Water damage is a common and costly problem for homeowners and businesses. It is estimated that water damage causes more than $10 billion in damage each year in the United States alone. ### **How does insurance work for water damage?** Most homeowners insurance policies cover water damage, but there are some exceptions. For example, some policies may not cover water damage caused by flooding or other natural disasters. It is important to read your insurance policy carefully to understand what is and is not covered. If you have water damage, you should contact your insurance company as soon as possible. The insurance company will send an adjuster to assess the damage and determine how much it will cost to repair or replace your property. The insurance company will typically pay for the cost of repairs or replacement, up to the limits of your policy. However, you may have to pay a deductible, which is a set amount of money that you have to pay before the insurance company starts to pay for the repairs. If you have water damage, it is important to take steps to prevent further damage. This includes turning off the water source, drying out the area, and removing any damaged materials. You should also contact a water damage restoration company to help you clean up the damage and prevent mold growth. ### **Additional Resources** * [How to File a Water Damage Insurance Claim](https://www.iii.org/article/how-to-file-water-damage-insurance-claim) * [Water Damage Coverage in Homeowners Insurance Policies](https://www.naic.org/consumers/homeowners-water-damage-coverage.htm) ### **Conclusion** Water damage can be a costly problem, but it is one that can be prevented and mitigated. By taking steps to protect your property and understanding your insurance coverage, you can help to minimize the financial impact of water damage.