Hongkongers are used to hearing news about burst pipes, but no one wants the same thing to happen at their home. Regardless of the age of your house, there is a possibility for a water pipe to burst in the event of an accident, and it can cause damage and loss of your home contents and valuables. If, unfortunately, the water rushes to your neighbor’s property or floods the elevators in your building, and it just so happens that you fail to obtain a Home Insurance policy, you are likely fully liable for the compensation claims and high maintenance costs. In today’s blog, HoldCover will spell out how Home Insurance covers water leaks and water damage, and share some tips on claiming Home Insurance for water damage.
1. Third party liability may be arised in the event of a water leak
A leakage caused by a burst pipe can cause loss and damage to home contents, as well as the repair and replacement costs of pipes. What’s worse is that third party liability may arise if the water flows to nearby apartments, seeps to the ceiling of the apartment downstairs, or even floods elevators. The homeowner might have to pay for the legal liability claims and bear elevators’ maintenance costs if he/ she doesn’t obtain a Home Insurance policy with the coverage of third party liability.
2. What kind of protections can Home Insurance provide?
Generally, a standard Home Insurance policy provides several protections* in addition to third party liability for accidental water-related damage, including:
- Home contents (Furniture, furnishings, appliances, computers and valuables etc.)
- Fixtures (Walls, floors and doors)
Fixtures provided by the construction company are considered as building structures which shall be covered by Fire Insurance. For detailed information, please refer to another article published by HoldCover: [Protect Your Home: What are the differences between Fire Insurance and Home Insurance?]
- The rental expenses incurred for temporary accomodation for the period while insurer’s home is uninhabitable due to accidental water leakage
- Referral information for plumbing services
*The information above is for reference only. For detailed coverage or exclusions, please refer to the insurance company’s policy terms and conditions.
3. Steps to claim Home Insurance for water damage
Step 1: If there’s a burst pipe, shut off the water as soon as possible, and move your property away from flooded areas; also inform the management office of your building immediately. Stop the water flowing out of the house to your neighbors’ houses or the elevators with sandbags or water pumps which you may borrow from the management office.
Step 2: If you have obtained a home insurance policy, document the extent of damage by photographing the entire scene, the affected areas and items such as damaged pipes and home contents, flooded areas and the water flow as detailed as possible, they can be supporting evidence for settling the claim.
Step 3: Move your belongings to a dry place away from the leak, and inform the insurer right away, but remember not to clean the affected areas as the insurer is likely to send claims personnels or notaries public to evaluate damage or loss caused by the incident. You can also prepare a complete list of any damaged property and possessions including the quantities and values.
Step 4: Submit your claims application to the insurer within a specified date attaching the photos of flooded areas and water-damaged items. The more sufficient supporting documents, the faster the claims process would be.
4. What type of water damage is not covered by Home Insurance?
Water damage that is considered ‘accidental’ is covered by Home Insurance. However, the problems mentioned below shall fall outside the scope of coverage:
i) Negligence
Water damage caused by negligence such as forgetting to turn off the tap.
ii) Lack of maintenance
Such as not repairing a plumbing problem.
5. How to choose the right Home Insurance policy effortlessly?
When it comes to keeping your home from getting soaked, a home insurance policy could give you peace of mind. Although there are many types of home insurance available on the market, it’s not that difficult to find the right policy with HoldCover. Our one-stop online platform allows you to compare different home insurance quotations and policies from different insurers at once. Get your beloved home insured in just a few minutes!
Click here to get quick home insurance quotes!
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Wave goodbye to the old-fashioned and confusing way of insurance and say hello to HoldCover, an online insurance platform where you can easily compare similar policies across different insurance companies. You can identify what’s best for you by optimising for cost, coverage and other perks. Our online platform is 24/7 which means you can shop and manage your insurance at anytime and anywhere.
