SERVPRO Recommends Sump Pump Endorsement On Your Homeowner's Insurance Policy
Pretend that it is March. The winter snow is beginning to melt and the weather report is calling for a lot of rain. Or pretend it's summer and a very heavy band of rains travels across your area. Your newly finished basement remodel has everything you wanted, new plush carpet, a high end theater system, beautiful paint on the new walls and your furniture is perfect for the space. You can hear your sump pump kicking in as it should and you think everything is safe. The next morning, you wake up to your spouse saying "There's water in the basement." How much do you know about your homeowner's insurance policy? When was the last time you actually went through the policy to see what is covered and what isn't? Most of the time, homeowners just pay their bill and never look at their policy. In the case of a sump pump equipment failure it is imperative to know what coverage your homeowner insurance includes (or doesn't!)
Typically, an insurance policy comes with "basic" coverage. Things like a broken pipe in the wall or a roof leak are usually a covered loss. When it comes to sump pumps or sewage pipe backup, you will most likely need a special endorsement on your homeowners policy in order for insurance to help you with the cost.
A common endorsement is a Sump Pump endorsement. This is something that is an add-on to most basic insurance policies. If you don't know to ask about, it can often be overlooked. Sadly, once SERVPRO gets on site, the damage is already done and if there is no insurance coverage, the cost will be out of pocket.....your pocket. A common Sump Pump endorsement will come with a set coverage limit. Generally the limits will be in increments of $5,000. This results in the homeowner having $5,000, $10,000 or $15,000 insurance coverage for a sump pump failure type of loss. This seems like a lot of money but in reality, the loss could exceed $5,000 easily.
First, SERVPRO will come to the house and assess the damage. We will then take out all the wet materials in the area if needed. Then the area needs to be thoroughly dried to avoid any future damage from moisture, (ie, mold). An average water loss for SERVPRO ranges between $2,500 and $3,000. If your insurance endorsement has a $5,000 limit, that means you only have $2,000 to put the basement back together again. New carpet pad, new carpet, new insulation, new drywall, paint on the drywall, new furniture if necessary, etc. $2,000 isn't a lot left over. And if your policy has a limit, that means, that's the MOST that insurance will pay.
Historically, SERVPRO has found there is an above average amount of homeowners that find out they do NOT have proper coverage or any coverage AFTER they need help. Once SERVPRO does an assessment of the damage, those homeowners are met with a very real situation that could make a large financial impact on them.
SERVPRO recommends reviewing your insurance policy annually to ensure you have coverage you need. Don't be afraid to ask questions. If you have the information, you will be better prepared in the event of a water or fire emergency in your home.
For all your emergency water damage or fire damage needs, call SERVPRO of Jefferson County/Oconomowoc. 920-674-3002 and speak with a certified water restoration technician.