Burst pipes can lead to significant and costly water damage, affecting walls, floors, ceilings, and even personal belongings. Fortunately, a standard home insurance policy typically covers damage from burst pipes. However, coverage depends on your insurer, policy, and the specific event that caused the damage.
Understanding when home insurance typically covers pipes, when it may not, and how to reduce the risk of this type of damage can help you protect your home and budget.
When does home insurance cover burst pipes?
In most cases, home insurance covers burst pipes when the damage is sudden and accidental.
For example, if a pipe freezes and cracks during a cold snap, your policy will likely cover the resulting water damage as long as you took reasonable measures to prevent freezing. The same usually applies to a pipe that suddenly bursts due to pressure buildup or an unexpected failure.
How home insurance covers burst water pipes
When a burst pipe causes damage, it triggers various types of coverage within your policy, depending on the extent and type of the damage sustained. Here's a closer look at how each works.
Dwelling coverage (Coverage A)
This part of your policy is what covers the structure of your home. If a pipe bursts and damages your hardwood floors, ruins your drywall, or affects your ceiling, dwelling coverage kicks in to pay for the repairs, up to your policy limits. Your dwelling coverage will also cover damage to built-in fixtures, such as cabinets, and any necessary mold remediation.
Other structures coverage (Coverage B)
If a burst pipe damages a detached structure on your property, such as a garage or pool house, Coverage B can help cover the cost of repairs. Similar to dwelling coverage, this part of your insurance only pays for damage to the structural components, such as walls, ceilings, and built-in fixtures.
Property coverage (Coverage C)
If your belongings, such as furniture, carpet, or electronics, are damaged by a burst pipe, personal property coverage can help you cover the costs of repairs or replacements. In most cases, Coverage C claim payouts are based on the actual cash value (ACV) of the damaged items. This means that a claim payout will reflect the depreciated value of the item(s), not its current market price.
If you want additional coverage, you can enhance your policy with replacement cost coverage. With replacement cost coverage, your insurer will cover the cost to replace the item with a new one or one of similar value.
Loss of use coverage (Coverage D)
Also known as additional living expenses (ALE) coverage, loss of use coverage is part of a standard homeowners insurance policy. It helps cover temporary living expenses when your home becomes uninhabitable. If a burst pipe results in flooding in your bedrooms and forces you to leave your home, insurance can help cover the costs of hotel stays, meals, or even temporary rentals while repairs are underway.
When does home insurance not cover burst pipes?
A standard homeowners insurance may deny or reduce coverage if a burst pipe occurs under or due to the following circumstances:
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Leaks are long-term and exist due to wear and tear, neglect, or improper maintenance
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Freezing temperatures occurred, and no reasonable precautions were taken
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The home is abandoned or under construction
It’s also important to note that even if your home insurance covers the damage caused by a broken pipe, it won’t cover the cost of repairing or replacing the pipe.
How to file a claim for water damage from burst pipes
If you experience a burst pipe, quick action can make a significant difference, not just in limiting the damage but also in ensuring your claim is approved. Here are steps you can take:
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Stop the flow of water. If possible and safe to do so, shut off the water supply to stop the flow of water and reduce the resulting damage.
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Document the damage. Take photos or video of the damage. It’s also helpful to make a list of any personal property that was damaged.
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Contact your insurance company to file a claim. You can typically file a claim by phone or by logging into your insurer’s claims portal or mobile app. Be prepared to provide information about the date, time, and location of the event and the policy number.
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Make emergency repairs and keep receipts. When possible, make temporary or emergency repairs to reduce further damage. Keep any associated receipts and provide them to your insurer. Depending on your policy, the extent of the damage, and the nature of the repairs, the insurer may reimburse your expenses.
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Meet with your claims specialist or adjuster. Your insurer will likely assign a claims specialist or adjustor to your case. The claims specialist may schedule a visit to your home to assess the damage.
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Complete the repairs. If your claim is approved, use the funds to complete repairs. In some cases, your insurer will provide a list of preferred or partner contractors or repair professionals. If not, always choose one who is certified and licensed to complete the work.
Learn more: How to file a home insurance claim
How to prevent burst pipes
While home insurance can help cover the costs, preventing burst pipes in the first place is always the better option. Here are some tips to prevent burst pipes:
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Check for signs of wear or corrosion on pipes, especially in older homes.
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Fix any small leaks right away, as they can be warning signs of a larger issue.
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Insulate exposed pipes to prevent freezing.
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Keep your home heated to at least 55°F if you live in an area where temperatures dip below freezing.
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If leaving your home for an extended period, consider shutting off the water supply.
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Install leak detection devices.
Even small steps towards prevention can save you from a big insurance headache down the road.