Insurance will often cover this type of water overflow damage if it is sudden and incidental. In all of these internal basement leaking situations, insurance companies will try to determine whether the leak was caused by malfunction or negligence on the homeowner's part.
External water sources are almost never covered by average home insurance. And even flood insurance doesn't cover every basement leak. If insurance classifies your water intrusion as groundwater, you can expect them not to cover it.
Basement waterproofing costs $5,213 on average, and most homeowners pay somewhere between $2,459 and $8,181 depending on the waterproofing method, the extent of the issue, and the size of the home.
According to some water damage studies, over 98% of all homes with basements will experience some kind of water damage. Even a minor leak will raise your water bill by 10%. A properly waterproofed basement can be a great selling point for potential buyers and typically offers a return on investment of about 30%.
Basement Classification
The NFIP defines a basement as any area of a building with a floor that is below ground level on all sides.
Generally, foundation cracks or settling aren't covered by your homeowners policy. Your home's foundation is protected under your policy's dwelling coverage, but only for certain perils/events.
Regarding finished basements, home insurance policies generally cover structural damage and perils such as fire, smoke damage, vandalism, and water damage. However, reviewing your specific policy is important to fully understand the extent of coverage and any exclusions that may apply.
Interior basement waterproofing involves waterproofing basement walls from the inside. This way, the water that leaks into the basement is re-routed, before it can come in, out and away from your home. It is an effective waterproofing method and a much less offensive alternative to exterior waterproofing.
The cement-based coating gives it a rigid layer and is most effective for homes with stable temperatures and simple roof layouts. This approach is one of the most economical options available as it helps you reduce repairs, replacements, and maintenance costs for years to come.
What Factors Affect Basement Waterproofing Costs? The total project cost depends on your home's location, the size of your basement, and how you waterproof it. Basement size: The larger your basement, the more materials and labor are needed for waterproofing.
In most cases, no. Basement waterproofing is considered a home repair, and thus isn't eligible for any kind of tax deduction when it's done to fix a leak or a crack.
Homeowners insurance generally does not cover maintenance issues or wear and tear. So, if a slab leak results when tree roots damage your plumbing, or from plumbing lines that are simply past their prime, a typical homeowners insurance will not pay for repairs.
Generally, waterproofing lasts 5-10 years but can extend to decades with proper maintenance. To ensure longevity: Regularly inspect and maintain the system. Discuss specific longevity expectations with your contractor.
Apply Flex Seal Products
Flex Shot and Flex Seal Liquid are great options for attacking a basement wall leak.
To waterproof your basement from the inside, apply a high-quality masonry waterproofing product to the interior walls. Once the coating dries, it creates a strong, watertight barrier that prevents water from penetrating the walls. This method effectively seals your basement against moisture infiltration.
Waterproofing your basement can increase/ recover the resale value of your home by up to 10-20%. This is because it makes your property more attractive to potential buyers and reduces the likelihood of future repair costs.
Negative-side waterproofing will not prevent the water from entering your substrate, but it will prevent water from entering the occupied space. In order to apply an “internal negative-side waterproofing system,” your internal surfaces must be able to accept your waterproofing treatment.
A standard homeowners insurance policy may cover water damage to your basement, depending on the source. For instance, if a burst pipe was the cause of the damage, your policy may pay to repair damage to your basement. However, if a flood causes damage to your basement, you likely won't be covered.
In the US, finishing a basement will give you a return of 70 to 75% of your investment. That means if you spend $10,000 on improvements, the value of your property will increase by about $7,000.
Remediation and removal of mold won't be covered by your homeowners insurance unless the mold resulted from a covered peril, and coverage is often limited.