According to the United States Geological Survey, about 15% of US citizens rely on wells for their private water supply. These American homeowners carry the unique responsibility of maintaining their own well water pump system.
As such an important appliance, homeowners may be thinking about what might happen if their system fails. Does your homeowner’s insurance cover well pump damage? To put it vaguely, yes, home insurance will cover well pump repairs if the damage was done by a covered peril.
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Attention to detail pays off regarding what caused your well pump to need repairs in the first place. If your well pump is located inside of your house (for example in the basement) it will be covered by dwelling coverage of your home insurance. For some homes, the well pump is located outside and is covered by other structures coverage. The insurers can be strict on exactly what type of damage is covered for these structures, though.
You need to be aware of some policy loopholes and exceptions before submitting a claim for your well pump. In this blog, we’ll talk about what insurance will cover and what to be on the lookout for. Plus, we’ll discuss the possible coverage add-ons that may benefit you in the long run.
When well pump repair is covered
Typical insurance companies have a list of perils included for each policy. These are the risks that are covered by insurance policies. As it pertains to your well pump, these are the kinds of damages that will be covered by your homeowner’s insurance:
- Weather-related: Storm disasters (besides flooding and earth movement) are covered by insurance companies. This means that your well pump is protected from damage caused by rain, hail, wind, snow, and lightning. If your well pump is above ground and gets struck by lightning, it may be considered a covered loss or repair.
- Fire: Fire-related damage is a common claim made by insured homeowners. Property damage caused by fires had the highest payout between 2016 and 2020. If your well pump is damaged or irreparable due to a fire, you shouldn’t have to pay out of pocket.
- Vandalism: Malicious acts like vandalism are a covered peril on your homeowner’s insurance. This includes damage incurred from tampering, vandalism, or other malicious intent. The trick here is to be able to prove that the act was deliberately caused by someone else.
- Falling objects: If your well pump is damaged from a falling object, like a healthy tree or power line, then it will be covered by your policy. Keep note that in the case of a falling tree, the tree must be in good condition to be considered a covered peril. Decrepit or leaning trees might fall under a maintenance issue and won’t allow your well pump to be covered if it is struck.
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When well pump repair is not covered
Exceptions to standard homeowner’s insurance policies may keep your well pump repair claim from being approved. Home insurance policies do not cover certain perils. That said, if your well pump takes on damage due to any of these exceptions, you may be left paying for repairs yourself.
Standard homeowners insurance (such as HO-3 policy) won’t cover well pump damage associated with:
- Maintenance failure: Insurance companies expect you to take good care of your home and structures. As such, you need to keep up with the maintenance of your well pump. This includes applying repairs and replacements due to general wear and tear. If your well pump isn’t properly maintained, your claim will be denied.
- Earth movement: Shifting, sinking, shaking, or rising soil are considered earth movements by typical policies. Examples of these earth movements include earthquakes, landslides, lava flows, and more. Earth movement is a common exclusion in homeowners’ insurance policies.
- Flooding: Damage caused by excessive water flows is not covered by homeowner’s insurance. That means if your well pump is in your basement and your basement floods, you may be out of luck without flood insurance.
- Electric malfunctions: Well pumps run on electromagnetic machinery. Because of this, it may be inclined to face mechanical or electrical failure. Most insurance policies don’t protect homeowners from abnormal equipment failures caused by electrical faults.
Add-on coverages
When your standard homeowner’s insurance won’t protect your wallet from well pump repairs, additional coverages may be worth looking into. Supplemental policies will help safeguard your property and possessions from sudden dangers.
Equipment breakdown coverage
You may need a supplemental policy that covers electrical and mechanical malfunctions. This is where equipment breakdown coverage comes into play.
Broken items protected by equipment breakdown coverage include:
- Motors
- Engines
- Water pumps
- Transformers
- Cables
- Boilers
- Pressure equipment
- Solar panels
- Emergency generators
- Air conditioners
- Refrigeration systems
- And more!
Essentially, if you have heavy equipment in or on your home that relies on power, this add-on may be necessary. It will cover your well pump in the event of a power surge, mechanical breakdown, electrical short, or burnout.
Home warranty
Homeowners’ insurance policies are very specific about what they do and don’t cover. Some of these companies may not even have equipment breakdown coverage options available. In this case, a home warranty could provide you with the same kind of protection for your well pump.
A home warranty is much like an equipment breakdown addendum for your insurance policy. The difference here is, a home warranty is separate from your insurance. As a result, home warranties have their own set of limitations and specifications.
A home warranty covers the repairs and replacements of systems and appliances within your house. This includes items from kitchen appliances like your stove, to electrical systems like your interior electrical wiring. Your well pump is included here as well.
One of the biggest differences between a home warranty and an equipment breakdown coverage is that a home warranty will consider natural wear and tear. Conversely, it may not cover accidental damages as your equipment breakdown coverage will. In these cases, it may be worth it to have both!
Is your water not flowing because of a dry well?
In some cases you might think that your well pump is not working properly, but the real cause of the issue is your well going dry. Dry wells are different from regular wells because it means that the well is nearing its end and this is common for wells that rely on natural springs. There are a few options you have once the water starts running out. The most common option is to move the well to a different area on your property. You can also fill the ground with your own water supply. Both of these are expensive actions and the insurance company won’t insure you for either of them.
Dry wells could pose a serious problem if the well is your main source of water supply and your household is left dry. There are a few exceptions when an insurance company will cover you for a dry well relocation. Let’s say the well ran dry due to one of the named perils on your insurance policy. This could be an earthquake (which you purchased as an add-on) or a house fire. If this was the case, you could file a claim and get compensated for the well moving cost. Consult your insurance agent to find out whether well relocation is covered under your insurance policy.
Conclusion
A well pump is an essential household appliance for well water consumers. Without a properly functioning well pump, these households simply won’t have a water supply. As such an important piece of machinery, you need to make sure you’re covered in the event of a disaster.
The insurance company’s decision about whether to cover your well pump depends on the circumstances. If the pump was damaged by one of the perils in your policy (wind, vandalism, fire), then your standard policy will cover it.
You may not be able to receive compensation for a well pump replacement under certain circumstances. If the damage was due to lackluster maintenance, earth movement, or other risks, the well pump won’t be covered. In these cases, it helps to have additional coverage or extra policies to keep you from paying out of pocket for well pump expenses.