Does home insurance cover water damage?

Water damage is one of the most common and expensive problems homeowners can face. From burst pipes and leaking appliances to flooded basements and roof leaks, water can quickly cause structural damage, ruin personal belongings, and lead to costly repairs.

Whether homeowners insurance covers water damage depends on how the damage occurred. Sudden, accidental events are often covered, while gradual damage, poor maintenance, or natural flooding are not.

What types of water damage are covered by standard home insurance?

Most standard homeowners insurance policies cover water damage when it is “sudden and accidental.” Insurance companies use this phrase to describe unexpected events that occur quickly and are not the result of ongoing neglect, wear and tear, or poor maintenance. In these cases, coverage generally applies to both the damage the water causes and the cost to repair or replace affected parts of your home and personal property, up to your policy limits.

Common examples of water damage that a home insurance policy typically covers include:

• Burst or frozen pipes

• Accidental leaks from plumbing systems, such as supply lines or interior pipes

• Water damage caused by a malfunctioning appliance, like a dishwasher or washing machine

• Overflow from a clogged sink, bathtub, or toilet

• Rain or snow entering the home due to sudden storm damage to the roof or walls

Many insurers limit covered water damage to $10,000. However, in most cases, this limit can be increased for an added cost.

What types of water damage are not covered by standard home insurance? 

Despite how common water-related problems are, many types of water damage are not covered by standard homeowners insurance. Insurers limit coverage to reduce losses from predictable, preventable, or widespread risks. That’s why your homeowners insurance policy excludes water damage from neglect, long-term exposure, and natural flooding.

Some common types of water damage that standard policies typically exclude are:

• Sewer or drain backups (unless coverage is added by endorsement)

• Flood damage from heavy rain, hurricanes, storm surge, or overflowing bodies of water

• Rising groundwater or surface water seepage

• Damage caused by aging plumbing systems or long-term pipe corrosion

• Mold or mildew from unresolved moisture or leaks

• Gradual leaks behind walls, under floors, from the slab foundation, or in ceilings

• Water damage caused by poor maintenance or homeowner neglect

• The cost to repair or replace the cause of the water damage

A simple way to think through if something is covered is to ask: could we have reasonably expected this to happen? If so, it is probably not covered.

It’s also important to understand the specifics of your policy and review exclusions with your insurance provider, because exclusions vary by insurer and policy type.

How does home insurance cover water damage? 

After water damage, your homeowners insurance policy can provide financial protection in multiple ways:

• Dwelling coverage (Coverage A): If the structure of your home, such as the walls, floors, or roof, is damaged by water, your dwelling coverage will pay for repairs or replacements. 

• Other structures coverage (Coverage B): This part of your policy comes into effect if another structure on your property, such as a detached garage, suffers water damage from a covered event.

• Personal property coverage (Coverage C): If covered water damage impacts your electronics, clothing, furniture, or art, Coverage C will help you replace or repair affected items.

• Additional living expenses coverage (Coverage D): Also known as ALE, this part of your policy can help cover the costs of temporary housing, meals, laundry services, and other essentials if your home is deemed uninhabitable due to a covered incident (called a peril). 

Additional or optional coverages to consider for water risk 

To fill gaps in a standard home insurance policy for risks that are otherwise not covered, homeowners can purchase add-ons (known as endorsements) or separate policies. These optional coverages can be especially important for homes in flood-prone areas, older properties, or homes with complex or aging plumbing systems.

Common optional coverages for water damage include:

• Flood insurance: Covers your home and personal property against water damage caused by rising water, storm surge, or overflowing bodies of water. If you live in a flood zone, have a federally-backed mortgage, or have received federal aid for your property, you may be required to buy a separate flood insurance policy.

• Water backup coverage: Water backup or sump pump overflow coverage is available as an endorsement. This coverage protects against damage caused by sewer backups, clogged drains, or sump pump malfunctions or failures.

• Ordinance or law coverage: This coverage helps pay for the additional costs associated with bringing your home up to current building standards and codes when making repairs that resulted from a covered loss.

