Does homeowners insurance cover water damage?

Understanding water damage insurance claims

Aside from wind and hail damage, the most common homeowners insurance claim stems from water damage. Determining whether you're covered for water damage usually depends on three key factors:

Policy type

It's important that you know exactly what type of water damage is covered by your homeowners insurance. For instance, sump pump and flood damage are both typically excluded from traditional homeowners insurance policies and may require a special endorsement or separate policy.

Source of damage

The phrase "consider the source" is particularly relevant when it comes to water damage. If the source of the damage comes from inside your home, such as a water leak from plumbing, a broken pipe or overflowing appliance, you'll likely be covered by your homeowners insurance, if the damage was sudden and accidental. Roof leaks that are not a result of wear and tear, damage from animals, or rot are generally covered by your homeowners insurance policy as well, but you typically won't be protected from water damage coming from outside sources like flooding. Learn more about how roof leaks are covered by home insurance.

Sudden and accidental vs. gradual

Most policies won't protect you against gradual damage — meaning "wear and tear." For example, if your bathroom sink has been leaking for several months, your homeowners insurance may not cover any resulting water damage or plumbing costs.

If frozen temperatures cause a pipe to burst and flood your home, you may be covered if it's considered a sudden and accidental incident. Generally, there are preventative measures you need to take for this to be covered.

When does homeowners insurance cover water damage?

The type of damage sustained determines which coverage is applied from your homeowners policy. Damage to the overall structure of your home may be covered by your dwelling coverage, or Coverage A.

If your belongings are damaged, repairing and/or replacing those items may be covered with your personal property coverage, also referred to as Coverage C. Keep in mind that personal property coverage includes sub-limits on certain items which caps the amount you could receive for that item type.

Homeowners insurance covers several kinds of common water damage, which may include:

• Sudden plumbing issues
• Appliance overflows
• Fire extinguisher/hose damage from fires
• A roof leak caused by a covered peril

What types of water damage aren't typically covered?

Water back-up from sewer or drain

Water damage from a sewer or drain back-up usually won't be covered on a standard policy. However, most insurers offer optional sewer and water back-up coverage that you can add to your policy for an additional premium.

Flooding

When water damage comes from flooding, it's typically not covered on a standard homeowners insurance policy. This type of damage may be covered by flood insurance from the National Flood Insurance Program or from private flood insurers. Consider flood insurance if you live in a higher risk flood zone or near any body of water or a steep hill prone to water overflow.

Repair or replacement of the source of the water damage

Let's say your dishwasher malfunctions and overflows. Your home insurance may cover the water damage caused by the mishap, but it typically won't cover the cost of repairing or replacing the dishwasher as homeowners insurance isn't intended to protect against wear and tear. However, a home warranty may cover the cost to repair or replace an appliance. Learn more about a home warranty vs. homeowners insurance.

Seepage

Seepage that occurs over a period of time may result in mold, which generally won't be covered by your homeowners policy. However, some states may require your insurer to provide coverage for damage from seepage in certain circumstances, such as a pipe inside a shower wall that is completely hidden and therefore unknown to the homeowner.

Negligence

Your water damage insurance claim can be denied if you've failed to perform proper maintenance. For instance, if a pipe freezes and bursts because you didn't properly heat your home, your claim may be denied.

What should you do if you experience water damage?

• Record the damage: Take videos and photos of the affected area and damaged belongings. Don't alter the scene or remove ruined items until an adjuster has completed their inspection.
• Prevent more damage: Take steps such as turning off the water, removing excess water, and moving undamaged valuables to avoid further harm.
• Take a home inventory: Make a detailed list of all damaged items, including their make, model, age, and cash value, whenever possible. Learn more about how to take a home inventory.

Frequently asked questions about home insurance and water damage

Does homeowners insurance cover water damage from rain?

Depending on how the water damage occurs, homeowners insurance may cover water damage from rain. Flooding typically won't be covered by standard homeowners insurance, even when it's the result of severe rain or extreme weather events. However, you may be covered for damage to your home's structure and personal property if rain enters the house due to a covered peril, like if a storm breaks a window allowing rain into your house and causing water damage.

Your policy's loss of use coverage may pay for you to live elsewhere while your home is being repaired due to water damage from a covered incident. Learn more about how homeowners insurance covers storm damage.

Does homeowners insurance cover mold?

Homeowners insurance won't typically cover mold removal or damage unless it was caused by a sudden or accidental incident.

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