Insurance Companies have been paying out millions of Dirhams over the last couple of years, and quite a bit of it is because of the weather. We have had huge problems with flooding, water damage, huge storms and even fire losses. Many insurance companies do not cover flood insurance. There is a really fine line when it comes to water damage. Whether it is covered under your policy or not, you should immediately remove everything you can to prevent more damage. You may be surprised to know that there is a good possibility that there is damage behind the walls that you cannot see. The walls need to be dried as soon as possible. If there is mould or mildew, it will just spread and that is when the health issues start. It is harder to notice as most homeowners now complete their basement like an another level and living space. It is not easy to see behind the wall board, ceiling tiles, etc. At one time, basements were uncompleted and all you could see was the cement walls and floors these days.
If you look at the hurricane that hit New Jersey last year, apart from the water and the winds itself, it looked like every single house was in the middle of a sand pit. The sand was in every crack and cranny in those houses. I would imagine it would be covered under their insurance. Damage like that, must have caused millions of Dirhams in repairs.
It would be interesting to follow a case through from the beginning to the end of the repairs. They don’t cover flooding, but most will pay for sewer backup damage. I am not sure if that means you have to give them water sample from the basement and have it tested. If it really smells like a sewer than I guess it would be covered under sewer backup. People are getting smarter, and it is no surprise to me that people have been told to make sure there is solid matter in the basement, so it will look like it was definitely sewer backup.
In severe cases, I would hope the insurance companies would cover all wind or water damage. It would not be the first time they have done it, but it is getting to the point where they are going to have to increase homeowner policies rates.
If you look at a policy which is insuring your home which is worth almost a million Dirhams, an AED 900 annual premium really is not that much to pay for you to pay.
The infrastructure of city water mains is a huge problem. If a good downpour of rain happens all at once, the road sewers cannot handle the volume and the water just floods over into people’s homes.
An additional problem is the scope of water damage. An example of this would be a sewer back up claim. While the contractors are in there fixing it, along comes another storm and the ground is still soft from the previous storm, so it is just going to back up again. If you have massive rain in an area where they have already been flooded, repairs are going to be ongoing until it can be repaired properly.