Water & flood damage: What's covered?

Water, water, everywhere.

Imagine it … you swing your feet out of bed in the morning onto a sodden carpet, ankle deep in water. Whether it’s from a ‘once-in-a-generation’ flood or simply leaving the tap on, it’s about now you start trying to remember what your insurance covers.

Water and flood damage are some of the most common reasons for insurance claims, so what exactly are you covered for?

Natural disasters

It seems like adverse ‘100 year’ weather events are becoming all too common throughout New Zealand. The reassuring things is most home and contents policies provide cover for sudden and accidental loss caused by storm or flood. However, if you live in a flood-prone area, you can expect to pay more for your cover.

So, when buying a new home, there’s a few things you need to check:

1. The LIM (Land Information Memorandum) report for the house to see if the council’s classified it a hazard risk.

2. Your council’s online hazard maps to see whether the home’s built on a flood plain, storm surge area or is likely to end up underwater due to global warming!

3. Get an earthquake and flood risk rating for the property from Tower. All you need to do is start a house quote on our website and we'll give you an obligation-free risk rating based on the latest data and insights. This will also tell you whether it's easy to get insurance for that new house.

Everyday watery accidents

Whether a pipe bursts and your ceiling collapses, or your hot water cylinder leaks and floods your laundry, most home and contents policies cover you for water damage caused by everyday accidents.

But not all water damage is so obvious. Often leaks start as slow drips in wall cavities or ceilings, and by the time you notice it … well, it’s not good! Thankfully, most premium home and contents policies contain a benefit for hidden gradual damage, with cover of between $2000 and $5000 for damage caused by leaking pipework.

Top tips to help you with a water damage insurance claim

While there is no way to guarantee a successful water damage claim, there are some steps you can take to help improve your chances of having your claim accepted:

• Conduct regular maintenance on your home. This includes inspecting flexi hoses (hoses that are usually used in dishwashers, washing machines, sinks and taps) for any signs of damage or leaking. This is important because your insurer typically won’t cover you if the water damage is caused by a leak that you should reasonably have been aware of.
• Maintain records of any repairs or replumbing you’ve made over the years.
• Make sure you read your policy document so you are aware of the circumstances you are and aren’t covered for. You can read Tower's latest house and contents policy documents on our website or if you're already a customer, log in to My Tower to view your policy document.

So, in summary, know what you’re covered for when it comes to water and flood damage. That way you won’t be left high and dry when it comes to making a claim.