Plumbing insurance is very important to protect the investments you have made in your home and to ensure that your plumbing system remains in good working condition. The cost of your insurance policy will be determined by different rating factors such as your premium coverage requirements, risk exposure and past claims history. For instance, a new plumbing contractor with a record of only three previous claims would likely pay less for his or her insurance than an experienced plumber who has a complete claim history. Likewise, the cost of your insurance will also depend on whether or not you are insuring your entire house or just one bathroom. This is because your homeowner’s policy will generally cost more to insure a home with more units.
One factor that will impact your plumbing insurance policy price is the amount of liability that you choose to purchase. Liability insurances are designed to cover the cost of injury or property damage that you or a third party may sustain while using your home’s plumbing system. In most states, there is a limit on the amount of liability that can be applied to a particular plumber. As a new plumber, you should work to contact your state’s licensing board to determine exactly what the limit is for your profession.
Plumbing insurance does not usually cover flood damage to your home’s plumbing system. However, if you or one of your family members sustain injury or property damage as the result of water damage as a result of a ruptured water line, your homeowner’s policy should provide you with adequate coverage. If you are unsure whether or not your policy provides adequate coverage for water damage, you should contact your general liability insurance provider. The coverage limits will vary depending on your current health and age. Additionally, you should contact your state’s licensing board to determine what types of incidents are considered general liability in your state.
Home warranties cover the repair or replacement of parts of your home at no additional cost to you. While it’s true that most home warranties do not cover repairs to your central air conditioning system or other large items in your house, you may want to look into adding home warranty protection to your homeowner’s policy. When purchasing a home warranty from your plumber, you should request that the warranty include coverage for plumbing repairs. This way, if your plumbing system breaks down, you won’t have to pay out of pocket expenses to repair the damage. Furthermore, if you are unable to repair the damage yourself and your home is damaged due to water leakage, you may be eligible for additional replacement costs under your home warranty.
Plumbing contractors often offer their own plumbing insurance or will refer you to an appropriate general contractor. While you may need to pay a little more for this coverage, it may be worth it in the long run. As most plumbing contractors will tell you, paying for the insurance now rather than later can save you a lot of money should you experience any major problems with your pipes in the future.
While plumbing insurance is designed to protect your plumber business and your customers, it is also important to consider the legal and financial responsibilities of being a licensed professional. Plumbing regulations vary greatly in each state, even within the same city. In order to stay within the regulations of your area, you need to make sure you are familiar with the local laws before beginning work. You also need to make sure that you have the right amount of liability coverage (which varies from state to state). Once you have the right plumbing insurance, you will feel more secure about the type of work you do and your ability to continue operating as efficiently as possible.
