Does Homeowners Insurance Cover Water Damage? (It Depends)

The devastating effects of water damage can cause costly repairs. Most homeowners expect their homeowners insurance will cover water damage, but that isn’t always the case. A standard homeowners insurance policy may cover water damage, but it depends on where the water came from and how long it was there. 

Key Takeaways

• Homeowners insurance covers many causes of sudden, accidental water damage.
• Flood waters and water resulting from maintenance issues are examples of common exclusions.
• One of the main components of a successful water damage claim involves taking immediate measures to stop the source of water. 
• Homeowners should consider their deductible when filing a water damage claim.

Does Home Insurance Cover Water Damage?

Homeowners insurance covers water damage resulting from sudden, accidental causes of water, such as broken pipes. Other types of water damage, like damage from flood waters, are explicitly excluded, although you can purchase a separate flood insurance policy. 

Understanding what types of water damage are covered on your homeowners insurance can help you determine if added endorsements or separate policies are needed to reduce your risk of noncovered water damage. 

Asking about covered perils when getting insurance quotes may prevent confusion later. Less expensive homeowners insurance premiums are only valuable if they provide comprehensive coverage. 

Types of Water Damage Typically Covered by Homeowners Insurance

Homeowners insurance policies cover many types of water damage. The key to water damage coverage on homeowners insurance is that the water source must be sudden and accidental. Slow, undiscovered, or neglected water damage that leads to rot is not covered. 

Types of water damage typically covered by homeowners insurance include:

• Busted pipes
• Water entering through storm damage
• Sudden appliance leaks
• Water overflow (toilets, etc.)
• Water from emergency services 

For example, if your sprinkler line breaks and impacts the structure of your home, the damages may be covered by insurance, so long as it’s remediated quickly and the leak wasn’t the result of regular wear and tear. 

Other events that are typically covered are a refrigerator water line springing a leak, toilet overflow, or roof leaks during heavy rain from damaged shingles. Each of these water losses is the result of a sudden water event unrelated to rising groundwater. 

The appliance itself will not be covered for damage from an appliance malfunction, only the resulting damage. Check the terms of your appliance warranty for its terms and conditions. 

Even covered water events are subject to dwelling coverage and personal property coverage limits and deductibles. 

Types of Water Damage Not Typically Covered by Homeowners Insurance

Even though many water damage causes are covered, just as many, if not more, are typically not covered by homeowners insurance. 

Water damage coverage always depends on the source of the water. However, even when not covered by a standard homeowner policy, coverage may be available by endorsement or purchasing a separate policy type.

Causes of water damage typically not covered by homeowners insurance include:

• Flood
• Earthquake
• Lack of maintenance
• Sewer or drain backup
• Sump pump failure
• Deliberate acts
• Wear and tear

Let’s go back to the sprinkler example. If it’s found that the water damage from your sprinkler is the result of rusted-out lines or improper installation, your claim could be denied. 

Earthquake and water backup coverage may be available as a rider or endorsement to your home insurance policy to provide additional coverage. Flood insurance can be purchased as a stand-alone policy through the National Flood Insurance Program or private insurers. Water damage related to neglect or deliberate acts has no insurance coverage options. 

Common Water Damage Scenarios: Coverage Overview

Understanding the source of your water damage is necessary when determining whether your homeowners insurance policy will cover water damage or not.

Tips to Make a Successful Water Leak Insurance Claim

If your water damage is from a covered water source, you can contribute to a smoother claims process by taking a few steps and prevent further damage to your property.

1. Take measures to stop the source of water.

2. Contact your insurance company to start the claims process.

3. Document the damaged areas and personal property with photos and video.

4. Schedule inspections and estimates as needed.

5. Submit estimates to your adjuster for approval.

6. Contract a plumber or other reputable repair companies.

7. Complete final repairs of damaged items and submit documentation.

When water damage isn’t addressed quickly, it can not only impact the approval of your water damage claim and delay repairs, but it can also result in mold and further water damage. 

Learn more: Does Homeowners Insurance Cover Mold?

FAQ: Will Homeowners Insurance Cover Water Damage?

Why would a water damage claim be denied?

There are many reasons a water damage claim may be denied. A water damage claim could be denied because the source of water was not dealt with promptly to protect your property from water damage. It could also be denied because the damage is the result of rising groundwater (flood) and is excluded. Water damage can also be denied because of improper maintenance of appliances, gutters, ice dams, or other water sources. 

It can sometimes be difficult to determine what may or may not be a covered water loss on your home insurance. Talking with your insurance agent may help you clarify whether coverage will likely apply to a given water damage situation. 

Does homeowners insurance cover flooding?

Homeowners insurance doesn’t usually cover flooding. However, you can purchase an additional flood insurance policy to protect your home from flood damage. 

Will homeowners insurance cover hidden water damage?

Hidden water damage can be tricky for homeowners insurance claims. Typically, hidden water damage is an ongoing, unnoticed issue, which means it likely wouldn’t be covered by insurance. But, you should consult your insurance agent to find out if your hidden water damage would be covered or not. 

Does homeowners insurance cover water leaks under your foundation?

Like many other questions regarding water damage coverage for standard home insurance policies, whether homeowners cover water leaks under your foundation depends on the source of the water, the type of damage, and how long it was there. 

Does homeowners insurance cover rotting wood?

A standard homeowners policy does not cover rotting wood unless the rot results from sudden, accidental discharge of water from a covered water supply. Wood doesn’t usually rot unless it has had prolonged exposure to water, which is typically not covered. 

Whether or not rotting wood is covered by your homeowners, it is important to repair affected areas as quickly as possible to prevent mold damage and costly mold removal expenses. The same applies to wet drywall. Dry out or remove wet drywall as soon as possible to prevent the need for mold remediation. 

Should I file a home insurance claim for water damage?

Homeowners should keep a few things in mind when deciding whether to file a home insurance claim for water damage. Homeowners should determine whether water damage is from a typically covered water source. They should also consider the cost of repairs in relation to their deductible. If repairs don’t exceed their deductible, they may want to consider handling damages out-of-pocket. 

Article written by Shawnette Good. 

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.