Water damage is a major risk homeowners face. So, does insurance cover water damage? Insurance companies do cover any water damage that occurs suddenly and accidentally. For example, if your water heater bursts and damages your walls or if an upstairs pipe breaks and damages the ceiling below it, your insurance company may help pay for repairs. Read on for more information about water damage insurance claims and the answer to the question: does insurance cover water damage?

Does Insurance Cover Water Damage?
Does Insurance Cover Water Damage?

Types Of Homeowners Insurance Claims For Water Damage

Homeowners' insurance coverage for water damage generally falls under two categories: dwelling coverage and personal property damage. Dwelling coverage will pay for repairs for any water damage to your property, for instance, destroyed drywall or damaged ceilings. Personal property damage insurance will compensate you or help pay for repairs to personal items that get damaged by a covered risk. For example, if water from a burst pipe damages your furniture. Do remember that the insurance companies will not pay for repairs if the amount is less than the deductible.

Does Homeowners Insurance Cover Water Leaks?

Home insurance policies do cover water damage from sudden and accidental leaks. But if your property gets damaged from an ongoing maintenance issue like a leaking pipe, your home insurance policy will probably not pay for repairs. This is because the damage could have been avoided if the water leak were fixed.

Does Insurance Cover Water Damage? Types Of Water Damage Not Covered

Not all types of water damage are covered by home insurance policies. As discussed above, any damage that resolves from unresolved maintenance issues will not be covered. Home insurance companies also tend not to cover damage caused by water backup from an outside sewer or drain. It may be beneficial to add water backup coverage to your policy if your property is at risk of this kind of damage.

Something else not covered by home insurance policies is repairs or replacements of the source of water damage. For example, if your washing machine malfunctions and causes water to flood your apartment, your policy covers repairs to your floor and walls but not to your washing machine.

Flood water damage is also not covered by any standard home insurance policy. Floods are considered natural disasters or acts of God which is why home insurance policies don’t cover them. Flood damage can be caused by overflowing groundwater, rainstorms, or overflowing of water bodies such as rivers, ponds, lakes, and oceans. Such risks are some of the things one should consider before buying a home. If you feel that you may be at risk of these types of damage, it is advisable to pay for a separate flood insurance policy.

Does Insurance Cover Water Damage?
Does Insurance Cover Water Damage?

Does Homeowner Insurance Cover Water Damage?

Yes, homeowner insurance policies do provide water damage cover for sudden and accidental types of water damage. However, the company will only pay for damages or repairs if they exceed your deductible. The insurance payout will also be only up to the limit for your type of coverage. To avoid disappointment and confusion, it is best to ask your insurance agent what exactly is covered by your policy. You should also check with your agent if there are any additional types of home insurance policies that will be suitable for you and your property.

For more information on homeownership and property maintenance, do read the rest of our blog.