We are very often asked whether damp is covered by community insurance. If we want to give a quick and direct answer, we must say that in some cases it is, and in others it is not.
What will determine whether community insurance covers damp?
- On the one hand, it will depend on the covers taken out in the policy.
- On the other hand, it will depend on the cause of the claim. We will discuss this below.
Water-Related Damage in Community Insurance
Community insurance policies are multi-risk policies. In other words, they cover several different risks. Water-related guarantees, especially as buildings grow older, are among the most frequently used. Put another way, they are among the covers with the highest claims frequency and severity.
The Cause of Damp in Community Policies
As mentioned at the start of the article, apart from whether the necessary guarantee has been included in the policy, the cause of the claim is key in determining whether the insurer will cover damp.
Damp and Water Damage
If damp appears on a wall, floor or ceiling of the building, the next step is to determine what caused it. This is usually the task of the plumber and/or the insurance loss adjuster. If the origin of the damp is found to be a broken pipe and the community policy includes water damage cover, then, in principle, the insurance may cover the damage related to that damp.
To keep the explanation simple, today we are not going to discuss deductibles, as this post explains them in more detail.
What Types of Damage Would Be Covered in the Previous Example?
Continuing with the previous example, if water damage cover has been taken out, the costs of locating and repairing the broken pipe may be included, together with repairing and painting the damp damage caused in common areas, such as the entrance hall. Through the liability guarantee for water damage, the insurer would also cover the damage caused “to third parties”, for example the ceiling of a neighbour’s living room.
However, if water damage cover and liability derived from water damage had not been included, none of the damage derived from that damp would have been covered.
Water Seepage in Community Insurance
We return to the concept of the cause of the claim. If damp originates from water seepage, it is necessary to check whether the policy covers it. We should review the particular conditions and the general conditions, or ask our insurance broker.
There are usually differences between policies, as some do not cover this type of claim. In other cases, the answer may differ depending on whether the seepage comes through the facade or through the roof.
Damp Caused by Rain, Wind, Hail, Flooding or Snow
Depending on the policy, damage caused by damp may be covered by the community policy if the intensity of the weather event exceeds certain thresholds defined in the general conditions.
Costs of Repairing the Cause
It is also very common for costs related to repairing the cause to be borne by the insured party, that is, the homeowners’ association, while the insurer, if there is cover, pays for the repair of the resulting damage. The insurer will normally first require an invoice proving that the cause has been repaired.
Condensation Damage
Damage caused by condensation damp is usually a common exclusion in community insurance.
In conclusion, damp damage may be covered by community insurance, depending on the factors explained above. If you need more information, at VIDA SR insurance brokerage we are at your disposal for anything you may need.