Sump Pump Failure/Insurance Question

[Cowgirl]

We got massive amounts of rain in a short time early Sunday morning, and of course our sump pump failed. Basement flooded (only 2", thank goodness) and insurance is covering it. We have to pay the deductible and our rates will go up, but our agent just told my husband that if the claims rep determines it was caused by an act of nature, our rates will not go up (but we still pay the deductible). I'm just confused about that, because if I tell them the rain came in through the cellar door, will they say that was a flood? It clearly was not a flood, it was just rain from downspouts. Should I tell him I don't know where the water came from? :shrug: Or should I just say it came from the door and it only caused damage because the sump pump failed? :shrug:

 

[bohman]

We got massive amounts of rain in a short time early Sunday morning, and of course our sump pump failed. Basement flooded (only 2", thank goodness) and insurance is covering it. We have to pay the deductible and our rates will go up, but our agent just told my husband that if the claims rep determines it was caused by an act of nature, our rates will not go up (but we still pay the deductible). I'm just confused about that, because if I tell them the rain came in through the cellar door, will they say that was a flood? It clearly was not a flood, it was just rain from downspouts. Should I tell him I don't know where the water came from? :shrug: Or should I just say it came from the door and it only caused damage because the sump pump failed? :shrug:

I would just tell them the sump failed. That was the first question I had for my insurance company when we bought a house with a sump: If it fails, am I covered with my regular homeowners coverage, or do I need to purchase seperate flood insurance? They told me I'd be covered under the normal policy for a sump failure.

Of course, that's my insurance company, I don't know what yours will say. Best of luck to you.

 

[lovinmaryland]

You dont need to tell them anything. The person that will come to your home is throughly trained to tell how/when/where/why the claim happened.
Best thing to do is have them come out and take a look or better yet if you havent yet filed a claim you could have someone else come out and giv eyou a free estimate. They should be able to tell you exactly what happened what the damages should be and what will be covered. Also just and FYI when you file a claim even if nothing is paid out it is a ding, kinda like a point on your DL.


If you dont mind my asking who is your company?

 

[ItalianScallion]

Mine failed twice about 10 years ago. Once because of a power failure from the hurricane of 2002 and another time because the pump itself broke. Both times my insurance company (Erie) wouldn't cover it. $400 out of my pocket for damages.

They said it was an "Act of God". I told them that God wouldn't do that to me. They said I had to have flood insurance for it to be covered. I asked them what "water" damage is covered? They told me: if it were from a broken water pipe or washing machine hose, it would have been covered but any rain damage is only covered under flood coverage.

Word to the wise: Know (beyond ANY doubt) what's covered and what's not long before the unthinkable happens...

 

[itsbob]

Do you have flood insurance?

Not that I'm cynical or anything but if you don't specifically have flood insurance he maybe setting you for non-covered damages and no insurance pay-out.

 

[Cowgirl]

We have State Farm. It's covered under some "backup of sewage and septic" or something like that. Insurance guy came out yesterday and said it is covered, but not by weather conditions, because if the pump hadn't failed we wouldnt' have had a problem. The carpet guy also gave us an estimate, and it's only a little higher than our deductible. Right now we're leaning towards not replacing the carpet bawl because it's not worth increasing our rates. Maybe we'll just paint the floor or something, or wait and do it later when we are more comfortable paying it.

 

[lovinmaryland]

We have State Farm. It's covered under some "backup of sewage and septic" or something like that. Insurance guy came out yesterday and said it is covered, but not by weather conditions, because if the pump hadn't failed we wouldnt' have had a problem. The carpet guy also gave us an estimate, and it's only a little higher than our deductible. Right now we're leaning towards not replacing the carpet bawl because it's not worth increasing our rates. Maybe we'll just paint the floor or something, or wait and do it later when we are more comfortable paying it.

Ok the only way it will raise your rate is A) if you have already filed a similar claim or B) you have filed several different claims against your home owners. When they say your "rate" will go up, most likely they are talking about you losing your claim free discount. That normally runs around a $100 for the year. So that discount would be removed for three years.

Good on you for having back up of sewer and drains. A lot of people decline that option when getting homeowners insurance.

Was it only the carpet that was damaged? I hate to tell you this but youve already called statefarm and filed a claim. So whether or not you replace the carpet is a mute point. This counts as a claim regardless if you are paid out or not.

