If your Florida home is 40 years or older, it is likely your home insurance policy excludes or has limited water damage coverage. Most homeowners are unaware of this coverage limitation in their policies.

In 2016 a trend began where a few home insurance companies began to modify their policies as it pertained to water damage coverage. The policies were amended to exclude all water damage with a “buy back” option for limited water damage coverage. The limited water coverage “buyback” provided $10,000 of total coverage. This exclusion/limitation primarily pertained to homes over 40 years of age.

Today, it is standard amongst almost every home insurance carrier to see the water coverage limitation when insuring older homes. The common policy language pertaining to the water loss limitation provision states “….limited coverage for water damage due to sudden and accidental discharge or overflow of water or steam up to a $10,000 limit.”

The policy language regarding limited water coverage points directly to plumbing leaks. The maximum payout limit of $10,000 might seem like a lot of money, but the reality is a serious water claim could easily exceed the policy limits. Furthermore, depending on the policy, the water damage limit may apply to any type of water damage. Keep in mind, home insurance policies have always excluded the coverage for a flood event as defined by the NFIP.

People who purchase a home insurance policy with a water loss limitation usually do so because they are unaware of the coverage limitation or they believe there are no other options. It is becoming more and more difficult to find home insurance companies who will offer full water coverage for older homes. But there are still a few.

Those who are seeking a home insurance policy for a home over 40 years of age should be aware of this important coverage limitation. Ask your agent if they have companies who offer full water coverage. Do not purchase a home insurance policy with the water damage limitation if it can be avoided. Water damage can easily exceed tens of thousands of dollars and could become a financially devastating event.