Does Homeowners Insurance Cover Water Damage?

It is important to Know Your Homeowner’s Policy and understand what is and is not covered. Many homeowner’s insurance policies have limited water damage coverage; usually, coverage of damage depends on the source of the water. Typically, you can expect coverage when an internal water source, such as a pipe, washer, water heater, or dishwasher, malfunction or break suddenly and unexpectedly, causing water to leak into the surrounding areas and damage the home.

Key Words and Exclusions
Internal, suddenly, and unexpectedly are key words here—they typically mean if the water damage was caused by an outside source or a known and unresolved maintenance issue, the resulting damage and repair costs are unlikely to be covered.

Examples of Excluded Outside Sources
This can include water intrusion coming from the following (but not limited to):
• Septic Tank
• Drain Backup
• Rainwater
• Flooding

Examples of Excluded Maintenance Issues
Known and unresolved maintenance issues can include a leaky or malfunctioning faucet that causes mold growth or nearby drywall damage. It may also extend to outdated plumbing material.

Other Exclusions
It is also common for select sources of water damage to be excluded from repair coverage. For example, if it was your washer, water heater, or other appliance that suddenly and unexpectedly caused flooding and water damage to your home, the replacing or repairing the appliance itself may not be covered by your homeowner’s insurance.

Additional Insurance Options For FULL Coverage
Water Backup Coverage: Extends water damage coverage to include damage caused by an outside drain, sewer, or septic.

Flood Insurance: Some carries have policy riders that allow minor extension of coverage for water damage caused by exterior flooding. There are also fully separate flood insurance policies provided by the National Flood Insurance Program to provide more complete flood insurance coverage.

In each scenario where your insurance approves coverage, you will still have only up to your coverage limit and your deductible to consider.

*These scenarios are based on the average result and may not apply to your situation or coverage. Please contact your insurance agent to learn more about how your coverage applies to your situation for a more accurate explanation of coverage.