Illinois used to be considered relatively safe from natural disasters.
In recent years, however, the state has seen more hailstorms and extreme weather, which can cause flooding and other property damage.
We’ve compiled our extensive knowledge into this guide to help you understand your various payment options, including insurance and out-of-pocket.
Key Takeaways
- Insurance coverage has become more expensive and difficult to access in recent years due to increasingly common extreme weather events.
- If you have homeowners insurance, you can file a claim for compensation after water damage. If not, you may have to pay for repairs out of pocket.
- Regardless of how you pay for repairs, emergency mitigation should always be your first step. Contact ServiceMaster of Lake Shore at (312) 707-8597 for comprehensive services.
What Insurance Coverage Looks Like Today
In 2023, insurers reported losing money on coverage in 18 states – an increase from 12 states just five years earlier.
Additionally, insurers are now paying more in claims than they’re charging in premiums, and the losses only continue to get worse.
Because of this, many insurance companies are dropping customers throughout the US, including Illinois.
In fact, according to a recent congressional investigation report released in December 2024, the nonrenewal rate has tripled in more than 200 counties.
The Illinois customers who are still lucky enough to have insurance are paying more for it – premium prices have increased dramatically in recent years – going up 24% in 2023 alone.
Understanding Your Disaster Restoration Payment Options
In the aftermath of water damage, most people have two payment options:
Insurance and self-pay.
Here’s a comparison of both.
Self-Pay
Paying out of pocket for restoration costs can be a good option for some families.
This is especially true if the damage is less than your insurance deductible or if you want to avoid a potential premium hike.
Paying out of pocket also allows you to act quickly – without waiting for insurance approval.
Best For:
- Damage costs that fall below your insurance deductible
- Families who want to avoid possible premium increases
- Repairs that need to be done as quickly as possible (waiting for insurance approval can take weeks)
Pros:
- Repairs can be scheduled based on budget
- Full control over restoration decisions
Cons:
- Out-of-pocket expenses can be significant
- Requires managing the entire process yourself
- Risk of underestimating costs
Insurance Claims
Insurance claims are usually the best option for larger-scale damage that exceeds your deductible.
This option is also suitable for complex damage that will require extensive remediation and repairs.
Here at ServiceMaster of Lake Shore, we specialize in helping Chicago residents with their insurance claims, so you don’t have to navigate the process alone.
Best For:
- Extensive damage
- Households that can’t afford to pay for damage out of pocket
- Complex restoration projects
- People who want access to professional guidance and resources
Pros:
- Financial support for major repairs
- Saving time and resources
- More peace of mind and less hassle
- Access to expert resources for complex projects
- Structured restoration processes
- Comprehensive protection for large-scale damage
Cons:
- Possible premium increases
- Delays due to claim approval and payouts
- Risk of claim denial
- Extensive documentation requirements
Trust ServiceMaster of Lake Shore for Water Damage Repair Services in Chicago & Suburbs
At ServiceMaster of Lake Shore, we help property owners in the Chicago area recover from all types of water damage.
We provide expert guidance and reliable service to help you reclaim your home, business, or property as quickly as possible.
Whether you’re paying out of pocket or filing an insurance claim, we’re your go-to source for top-quality restoration.
Contact us today to learn more about our services or request an inspection: (312) 707-8597.
What should I do immediately after water damage occurs?
Regardless of your chosen payment option, the first priority after water damage is always emergency mitigation: stop the water, remove standing water, and dry and sanitize the area.
This prevents or minimizes issues like mold or structural damage, which can increase costs later.
After mitigation, you can focus on handling repairs and restoration.
If you can afford to pay for both of these things upfront, that’s great news.
If not, focus on mitigation first and tackle the rest down the road.
Contact a professional restoration company as quickly as possible since acting fast helps prevent further damage and minimize repair costs.
Does homeowners insurance usually cover water and flood damage?
Homeowners insurance usually covers water damage from issues like a burst pipe.
Unfortunately, it may not cover flood damage from natural disasters or similar events.
In these cases, you’ll need separate flood insurance through the National Flood Insurance Program or a private company.
What is the difference between fire insurance and homeowners insurance?
Homeowners insurance usually covers fire damage as part of its standard policy.
If you live in an area considered high-risk for fires, this coverage may be a separate policy or add-on for extra protection.
It often offers more coverage and higher claim limits for fire-related damage than regular homeowners insurance.
No Comments
Sorry, the comment form is closed at this time.