How Droughts Can Affect Your Property & Insurance Coverage
When we think about natural disasters, droughts often don’t come to mind as immediately destructive as hurricanes, earthquakes, or wildfires. However, the effects of prolonged drought conditions can be far-reaching and have serious consequences for homeowners. From foundation issues to plumbing problems, droughts can weaken the structural integrity of homes and cause various types of damage. But what about your Home Insurance? Does your policy even cover drought-related damages? Let’s explore how droughts can affect properties, the role insurance plays, and what homeowners should know about their coverage.
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1. Foundation Damage & Structural Shifts
One of the most significant ways droughts affect homes is by damaging the foundation. Prolonged dry spells can cause soil to shrink, particularly in areas with expansive clay soil, which contracts when it lacks moisture. As the soil moves, it can lead to shifting foundations, cracking walls, misaligned doors and windows, and uneven floors.
Insurance Implications: Standard homeowners insurance policies generally don’t cover foundation issues caused by soil movement due to drought. These types of claims typically fall under the category of “earth movement,” which is usually excluded from basic home insurance policies. To protect against this type of damage, homeowners may need to purchase additional coverage, such as earthquake coverage or sinkhole insurance (if applicable in your State jurisdiction). In some cases, it might be possible to add a rider or endorsement specifically for foundation movement due to soil shrinkage.
What You Can Do:
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Check your Homeowner’s policy to see if it includes coverage for foundation damage and speak with your insurance professional about options to add coverage for soil movement or foundation issues.
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Perform regular maintenance around your foundation, ensuring proper drainage and irrigation to keep the soil around it stable.
2. Damage to Landscaping & Trees
Drought can cause significant damage to your landscaping, more than just including dead lawns, or shrubs. While this may not seem as severe as “structural damage,” landscaping provides important value to your home, both aesthetically and functionally. Dead trees, for example, could pose a safety risk if they fall, potentially damaging property or causing injuries.
Insurance Implications: Homeowners insurance typically does not cover damage to landscaping caused by drought. However, if a tree or limb weakened by drought falls and causes damage to your home or other structures on your property, your insurance may cover the damage under the “other structures” or “personal property” portion of your policy. Alternatively, injures caused by falling limbs, or branches should be covered under the Medical Payments and/or Liability insurance sections of your policy.
What You Can Do:
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Consider purchasing an additional rider or specialized landscaping insurance if you have valuable plants or trees on your property that could be at risk.
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Use drought-resistant plants and grasses in your landscaping to reduce the likelihood of damage during dry spells.
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Trim and maintain trees regularly to prevent branches from falling and remove dead or weakened trees promptly.
3. Plumbing & Water Supply Issues
During a drought, wells, water supplies, and plumbing systems can become strained. As groundwater levels drop, wells may run dry, requiring additional measures to access water. In addition, water restrictions can make it difficult to maintain a consistent water supply to the home. In some cases, water pressure may fluctuate, leading to issues with pipes and plumbing fixtures.
Insurance Implications: Most Homeowners Insurance policies do not cover damage to plumbing systems caused by drought or a lack of water. Water damage typically needs to be accidental or sudden, and slow issues caused by dry conditions usually don’t meet these criteria. If a well runs dry or there is a plumbing failure due to low water levels, the costs associated with repairs will likely be out-of-pocket for the homeowner.
What You Can Do:
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Install water-saving fixtures and appliances to reduce strain on your plumbing system.
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Contact your local insurance professional to research what insurance coverage options may be out there, if you rely on a well or septic system, especially in areas prone to drought or heavy downpours.
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Make sure your plumbing is regularly inspected to avoid leaks or burst pipes from fluctuations in water supply.
4. Increased Wildfire Risk
Drought conditions create ideal conditions for wildfires. Dry vegetation, high temperatures, and low humidity can cause wildfires to spread quickly, posing a serious risk to homes located in fire-prone areas. The risk of fire is particularly high in regions like California, Texas, but now many areas in the Northeast and Mid-West are suffering from random fires ablaze.
Insurance Implications: Standard Homeowners’ Insurance policies typically cover damage from fire, including wildfires. If your property is damaged or destroyed by a wildfire during a drought, your policy should provide compensation to repair or rebuild the structure. However, who wants to watch their home destroyed by wildfire and deal with the ordeal of rebuilding; therefore, check out these links for materials that may provide crucial tips in the event of a spreading wildfire.
What You Can Do:
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If you live in a wildfire-prone area, ensure that you are aware of the following research out there Protecting Your Property From Wildfires.
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Help improve your property’s fire-resistance by clearing dry brush, trees, and other combustible materials from around your property. Creating open space of “Fire breaks” can reduce the likelihood of fire spreading.
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Check out this link to my favorite TV show growing up “This Old House” that has some tips for How To Harden Your Home Against Wildfire.
5. Impact on Water Quality & Supply
In regions affected by drought, water sources can become contaminated or reduced in quality. If you rely on private wells or other non-municipal water systems, the water may become unsafe to drink or use due to lower levels of water or contamination from pollutants.
Insurance Implications: Water quality issues related to drought are usually not covered by standard Homeowners’ Insurance policies. If your well or private water system becomes contaminated, you may have to pay out of pocket for water testing, filtration, or system repairs.
What You Can Do:
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Consider installing water filtration systems or water storage options (like water tanks) in case of water quality issues.
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If you rely on a well, regular testing and maintenance are essential to ensure the safety of your water supply.
Conclusion: Navigating Droughts & Insurance Coverage
Droughts may not seem like an obvious threat to homes, but they can cause significant damage to structures, landscaping, and essential systems. When it comes to insurance, it’s important to understand what is and isn’t covered in the event of drought-related issues. While Homeowners’ Insurance typically covers fire damage, structural damage caused by fire or soil movement, and some limited landscaping claims, coverage for drought-related damage is often limited.
To make sure you’re adequately protected, it’s wise to review your policy, consult with your insurance professional, and consider additional coverage options if you live in an area prone to droughts. Taking proactive steps to manage your property, including foundation care, landscaping, and fire prevention, can help you minimize the potential risks and damages associated with droughts.
By understanding the connection between droughts, your home, and insurance, you’ll be better prepared to face these long-term environmental challenges.