Is My Home Protected Against Water Damage by Homeowners Insurance?

Before looking into whether water damage is covered under your homeowners insurance policy, it’s important to understand what homeowners insurance actually is. Simply stated, homeowners insurance is property insurance that covers losses and damages to the residence (the building itself) as well as the stuff inside your home (this includes your furniture, clothing, and personal belongings).

Under the homeowners insurance policy umbrella, there are two different types of coverage. Dwelling coverage helps pay for damage to the structure of your home, while personal property coverage helps pay for damage to your possessions.

In the case of water damage, one or both types of coverage may be involved. For instance, if a pipe bursts behind the wall in your kitchen, you might need to make repairs to the wall itself. If so, your dwelling coverage would help pay for those repairs. That same pipe burst may have damaged your kitchen cabinets and ruined the Oriental rug in the adjacent dining room. In that case, your personal property coverage would kick in and help repair or replace the destroyed items.

It’s important to keep in mind that most homeowners insurance policies have coverage limits and deductibles. You will want to discuss this with your homeowners insurance agent to make sure you carry an ample amount of coverage to protect your home and your assets in the event your house suffers some sort of water damage.

According to Forbes, most homeowners insurance policies cover water damage if the cause was sudden and accidental, but not if the damage was gradual or caused by neglect. Basically, that means if your water damage was caused by a pipe that burst or a dishwasher that sprung a leak, then you’re covered. On the other hand, if a bathroom faucet was dripping for months before you discovered water damage it is likely not covered. In this case, you were neglectful in your duties as a homeowner – and for that reason that type of water damage would not be not covered by your homeowners insurance.

Your homeowners insurance should cover water damage caused by:

• Accidental Leaks: This could include accidental appliance leaks from a malfunctioning washer to a leaky refrigerator. 
• Burst Pipes: Living in Arizona, burst pipes are not as big a concern as they are for folks living in colder climates where frigid temperatures can cause pipes to freeze. However, tree roots, house settling, even age, can cause pipes to crack and leak.
• Water Damage from a Fire: Your homeowners insurance will cover water damage caused by the water used to put out the fire, either from the firefighters’ hoses or a sprinkler system.
• Water damage from a Roof Leak: If a tree falls on your home during a storm and damages your roof, any water damage that may have caused should be covered. While damage as a result of an accident is covered by your homeowners insurance, water damage due to neglect is not. So, if you notice a stain on the ceiling that could be a sign of a roof leak, be sure to get it repaired as soon as possible.
• Water Damage from Acts of Nature: Homeowners insurance will cover damages due to heavy rains or hail. However, water damage from flooding is not covered.

The Insurance Information Institute breaks it all down quite simply, stating “water that comes from the top down—such as rainfall and burst sprinklers—is covered by a standard homeowners policy. Water that comes from the bottom up—such as an overflowing river—is covered by a separate flood insurance policy.”

As a homeowner, it’s important that you understand what is covered by your insurance policy as well as what is not. Not surprisingly, the list of causes of water damage excluded from coverage is just as long as the list of what is covered under your homeowners insurance policy.

Water damage is not covered when it is caused by:

• Neglect or Lack of Maintenance: If your home sustains water damage due to a leaking bathroom faucet that you did not fix, then you will have to pay for those repairs.
• Floods: Homeowners insurance does not cover any water damage due to flooding, regardless of the source of water. That includes flooding as a result of storms, over-saturated ground, and overflowing bodies of water. If you live in a flood zone, you can protect your home and possessions by purchasing a separate flood insurance policy through the National Flood Insurance Program.
•  Water Backup: Water damage as a result of a backup from an outside sewer or drain is not covered by traditional homeowners insurance. Similarly, water damage from a broken sump pump is also excluded.
• Pool Leaks: Water damage caused by a leak from a swimming pool is not covered by your insurance.
• Repair Costs: Last but not least, the cost to repair or replace the source of the water damage is not covered. That means that if your water damage was caused by a broken washing machine, your homeowners insurance policy should pay to replace the damaged floor caused by the gushing water, but it will not pay to repair or replace the washing machine itself.

Between broken appliances and leaky pipes, water damage is a common occurrence.For that reason, it is important that you know what to do if you discover water damage in your home. 

The first thing you should do is try your best to control the leak. This generally means turning off the water source either to the appliance or to the entire house. As long as it is safe to do so, you should also take pictures documenting the source and any damage it caused. Make minor repairs to prevent further damage. For instance, if your kitchen is flooded try using a wet-vac or towels to mop up the water to avoid further damage to the flooring and cabinetry. If throw rugs get drenched you can take them outside to air out and dry. You will also want to contact your homeowners insurance company right away. They will help you file a claim and can recommend a water damage restoration company if needed.

There are certain things you can do as a homeowner to help prevent the possibility of water damage. You should be performing regular maintenance on your home throughout the year. On a monthly basis check appliance hoses and plumbing fixtures for leaks and make sure windows and doors are properly sealed. It’s also a good idea to check the sprinkler system for possible leaks and gutters for blockage.

Coverage.com recommends you hire a professional plumber every other year to inspect your home’s plumbing system to make sure everything is in proper working order. The educational resource site on insurance also suggests scheduling a roof inspection every three years.

One final tip to protect your home from water damage – turn off the water supply when you go on vacation. If a pipe or appliance springs a leak, the damage will be minimized if there is no water supply to the house.

Water damage is a common and costly occurrence. Fortunately, your homeowners insurance policy will cover the costs to repair water damage providing it was sudden and accidental. After all, accidents happen. On the other hand, water damage caused by neglect is not covered by homeowners insurance. It’s up to you as a homeowner to make sure your home’s plumbing and appliances are well maintained.

Sources

• https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance
• https://www.forbes.com/advisor/homeowners-insurance/water-damage/
• https://www.iii.org/article/how-protect-your-home-water-damage#Water%20damage%20and%20insurance
• https://www.floodsmart.gov/
• https://www.coverage.com/insurance/home/water-damage/