When is water damage covered by insurance?
Although a standard home insurance policy does not cover flood damage, it can cover water damage caused by rain and sudden or accidental events inside your home. Water damage caused by covered perils, such as a windstorm, is generally covered by a home insurance policy. Below are examples of situations where insurance could likely help cover losses if water wreaks havoc in your home.
wind driven rain
If a weather system causes wind and heavy rain that damages your roof, your home insurance policy may cover the resulting water damage. And if the wind blows debris through a window, causing rain seepage and damaging your flooring, that damage will likely be covered as well.
Burst pipes
If water leaks or accumulates after a burst pipe, dwelling coverage would pay for home repairs, such as repairing your floors and walls. Personal property coverage would also cover damaged property, such as wet and damaged furniture or decorations. Older houses with outdated piping systems could be more susceptible to pipe breaks and leaks.
Mold
If your home insurance covers water damage resulting in mold growth, it may also cover mold remediation. Mold and mildew can develop from 24 to 48 hours after the damageyour policy may therefore cover removal if your pipes burst and mold begins to form in your basement.
However, your policy is unlikely to cover mold remediation due to outstanding maintenance issues or owner negligence. So your coverage won’t extend to repairs if your household sprinkler system accidentally goes off and water causes mold to grow in your baseboards over time.
Device malfunctions
When a water heater or washing machine hose breaks, it can damage drywall and flooring. Your home insurance may cover home repairs and the cost of replacing damaged property. However, your policy may not cover the repair of the broken device, which means you will have to pay out of pocket unless the item is covered by warranty.
Ice dams
An ice dam is when ice becomes a barrier on your roof and prevents water from draining properly. When water collects on a roof, it can damage shingles and cause roof leaks. Your home insurance coverage may extend to these damages.
When is water damage not covered by insurance?
The most common insurance exclusion is for water damage caused by outdoor flooding. Below, we’ve listed what you need to know about water damage not covered by home insurance.
Flood
In the insurance world, flooding means a rapid increase in water levels from outside the home. Flood damage coverage is not included in a standard home insurance policy. Instead, you must purchase separate flood insurance protection. If you live in a risk area, a flood insurance policy may be necessary, and you can obtain coverage through the National Flood Insurance Program (NFIP) or private insurers.
Even if you live in an area that is not regularly flooded, purchasing insurance can still provide you with protection. According to FEMA, 40% of NFIP complaints are deposited by people who do not live in an area with a high risk of flooding. And floodwaters just a few centimeters deep could cause up to $25,000 damage.
Water and sewer backups
Most standard home insurance policies do not automatically include coverage for water damage caused by sump pump failures or sewer backups. However, you can purchase back-up coverage as an additional policy endorsement to cover damages if a clog or back-up causes your home to flood.
Owner negligence
Another situation where insurance may not cover water damage is when the homeowner does not properly maintain their property. Suppose your roof needs to be replaced. If you suffer water damage from a roof leak, but your insurance company finds a
lack of maintenance contributed to the problem, it may not extend coverage.
Tips to prevent water damage in your home
Accidents happen and you can’t control the weather. But there are ways to prevent or minimize water damage to your home and your belongings. Here are some steps you can take:
- Inspect your home: Regularly check your roof for missing shingles and your windows for broken seals so you can plan repairs if needed. If you don’t feel comfortable checking your own roof and windows, contact a professional for help.
- Check your gutters: Clogged gutters can cause water to pool and flow to unwanted places. Removing clogs and debris can help the water drain properly.
- Waterproof your basement: Sealing the cracks in your basement could prevent water infiltration during heavy rains.
- Schedule routine maintenance: Performing routine maintenance on appliances, like your water heater, could help you anticipate leaks.
- Keep valuables up high: Although basements can be suitable for storage, try to store your valuables in areas less susceptible to water intrusion. Storing items (like Christmas ornaments) on shelves can reduce the risk of damage if your basement floods.
- Learn how to shut off your main water source: If your pipes break, turning off the water faucet can prevent a small problem from turning into a disaster. Knowing where the water shut-off valve is and teaching family members how to use it can help minimize water damage in the event of an accident.
How to File a Water Damage Claim
The home insurance claims process can vary depending on your provider and coverage. Here are the general steps for filing a water damage insurance claim:
- Contact your insurer: You can often contact your insurance company by calling their insurance claims line or by filing a claim online.
- Stop the water flow: If there is an active leak in your home, your insurer may ask you to turn off the water faucet or contact a plumber to seal the leak and minimize the damage.
- Record damage: Record damage to your home, including damage to your accommodation and personal effects. If you have receipts and purchase information for damaged items, compile those as well.
- Gather the evidence: Take photos and videos to show proof of damage and back up the statements you make in your claim.
- Follow up with the claims adjuster: Your adjuster may ask you for additional information to process your claim. Once your claim is approved, your provider will subtract your deductible from the payment and you will receive the remaining funds to cover repairs.
The essential
Repairing and restoring your home after water damage isn’t just about drying up puddles. When water comes into contact with materials and electronic devices, it can degrade or completely destroy your property.
THE best home insurance companies cover water damage from windstorms and accidents, but most policies exclude flood damage. Having separate flood insurance coverage isn’t always necessary, but can be a good idea if your the house is high risk or you live near a body of water.
Taylor Medina began blogging about her experiences earning a dollar in 2013 as a recent college graduate. Eventually, that passion turned into a career studying personal finance topics and demystifying them for people like her, the everyday consumer. When she’s not writing, you’ll find her searching for travel deals or trying (and often failing) a DIY project.
Tori Addison is a publisher who has been in the digital marketing industry for over five years. His experience includes communications and marketing work in the non-profit, government and academic sectors. A trained journalist, she began her career covering politics and current affairs in New York’s Hudson Valley. His work included coverage of local and state budgets, federal financial regulations, and health care legislation.