How do I know if I have enough coverage in case I suffer a water damage loss?

Review your policy with a state-licensed insurance agent and make sure he goes over the coverages and exclusions specific to water damage claims. Insurance companies will hide certain exclusions or water damage limits of coverage within your insurance policy. Make sure you as if you have coverage damage and does it have a mold limit which in most states if there is coverage a standard HO3 will have a limit of $10,000 for mold unless you request a higher limit for your home to be included in your insurance policy. It is usually written in your insurance policy that you have a duty to mitigate after a water damage loss in order to attempt to stop further damages. This will require you to hire an expert if there is any type of moisture or water intrusion and that expert is usually a mitigation and remediation company. Do not sign anything with them unless you know what you are signing. Read the fine print and if you do not understand something it would be wise to ask an Attorney what you will be responsible for if the insurance company does not pay the mitigation and remediation company. Also, you want to check to make sure the company you hire has a state license if required and is insured with a general liability policy. 

Your best option to make sure this process goes smoothly is to hire a Public Adjuster or Private adjuster to help you navigate through the insurance process. They will by your advocate and take the claim from start to finish helping you fight the insurance company to make sure you are paid fairly in accordance with your policy language and within your state statutes pertaining to 1st party property claims.