Homeowners insurance policies usually cover water damage caused by a sudden, accidental events. For example, if a pipe bursts, a toilet overflows, or a washer hose breaks, damaging your property, your home insurance policy will likely cover the associated repairs or replacements.
On the other hand, some insurers may limit water damage coverage, and a standard homeowners insurance policy won’t cover several types of water damage, including damage from neglect, wear, flooding, or water backups.
Here’s how your standard home insurance policy protects your property and belongings from water damage, when damage isn't covered, and what to do if you need additional coverage.
When does home insurance cover water damage?
Although policy details vary, a standard homeowners insurance policy typically covers accidental and sudden water damage. Often, this is water that comes from the top down. Examples of covered events may include:
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Leaking appliances (washers, dishwashers, etc.)
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Frozen or burst pipes and sprinklers
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Overflowing appliances (washers, dishwashers, etc.)
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Overflowing bathtubs, sinks, and toilets
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Sudden/unexpected roof leaks
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Water damage from a fire
Keep in mind that while your insurance will cover the damage caused by many of the situations above, it will not cover the cost of replacing the broken system or item that caused it.
For instance, if a covered plumbing issue leads to basement flooding or a collapsed ceiling, your insurance will pay to have those things repaired, but it won’t pay to fix the pipes, toilet, sink, etc. that caused the problem.
When does home insurance not cover water damage?
A homeowners insurance policy typically won’t cover water damage that results from:
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Long-term leaks caused by wear and tear or neglect
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Flooding or storm surges
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Sewer and sump pump backups
How does home insurance cover water damage?
After water damage, your homeowners insurance policy can provide financial protection in multiple ways:
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Dwelling (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.
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Other structures (Coverage B). This part of your policy, also referred to as Coverage B, comes into effect if another structure on your property, such as a detached garage, suffers water damage from a covered event.
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Personal property (Coverage C). If water damages the contents of your home, such as electronics, clothing, furniture, or art, Coverage C will help you replace or repair affected items.
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Loss of use (Coverage D). Also known as additional living expenses (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 peril.
Additional coverages to protect against water damage
You can enhance your homeowners insurance policy to protect against types of water damage that are commonly excluded by a standard homeowners insurance policy.
Primarily, you may want to consider the following:
Flood insurance
If you live in a flood zone or an area that may experience storm surge, consider getting a standalone flood policy or asking your insurer if it’s possible to add a flood insurance endorsement to your policy.
Note: If you have a mortgage or live in a property that received FEMA aid, you’ll likely be required to carry flood insurance.
Water backup insurance
Water backup insurance, often available as an insurance rider, provides coverage for damage to your property caused by water backups or overflows. It typically covers your home’s structure, as well as your personal belongings.
Ordinance or law
Ordinance or law coverage doesn’t directly cover water damage, but it can come in handy if you have to file a water damage claim. This type of coverage can help cover the cost to rebuild your home to meet current building codes or standards.
For instance, say you experience water damage due to a plumbing issue. During the repairs, the contractor discovers that your plumbing is outdated and does not meet local building codes. Your homeowners insurance won’t cover the cost to make those upgrades unless your policy includes ordinance or law coverage.