Paying for water damage restoration and making your home livable again can be expensive. According to Angi, the average cost is $20,518. However, if the water damage is minor, the cost could be under $1,000, while extensive damage could exceed $38,000 (in some cases, as much as $158,000!). So, the real question is: Who pays for water damage restoration?
Will I need to pay for water damage restoration out-of-pocket?
That depends on several factors, including what caused the water damage and how extensive it is. If your home has been damaged by water, you might not have to cover the entire cost yourself. Here are some options:
Homeowners Insurance
Most standard homeowners insurance policies cover water damage caused by incidents such as plumbing leaks, appliance failures, or accidental overflows. Even if you accidentally left a faucet running, your policy may cover the resulting damage. However, flooding caused by natural disasters is typically excluded and may require separate flood insurance. Intentional damage, on the other hand, is never covered.
Insurance Coverage for Water Incidents
Generally, a separate water damage policy isn’t needed. Homeowners insurance usually covers necessary repairs. Additional options may be available depending on your insurer. These may include dwelling coverage to help rebuild your home, personal property coverage to replace damaged belongings, and liability coverage for damage affecting neighbors.
Liability Insurance
Whether the tenant or the landlord pays for restoration depends on who caused the water damage and if liability coverage is in place. For instance, if a tenant leaves a faucet on and causes damage, they might be responsible. But if the damage was due to the landlord’s negligence—say, a broken pipe that wasn’t repaired—the landlord’s insurance may pay for it.
How much will insurance cover?
All insurance policies have limits, meaning there’s a maximum payout the insurer will provide. Additionally, you’ll need to pay the deductible before the coverage kicks in. Depending on your policy, this deductible could be a fixed dollar amount or a percentage of the total coverage.
Water damage restoration is a job for professionals
Restoration costs vary depending on the type and source of the water damage. The Fire Equipment Manufacturers Association outlines five categories of fire, which we’ll reframe for water damage types and costs, based on a 2,500-square-foot home:
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Kitchen Appliance Leaks: Water damage from dishwashers, sinks, or refrigerators can spread quickly. Restoration typically costs between $12,000 and $20,000.
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Electrical Water Damage: Water exposure to electrical systems can cause extensive damage. Restoration often ranges from $12,000 to $23,000.
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Ordinary Household Leaks: Issues like pipe bursts or leaky fixtures usually cost $9,000 to $14,000 to repair.
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Chemical Water Leaks: Leaks involving water mixed with chemicals, such as cleaning agents, can cost $14,000 to $20,000.
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Industrial Water Damage: Less common in homes, but damage from machinery or special systems may cost between $16,000 and $25,000.
Water damage restoration can also involve rebuilding, which varies widely in cost. For example, kitchen remodeling can run up to $40,000, drywall replacement up to $3,000, roof repairs around $6,500, and flooring repairs anywhere from $400 to $20,000.
Should you try DIY water damage restoration?
Handling water damage on your own can be dangerous and might not save you money. Additionally, your insurance might not cover DIY repairs. Certified water damage restoration professionals know how to handle hazardous materials, salvage your belongings, and restore your property correctly. They’re trained to remove water, eliminate mold risks, and clean up contamination safely.
Hiring professionals comes with many benefits:
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Faster restoration timelines
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Knowledge of local building codes
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Reduced risk of exposure to harmful contaminants
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Prevention of structural failures like collapsing walls or ceilings
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Insurance typically requires licensed, insured contractors
Contact Clear Sky – emergency services for water damage restoration
Clear Sky provides expert water damage restoration services in Whatcom and Skagit County. We’re available 24/7 and can be at your location within 60 minutes to minimize damage, eliminate odors, and begin cleanup. We work with all insurance providers. If your home has suffered water damage, contact Clear Sky Emergency Services at 360-734-8525 today.