Insurance claim tips for water damage in Illinois

General information, not legal or insurance advice. Your policy wording controls. Ask your agent.

Three different coverages, three different water sources

Illinois-specific: you're supposed to be told about backup coverage

Under the Illinois Insurance Code (215 ILCS 5/143.21d), homeowners insurers must give applicants information about coverage for sewer backup and sump pump overflow, including limits and cost. They must also send existing policyholders information about their current and available backup coverage at least 30 days before each renewal. Look for that notice in your renewal paperwork, and check whether your limit would cover a finished basement.

Flood insurance and basements

• NFIP flood insurance covers certain basement items: building equipment such as furnaces, water heaters, central air, sump pumps, electrical systems and foundation elements, plus cleanup. Contents coverage there is limited to items like washers, dryers and food freezers.
• It does not cover finished basement walls, floors and ceilings, or most personal belongings in a basement.
• New policies generally take effect after a 30-day waiting period, so buy before storm season, not during it.
• You don't have to be in a mapped floodplain to buy flood insurance. Check your flood zone on the FEMA Flood Map Service Center.

Filing the claim

1. Report the loss promptly to your agent or insurer.
2. Photograph damage before cleanup and make a detailed inventory with purchase dates and costs.
3. Make reasonable temporary repairs and keep receipts. Keep receipts for hotels and meals if you're displaced.
4. Get your adjuster's name and phone number, and ask for a copy of their estimate.
5. Keep damaged items, or clear photos of them, until the adjuster has documented them.

Public adjusters

You can hire a public adjuster to represent you on a complex claim. Illinois requires public adjusters to be licensed by the Department of Insurance. Verify the license and understand the fee before signing.

Avoiding repair scams

After big storms the Illinois Attorney General warns about repair scams. Be wary of door-to-door solicitors, demands for full payment up front or cash only, and unusually low bids. Get written estimates and a signed contract, and check references, licensing and insurance.

Buying a home on the North Shore?

Lake County's Stormwater Management Commission notes that Illinois requires home sellers to disclose information related to flooding or sewer backups. Read that disclosure closely and ask what protection has been installed.