• Equipment breakdown coverage: This may cover damage caused by sudden appliance or system failures, including water heaters, washing machines, and HVAC units.

How to file a water damage claim 

If you discover water damage in your home, act quickly and keep detailed records to make the claims process smoother and help maximize your payout.

Review your policy to understand the claims process, timelines, and deductible before filing your claim. Your homeowners deductible is the amount you are required to pay toward covered repairs before your insurance company pays its portion.

When you’re ready, here’s a step-by-step guide to file a water damage claim under your homeowners policy:

1. Ensure safety first. Turn off the electricity and water supply if needed to prevent further damage or injury.

2. Document the damage. Take photos and videos of affected areas, personal belongings, and structural damage to your home. Highlight damaged items in your home inventory or make a written list of damaged items, estimated values, and identifying marks, like serial numbers.

3. Contact your insurance company ASAP. Report the damage and provide documentation. Ask about required forms, timelines, and next steps.

4. Prevent further damage. Remove standing water, dry wet areas, and make temporary repairs, like covering a leaky roof, to prevent the problem from getting worse. Keep receipts for anything you buy to prevent damage.

5. Meet with your claims adjuster. Cooperate with your claims specialist, and schedule a time for them to come assess the damage. Stay in contact with them to provide any further documentation or answer any questions they may have.

6. Keep records of all communications and repairs. Note emails, phone calls, and estimates from contractors to support your claim.

7. Receive a settlement offer. Your insurance company will provide a settlement offer after assessing the damage and evaluating your documentation. The settlement offer will include the cost to repair or replace damaged items minus your policy deductible. Take the time to review it carefully, and ask your claims adjuster any questions before accepting the offer.

Tips to prevent water damage 

Preventing water damage is always more cost-effective than repairing it. Regular maintenance, inspections, and early detection — paired with technology like leak detectors — can save homeowners thousands of dollars in repair costs and personal property loss. 

Here are some common prevention strategies:

• Inspect and maintain plumbing systems regularly, including pipes, faucets, and water heaters.

• Clean gutters and downspouts to ensure proper water flow away from your home.

• Seal cracks in your foundation, basement walls, and around doors and windows.

• Install a sump pump and consider a battery backup system for areas prone to flooding.

• Use water leak detectors and smart monitoring systems to catch leaks early.

• Run appliances such as dishwashers, refrigerators, and washing machines while you’re home to make it easier to notice leaks early.

• Maintain roofing, flashing, and seals to prevent water intrusion from rain, snow, or ice.

• Insulate pipes and keep the heat on to prevent freezing in colder climates.

• Shut off the main water supply and hot water heater when going away for vacation.

• Know where your stop tap or stop valve is under your sinks or in your basement so you can quickly stop water flow.

• Monitor your water bill for any spikes in usage that could indicate leaks.

Frequently asked questions

Does homeowners insurance cover leaking pipes?

Coverage typically applies if the pipe bursts suddenly and causes immediate damage. Slowly leaking or corroded pipes are generally not covered, as they are considered maintenance issues.

Will homeowners insurance pay to replace the appliance that caused the water damage?

Standard homeowners insurance policies usually cover the damage caused by the appliance but not the replacement of the appliance itself. Some insurers offer endorsements that provide coverage for appliances.

Is flood damage covered by homeowners insurance?

No. Homeowners insurance usually does not cover flood damage, including rising water from rivers, lakes, or heavy rain. You’ll need a separate flood insurance policy to cover this type of water damage.

Is water backup or sump pump overflow covered?

Water backup from sewers or drains and sump pump overflow or failure is typically excluded from standard home insurance policies. Homeowners can usually add a backup of sewer and drains endorsement to cover these scenarios.

Does homeowners insurance cover mold resulting from water damage?

Mold coverage is usually limited. Your policy may cover mold resulting from water damage if the cause is a sudden, accidental leak, such as a burst pipe. Mold caused by long-term leaks or neglect is usually excluded, even if you didn’t know about the leak.