If you have recently experienced a major plumbing issue in your home, you may understandably be focusing on how you can most easily pay for your repair bills. Leaking or ruptured pipes are among the most common cause of water issues in the home, and water damage as well as pipe repair bills can easily mount into the thousands of dollars. Sewage backup issues are another common cause of water issues in the home, and this may require special cleanup services as well as expert repair services. Many homeowners wonder if their home insurance policy will cover the cost of repair work needed for their home. With a closer review, you may be able to determine if you should file a claim against your policy.
What a Typical Homeowners Insurance Policy Covers
Each home insurance policy may be slightly different, so there is not a catch-all answer to whether your policy will cover your plumbing issue or not. Most policies, but not all, will pay for plumbing issues that are sudden or caused by accidental damage. For example, if a pipe ruptures because of cold weather, the repair work usually is covered. On the other hand, a slow leak that develops because of aging pipes may not be covered. It is important to discuss the situation in detail with your insurance agent to learn more about what your policy covers as a first step. Taking the time to do this may help you to avoid paying thousands of dollars in repair bills out of pocket.
Review the Repair Cost Against the Deductible Amount
Even if your plumbing issue is covered by your home insurance policy, you may want to think twice before filing a claim. For example, a typical home insurance policy may have a deductible that is one to two percent of the face value of the policy. This means that you may need to pay a couple thousand dollars out of pocket for your deductible, and the insurance company will pay the remainder. Many plumbing issues do not cost this much to repair, so it may not be worthwhile to file a claim. If insurance may pay a few hundred dollars or more of the total repair cost, it still may not be worthwhile to file a claim. This is because there is a chance that the insurance company may increase your premium if you file a claim.
With these two important factors in mind, you may more easily determine if you need to file an insurance claim for your repair work. If you choose to pay for the cost out of your own pocket, keep in mind that some plumbers will work with you to structure an affordable payment plan for very large expenses. Others, however, require the full amount to be paid when services are rendered. If you need a payment plan, inquire about this option before you set up service for your home. Visit Marco Plumbing Ltd. if you would like to learn more.