CREPN #63 - Is Water Damage Covered or Not?

CREPN #63 – Is Water Damage Covered or Not Covered?

J. Darrin Gross Podcast

Is Water Damage Covered or not?

Water falling from the sky is rain.  Water rising from the river is flood and NOT COVERED.  Water bursting from a pipe is COVERED!  Is Water Damage Covered?


If you have ever read an insurance policy it’s easy to want to make the pain stop.  

However, if you have a claim, it is important to know if you have coverage, or not.

On Joe Fairless Best Ever Show Podcast #746 I was the guest and we discussed damage caused by water.

The standard property policy EXCLUDES Water:
  • Flood, surface water, waves, tides, tidal water or spray from any of these
  • Mudslide or mudflow
  • Water that backs up or overflows or is otherwise discharged from a sewer, drain , sump, sump pump or related equipment
  • Water under the ground surface pressing on or flowing or seeping through:
    • Foundations
    • Basements
    • Doors or windows

Unless through one of these the result is a fire, explosion or sprinkler leakage.

We also talk about the EXCLUSION of Underground pipes or drains.

Backup of Sewer or Drain.

There are many companies that will give back coverage for:

  • Backup of Sewer or Drain for limits from $5,000 to $100,000

Flood is its own policy.  

If you are concerned about Flood or your property is in a flood plain, you will need a Flood Policy.  The flood maps are currently being redrawn, and many properties that were previously thought to be not in a flood plain have found they need flood insurance.

If this describes your situation, you have a couple of options:

  • Purchase Flood Insurance
  • Get an elevation certificate that determines you are above the floodplain.
    • Get a letter of Map Amendment
      • Checkout CREPN  #35 with Steve Gill, owner of Flood Risk America

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For more information about Commercial Real Estate Insurance like this, get your  Commercial Real Estate Insurance Buyers Guide

About the Author

J. Darrin Gross

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J. Darrin Gross is known to his clients & prospects as the most trusted insurance adviser for commercial real estate insurance. He is famous for helping apartment building and commercial property owners get high quality comprehensive protection at unbeatable rates. Download a free copy of the Real Estate Investors Guide to Commercial Insurance.