The Texas freeze is upon us, causing panic. Many are still traumatized from the last winter storm of 2021, which left many without power. So, it's no secret that freeze damage can wreak havoc on homes and properties, but homeowners are often surprised to discover that their insurance policies may not cover all related damages. Understanding the exclusions that might apply to freeze damage claims is essential to ensure you're adequately protected.
Lack of Maintenance or Neglect
One of the most common exclusions is damage caused by the homeowner's failure to properly maintain the property. For example, if a pipe bursts due to unheated spaces or lack of insulation, an insurer may deny the claim on the grounds of negligence. Homeowners are typically required to take reasonable steps to prevent freeze damage, such as keeping the heat on during cold weather.
Vacant or Unoccupied Properties
Most insurance policies exclude freeze damage that occurs in vacant or unoccupied homes. If a property is left unoccupied for an extended period, such as during long vacations, and no precautions are taken (e.g., draining water systems or maintaining heat), the insurer may not cover the resulting damages.
Wear and Tear
Insurance policies generally do not cover freeze damage that results from long-term wear and tear or deterioration. For instance, if old or poorly maintained pipes burst during a freeze, the insurance company may argue that the damage was not directly caused by the freeze but rather by pre-existing conditions.
Secondary Damages Not Addressed Promptly
Another exclusion involves damages that worsen because of delays in addressing the issue. If a homeowner fails to mitigate the damage—for instance, by not turning off the water supply or failing to dry out the property—secondary damages like mold or structural rot may not be covered.
Outdoor Property and Landscaping
Damages to outdoor property, such as swimming pools, irrigation systems, and landscaping, are often excluded. These items are typically considered non-essential or uncovered unless a specific rider or endorsement is added to the policy.
Business-Related Uses
If freeze damage occurs to areas of a home used for business purposes, such as a home office or workshop, it may not be covered under a standard homeowners policy. A separate business insurance policy might be necessary.
Flood or Groundwater-Related Issues
Freeze damage that leads to flooding or involves groundwater intrusion is typically excluded from standard policies. A separate flood insurance policy would be required to cover those specific damages.
By understanding these exclusions, homeowners can take proactive steps to mitigate risks, review their policies, and ensure they have appropriate coverage for future freeze events.