Water damage can cause serious harm to your home, rapidly totaling thousands of dollars in damage and requiring months of reconstruction. You may think it won’t happen to you, but no matter where your home is located or how recently it was built, water damage is a very real possibility. The culprit can range from a clogged drain to a burst pipe, faulty dishwasher, roof leak or something else.
Water damage cost homeowners an average of $13,954 between 2018 to 2022, according to the Insurance Information Institute. Homeowners insurance can help defray some of these costs, but understanding your policy before an incident occurs and knowing what it does and does not cover is an important part of homeownership.
When does home insurance cover water damage?
So when does homeowners insurance cover water damage, exactly? It depends on what caused the water damage. Damage caused by a burst pipe is typically covered, as long as the damage is sudden and accidental, and the homeowner has taken proper steps to prevent issues. For example, if your pipe freezes and bursts, it’s likely the water damage is covered by homeowners insurance (minus your deductible). However, if you leave your home for several days and turn off the heat during freezing temperatures, your insurer could have cause to deny your claim.
How coverage applies gets even more complex, though. A major dishwasher leak could be covered — or not. It all depends on the maintenance you’ve performed up to that point. If you knew the dishwasher was having issues and didn’t deal with it, your insurer could argue that you were negligent and the water damage could have been prevented, which means your claim would be denied. It’s also important to review the “Duties in the Event of a Loss” section of your homeowners insurance policy to understand what to do to prevent further damage should a claim situation occur.
Note that flood damage is almost always excluded under a standard homeowners insurance policy. You’ll generally need a separate flood insurance policy for this type of coverage.
What type of water damage is covered by homeowners insurance?
HO-3 policies are the most common homeowners insurance policies on the market. They typically include open perils coverage for your dwelling and detached structures, meaning if your house or garage is damaged by water it will likely be covered — unless your policy specifically excludes that peril. Under the HO-3 policy form, personal property coverage usually accounts for 16 named perils. The peril has to be listed in your policy to be considered a covered claim.
While a homeowners policy covers water damage in many cases, it’s important to understand which scenarios are covered under your policy and scenarios in which your claim could be denied.
Learn more: What is a homeowners insurance peril and how does it work?
Storms
We usually first think of rainfall and flooding when we imagine water damage. So, does home insurance cover water damage from rain? If it’s storm damage, generally yes. But standard home insurance does not cover floods.
If a storm breaks a window and rain damages the furniture and sheetrock in your living room, your dwelling coverage will usually pay for the repairs to your walls and floor, subject to your deductible and limits. Likewise, your personal property coverage will usually cover your furniture.
Storm damage that is not covered
However, if your roof leaks while it is raining, resulting in damage to your furniture, your claim will likely be denied if the roof is old and shows signs of neglect. Claim adjusters can spot damage that has happened slowly over time and keeping up with standard household maintenance is part of being a homeowner. Damage from wear and tear or deteriorating property is a standard homeowners insurance exclusion.
Standard home insurance policies also don’t cover flood losses. Floods (along with earthquakes) are almost always specifically excluded from home insurance policies. So if those heavy rains lead to water pooling in your house, your standard policy won’t cover the damage. Homeowners can purchase flood insurance through the Federal Emergency Management Agency’s National Flood Insurance Program or select private insurers.
Appliances
In most cases, your dwelling coverage will pay to repair damage caused by an overflow of water from appliances, but only when the overflow occurs accidentally and suddenly. For instance, if a sock somehow blocks your washing machine’s water outflow hose and floods your laundry room, your dwelling coverage should cover the ensuing damage. If the water damages other items in the laundry room, like a dryer or cabinets, your personal property coverage should cover the losses.
Appliance damage that is not covered
However, your homeowners policy won’t cover water overflow from appliances if neglect leads to the problem. For instance, if you remove your washer’s drip pan, make a conscious decision not to replace it and water destroys your floor over a period of months, the insurer is unlikely to pay for the damage. Sump pump and sewer backups are also not covered, but you may be able to purchase an endorsement to add this coverage to your policy.
Leaking pipes
When a pipe suddenly springs a leak or breaks due to an accident, upon discovering the mess, you might wonder whether or not your homeowners insurance will cover the damage. Good news: if the cause of the damage was sudden and accidental, your insurance coverage should apply.
For instance, if you reach for a heavy iron skillet under your sink and crack a pipe while pulling it out of the cabinet, you should have a covered loss, and your claim would likely be honored. Under the same circumstances, your personal property coverage should pay to replace or repair items such as rugs. If damage to your cabinets occurs, your dwelling coverage should repair or replace them.
