Learn How Well Owners Can Protect Their Property From Groundwater Disaster

Learn How Well Owners Can Protect Their Property From Groundwater Disaster

groundwater insurance coverage

A groundwater disaster from ruptured water sources can cause devastating damages to buildings or property, contaminating septic systems, fresh water wells or leaving basements susceptible to floods. If you are the owner or operator of a groundwater well, you can obtain groundwater insurance coverage to pay for damages caused by a water source.

Distinguishing the Difference Between Floods and Groundwater Damages

A flood insurance policy may be obtained to protect a property in a flood zone from the damages caused by excess rainwater or rising water levels. In order for a damage to classify as a flood in insurance terms, the water must have risen above the ground to cause damage to property. If any of the following damages have occurred, then they may be caused by groundwater damage.

  • Burst pipes, foundations or water wells caused by groundwater pressure, expansion or sinkholes
  • Frozen groundwater that breaks foundations, pipes or water wells
  • Rising groundwater that spills inside foundations or contaminates water wells
  • Harmful bacteria, salt, chemical spills, barnyard runoff, pesticides or fertilizers which have contaminated groundwater sources and ultimately, septic systems or water wells

The owner or operator of a well must purchase groundwater insurance coverage to cover these types of damages since they are classified separately from flood damage. Additional types of insurance are offered to provide full coverage to businesses or operations which deal in the water production or collection industry.