes to be diverted into the customers home.

Again, a standard property policy does NOT cover water backup. You have to add the water backup endorsement, which most customers find is reasonably priced. I nearly always recommend this for clients, and rarely is the coverage refused. With the water backup endorsement, some examples of incidents that would be covered are:

• Water that backs up through sewers or drains located on the residence premises.
• Overflow from a sump pump, well, or system located within the residence designed for the removal of sub-surface water which is drained from a foundation area of the structure.

Some common causes of water backup are:

• Off premises (township) pipe failures and blockages.
• Excessive rainwater.
• Power or mechanical failures at sewer pump stations.
• Settlement or movement of soil adjacent to the pipe.
• Tree roots.

Often there is debate about who is responsible for water backup. The short answer is that if it's on the street, the city is responsible for fixing it, but if the blockage is on your property, you (or your insurance company) are responsible to repair it. The most common cause I've seen is tree roots growing into the line. In our area, older homes were often built with sewer lines made of Orangeburg pipe, which is particularly susceptible to tree root damage.

Now, we've already covered that flood water is not covered by a property policy, but what about groundwater? It can be confusing, but groundwater is NOT considered the same as water backup, and is often NOT covered. 

• Coverage is excluded for flood water and water on or below the surface of the ground. This includes water which exerts pressure on, flows, seeps or leaks through any part of the residence premises. 

If you have questions about how groundwater would be covered, we can take a look at the specific language in your policy.

Water issues are often confusing and I'm happy to discuss any questions you may have. Our office is at 603 Apperson Drive, Salem, VA 24153, main office number is 540-342-2115, and my email is whitwellkelly@allstate.com. And of course you can always call me or text me on my mobile, 540-400-5292.