Pipe leak damage that is not covered
Any damages that occur because a home is not properly maintained will not usually be considered a covered peril. For instance, if slow-leaking pipes cause damage due to improper maintenance, the insurer will likely deny the claim. Mold, dry rot and leaks that result from neglected pipes and could have been avoided are not considered accidents.
Fires
In most cases, your dwelling and personal property coverage will pay for water damage resulting from extinguishing a fire. If a space heater causes a fire in your living room and the water used by firefighters damages sheetrock and flooring in adjacent rooms, you can likely file a claim for that damage.
Fire damage that is not covered
If negligence led to the fire starting, the insurer may not cover the fire or water damage from putting out the fire. This includes failing to complete recommended repairs. If you buy a new home and the inspector lets you know an oven hose needs to be replaced, any fire resulting from that hose won’t be covered if you don’t take action to try and fix it.
Does homeowners insurance cover water damage from rain?
We’ve already discussed some direct impacts of sewer backup above, but there’s another piece to consider. What if water from a sewer or outside drain backs up into your house after heavy rain?
Generally, water or sewer backup is not covered in a standard home insurance policy. However, most insurance companies will offer an optional sewer backup endorsement. Some insurance agents may recommend this coverage if your home has an older plumbing system, a basement or a living area below ground level.
Understanding water damage insurance claims
When water damage occurs, you need to take a few steps before you file a claim:
- Prevent additional damage by stopping water flow at the source. If a pipe bursts, shut off the water immediately.
- Make temporary repairs. If a storm breaks your living room window and incoming rain damages your furniture, cover the window with a piece of plastic sheeting to minimize the damage. In some cases, you may need to contact a contractor to make more extensive temporary repairs.
- Remove all wet and ruined items, but do not throw them away. You will need evidence of the damage when you file a claim.
- Remove excessive water. You may need to rent a water vac to remove standing water in some cases. Thoroughly dry affected areas to prevent mold.
- Move undamaged personal items to a safe place.
- Call the police and file a report if the damage was prompted by illegal activity.
How to file a water damage insurance claim
After you’ve taken steps to secure your belongings and prevent further damage, it’s time to start preparing to file an insurance claim:
- Take a detailed inventory of all damage to your home and belongings. Take photos or videos — closeup and wide-angle — of all affected structures and personal property.
- Collect receipts associated with the incident to include them in the claim. For example, if you purchase a tarp to cover a hole in the roof, you can include the expense in the homeowners claim.
- Contact your insurance carrier to file a claim. Claims filing varies by insurer. Some providers allow you to file claims online or using a mobile app, while others prefer you contact a claims center or agent.
- Complete all claims documents and file them within the allotted time. Include photos, receipts and videos with your claim.
- Keep all documentation. If the disaster renders your home uninhabitable, your policy includes loss of use coverage to help cover expenses such as temporary housing and meals. Keep all your receipts to include with your claim.
- Schedule an appointment with a claims adjuster. The adjuster will thoroughly inspect the damage to determine its cause and how much the insurance company will pay for your claim.
How to prevent water damage
Performing regular home maintenance is the best way to prevent water damage. Not only can preventative measures help you avoid the hassle and health risks associated with mold and rot, but they may also allow you to avoid filing claims and keep your insurance premiums low.
- Seal all windows inside and outside your home to prevent water seepage.
- Remove any trees with roots that may interfere with the underground aqueduct system.
- Angle the soil in any planting beds that border your house downward to prevent standing water and direct rainwater runoff away from the structure.
- Install gutter guards to prevent debris from blocking water flow. Remove debris from downspouts, and position them to divert water away from your house.
- Regularly inspect your roof for damaged or missing shingles. For newer roofs, hire a professional roof inspector every five years. Older roofs should be professionally inspected every one to two years.
- Check exposed pipes for signs of cracks or leaks. Repair or replace damaged pipes immediately.
- Inspect hoses that connect to appliances, such as refrigerators and washing machines. Replace worn-out and damaged hoses immediately.
- Seal showers and tubs to prevent water leakage.
- Install an emergency pressure release valve in your plumbing system if you live in a cold climate. This can prevent pipes from bursting during winter’s frigid temperatures.
- Know the location of your main water valve and shut it off when a problem arises.
- Shut off the water supply to refrigerators and washing machines before going on vacation.
- Pay close attention to your water bill for drastic increases in water use. Excessive water usage could indicate a potential problem in your plumbing system.
Frequently asked questions
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