The extensive damage caused by the water-main break in Dundalk last week has lead to many coverage questions and potentially erroneous interpretations.
Normally this type of loss should be considered a flood, and in order for there to be coverage there must be a Flood Policy in effect. This was confirmed by the Maryland Insurance Administration. Some insurance companies, however, have indicated they might cover the claims under homeowners’ or other property policies. This will depend on the wording of the individuals’ policy, specifically the water-damage exclusion, coverage for burst pipes and/or backup of sewer and drains coverage.
Here are the MIA’s official guidelines concerning this incident:
• People who have flood insurance can file under their flood policy
• People who don’t have flood insurance should file a claim with their property insurer and get any denial in writing; and
• The MIA will handle any complaints they get and look at the specifics at that time.
Floods can happen anywhere and everyone is at risk, as demonstrated by the Dundalk water-main break. This is a perfect example of why even if you don’t live near the water you still need a Flood Insurance Policy!