 

[itsbob]

We have State Farm. It's covered under some "backup of sewage and septic" or something like that. Insurance guy came out yesterday and said it is covered, but not by weather conditions, because if the pump hadn't failed we wouldnt' have had a problem. The carpet guy also gave us an estimate, and it's only a little higher than our deductible. Right now we're leaning towards not replacing the carpet bawl because it's not worth increasing our rates. Maybe we'll just paint the floor or something, or wait and do it later when we are more comfortable paying it.

That was my point. I wasn't sure about the sump pump, but if you had said it was water coming in from the door, or water from another source because of the rain I don't think you would have been covered.

What is the cost of Home Owners insurance, and how much would a single small claim make your rates go up?

I can't imagine IF it went up it would be more than a few bucks a month..

 

[GWguy]

Insurance companies have strange ways of 'covering' costs. I had a tree fall on a shed, totaled it. Estimator came right out, we negotiated a price, got a check, no problem. Then I get my statement. My rates didn't go up, but they added a new surcharge because I filed a claim, the first one EVER in over 25 years. The surcharge was for 3 years, and exceeded the cost of the check they gave me for the shed.

bastages.

 

[kwillia]

Was it only the carpet that was damaged? I hate to tell you this but youve already called statefarm and filed a claim. So whether or not you replace the carpet is a mute point. This counts as a claim regardless if you are paid out or not.

I just read that in Readers Digest... "10 things you may not know about insurance".

 

[BadGirl]

I just read that in Readers Digest... "10 things you may not know about insurance".

I thought only old people read Readers Digest.

 

[kwillia]

I thought only old people read Readers Digest.

Hey... at least it's not the big print 8 x 11 version ...:shrug: yet...

 

[lovinmaryland]

I just read that in Readers Digest... "10 things you may not know about insurance".

Its the same w/ auto insurance. I have clients call who have been in accidents and say "oh my car isnt damaged so I am not going to get it repaired, just want to make sure the other veh I damaged gets fixed"

Either way its an accident and you are going to be charged accordingly whether $5 is paid out or $5k so you might as well get it fixed.

That is why I suggested she have someone give her an estimate before calling the insurance company. If the damage is $550 and you have a $500 deductible it really doesnt make sense to call in the claim.

She is stuck now so she might as well get the carpet fixed IMO.

I thought only old people read Readers Digest.

I love the littel quizes in RD

 

[itsbob]

I thought only old people read Readers Digest.

Did you forget to renew your subscription??

 

[Cowgirl]

Ok the only way it will raise your rate is A) if you have already filed a similar claim or B) you have filed several different claims against your home owners. When they say your "rate" will go up, most likely they are talking about you losing your claim free discount. That normally runs around a $100 for the year. So that discount would be removed for three years.

Good on you for having back up of sewer and drains. A lot of people decline that option when getting homeowners insurance.

Was it only the carpet that was damaged? I hate to tell you this but youve already called statefarm and filed a claim. So whether or not you replace the carpet is a mute point. This counts as a claim regardless if you are paid out or not.

The girl in the office told us we could cancel the claim if we wanted. :shrug: Was she wrong? And yes, the increase is due to losing the claim free discount.

 

[lovinmaryland]

The girl in the office told us we could cancel the claim if we wanted. :shrug: Was she wrong? And yes, the increase is due to losing the claim free discount.

You've already had the claim adjuster come out, so in their eyes that is a claim. I have never heard of them removing the claim. What state are you in? I can only speak for Maryland rules & regulations.

 

[Cowgirl]

You've already had the claim adjuster come out, so in their eyes that is a claim. I have never heard of them removing the claim. What state are you in? I can only speak for Maryland rules & regulations.

The Eastern Shore feels like a different world, but we're still in MD.

 

[Cowgirl]

Oh, and our claim free discount is about $285/yr or something like that. For three years. The cost to replace everything would equal the cost of the deductible plus the extra fees, so we're not sure what we'll do.

 

[lovinmaryland]

Oh, and our claim free discount is about $285/yr or something like that. For three years. The cost to replace everything would equal the cost of the deductible plus the extra fees, so we're not sure what we'll do.

If I were you I would call and ask to speak directly w/ your agent and see if since you have filed the claim and the adjuster has come out does that count as a claim.

I personally filed a claim that ended up not being covered under insurance through my State Farm policy. My claim free discount was removed.

 

[BadGirl]

So, it seems that if you contact your insurance company, for just a simple question, or for guidance, WITHOUT actually filing a claim, that that insurance contact constitutes a "claim".

The lesson learned is that if you *think* you might have a claim, to call someone else in the industry and get their opinion BEFORE contacting your insurance company.

Insurance is such a flippin' rip off.