Home Insurance claims

[Yuvaraj Vimawala]

Hi Fellow BPites,

I recently ran into some bad luck and had two major plumbing repairs on two properties. Expenses were $2.5K and $5.5K (& counting) respectively. In both cases I had sewage backup into the home. The former damage was caught early and didnt damage flooring or drywall. However, the root cause was tree roots had hijacked the sewage line, which had to be removed and line cleared. The second issue, did flood the home with sewage, but again limited damage. No flooring or drywall to be replaced. However, the plumbing cost alone is $5K. Root cause is still unknown for 2nd issue. My deductibles are in the $1500 range for each so it is worth filing a claim. 

I thought of filing an insurance claim - and guess what, ASI lloyds tells me "plumbing issues are not covered". They were willing to cover the ensuing damage by the sewage back up (which is most likely less than my deductible) but not the actual plumbing repair. 

My question to the community is, should I hire a lawyer to deal with them? Has anyone had any luck dealing with these insurance companies(especially in Texas)? Yes, I know I am not asking for legal advice - just experience and guidance on whether its worth investing time in this battle. 

Thank you in advance. 

[Fred Heller]

The answer lies in your insurance documents. But chances are the plumbing itself will not be covered. There are companies that insure plumbing for a relatively reasonable fee. The one I'm most familiar with is American Water Resources. They'll cover your plumbing from the meter, through the house, and all the way out to the main sewer line.

Now here's some more good news. Since you've had two water claims in a short period, it may impact your ability to get reasonably-priced insurance. Insurance companies use a service called CLUE, which is like a credit report for your home. Multiple claims may make it hard to get insurance on the open market, so make sure those premiums are paid on time.

I discovered that little fact when I bought my current house. The previous owner had three water claims within three years, so I had to go into the high-risk pool and the premium was close to double what I should have been paying.