Home Insurance : Are Water Damages Covered?

January 5, 2022

Home Insurance and unforeseen calamities go hand in hand. Read more to learn why.

It is safe to say that this was the gloomiest New Year weekend recorded in UAE’s history. On average, the UAE records 100 mm of rainfall a year, but over this weekend, we hit a record of 141.8 mm in 3 days. 

What does this mean for homeowners?

Water damages could potentially lead to molding, damage to belongings, homes, and additional expenses. 

Climate change is driving up home insurance rates across the globe. While, this may give people another reason to avoid home insurance entirely. Owners and renters need to remember that repairing your home and replacing your belongings are far more expensive than purchasing insurance. 

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What is Home Insurance? 

Home insurance is a form of property insurance that protects losses insured or damages caused to an individual’s property. It provides protection liability coverage against calamities to the house and its contents.

Dealing with water or fire damages in an uninsured home is every homeowner’s nightmare. Without insurance, It is implausible you will have the financial ability to repair or replace everything damaged. You never need insurance until you do!

 [Related: Home Insurance: 5 Reasons Why You Need Home Insurance!]

Homeowners versus Renters Insurance

The difference between the two coverages is twofold – ownership and liability. While homeowners are owners of the house or property they live on, renters do not own the property they rent. Therefore homeowners have the option of insuring the structure of their property and its contents, such as furniture, appliances, and personal belongings, while renters can only insure their home contents.

When it comes to liability, homeowners are liable for the maintenance of the house and its structure. Notably, homeowners insurance provides coverage to the home and structures listed within the range. Since renters do not own the property they live on; their landlords are responsible for insuring the structure. 

[Related: Home-owners versus renters insurance]

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Are water damages covered under home insurance? 

Homeowners’ and renters’ insurance typically covers rainwater and flooding damages caused to the house’s structure and its contents. However, It is important to highlight that there are terms and conditions to creating claims for water damages.

If water damages are caused by natural calamities such as heavy rains, then filing claims will not be a problem. However, if the cause of the flooding is the result of an accident, negligence of the property, or malicious intent, then claiming any insurance policy will be close to impossible. 

Your home and belongings will have to be under either homeowner’s or home contents insurance to file claims for these damages. 

Reading the fine print. 

Unforeseen calamities are why you need insurance—whether natural or unnatural, knowing that our car, home, and its contents are safe under an insurance policy gives us a sense of comfort. 

However, it is frustrating to learn about calamities not covered by your insurance provider after dealing with the accident. The reason for this is two-fold; not reading the fine print and cutting premium costs. 

Paying close attention to what your insurance policy covers will save you a lot of time and money – hidden costs are everywhere, look closely! While attempting to save some money, we tend to look for cheaper alternatives, significantly compromising the level of coverage and benefits you are signing up for.  

Your home is your biggest asset, and protecting it should be a top priority

[Related: Homeowners Insurance: What is not covered]

Insure your home with Hala’s affordable and comprehensive plans – click here.

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