Does Home Insurance Cover Water Damage?

Homeowners insurance covers some types of water damage that results from a covered peril. But the damage must be accidental and sudden.

Daria Kelly Uhlig
Daria Kelly Uhlig
  • Licensed Realtor with 10+ years in personal finance content

  • Contributor to Nasdaq and USA Today

Daria is a licensed Realtor and resort property manager specializing in personal finance, real estate, and insurance topics. In her spare time, she practices photography.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Updated June 7, 2024

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Water damage is the third-most common cause of homeowners insurance claims, after fire and lighting, or wind and hail. Home insurance policies cover many sudden, accidental causes of water damage — but not damage from floods or earthquakes.

Knowing what your home insurance does (and doesn’t) cover is key to ensuring you have the right level of protection for your needs.[1]

Types of water damage home insurance covers

Home insurance doesn’t cover flood damage or damage from sewage, drain, or sump-pump backups. But most policies cover other types of water damage. Standard home insurance policies provide coverage for at least 16 different perils.

Some types of damage that can result from those perils include:[2]

  • Damage from heavy rain leaking through roof: Homeowners insurance covers hail damage as well as damage from the weight of ice, snow, and sleet, and damage from falling objects.

  • Damage from a washing machine that overflows: Homeowners insurance covers plumbing, heating, air conditioning, fire sprinkler systems, and household appliances that suddenly discharge water or steam, or that overflow.

  • Damage from a cracked hot water heater: Insurance covers hot-water heaters, air conditioners, and fire sprinkler systems that suddenly crack, break apart, or burn.

  • Damage from freezing: Insurance typically covers damage from plumbing, heating, air conditioning, or fire sprinkler systems that freeze and dispel water.

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Does insurance cover mold from water damage?

Your insurance may cover mold if it resulted from a covered peril. For example, your insurance might cover mold that grew because of a burst pipe or leaking refrigerator. But your homeowners insurance won’t cover mold from a slow leak.

Types of water damage home insurance doesn’t cover

Home insurance covers water damage, provided the damage is sudden, accidental, and caused by a covered peril. But you’ll find that most standard policies don’t typically cover water damage from the following perils:

  • illustration card https://a.storyblok.com/f/162273/150x150/f4287230a5/climate-change-96x96-blue_013-flood.svg

    Flooding

    Homeowners policies don’t cover flooding. But you may be able to purchase additional coverage if your house is in a flood zone.

  • illustration card https://a.storyblok.com/f/162273/150x150/8459918154/renewable-energy-96x96-yellow_013-faucet.svg

    Water backup

    Homeowners insurance policies specifically exclude damage from backed-up sewers, drains, and sump pumps. But you may be able to purchase optional sewage backup coverage.

  • illustration card https://a.storyblok.com/f/162273/150x150/ef76aca096/house-rental-96x96-green_017-maintenance.svg

    Deferred maintenance

    Damage from a long-standing leak, a roof in poor condition, or an appliance long in need of repair isn’t covered.

  • illustration card https://a.storyblok.com/f/162273/150x150/0194b78427/weather-96x96-orange_043-flood.svg

    Water seepage

    Insurance companies consider water seepage from the ground into your basement or crawl space as a maintenance issue, so they generally won’t cover this.

  • illustration card https://a.storyblok.com/f/162273/150x150/39020b8d21/renewable-energy-96x96-green_001-renewable-energy.svg

    Pipes that froze and burst when the heat was turned off

    Home insurance companies usually require that you keep your home minimally heated and turn off the water supply when the home is going to be vacant.[3]

  • illustration card https://a.storyblok.com/f/162273/150x150/9775a33e0d/weather-96x96-yellow_030-snowflake.svg

    Pool damage due to freezing

    Insurance doesn’t cover water damage to a pool that you haven’t winterized.

  • illustration card https://a.storyblok.com/f/162273/150x150/1b1f6a7b45/weather-96x96-blue_046-sea-level.svg

    Water damage from mudflow

    Insurance companies treat mudflow as a type of flooding, so standard homeowners insurance policies don’t cover it.[4]

  • illustration card https://a.storyblok.com/f/162273/150x150/3322cac4f0/recovery-and-repair-96x96-orange_006-air-conditioner.svg

    Appliance repair

    Even if insurance covers damage from your faulty appliance, it won’t cover repairs to the appliance itself.

Does home insurance cover floods?

Home insurance doesn’t cover floods. But you can get coverage through an insurance company that offers private flood insurance or through the National Flood Insurance Program (NFIP).

Flood damage vs. water damage: What’s the difference?

Water damage stems from a sudden event that causes water to release inside your home. Flood damage, on the other hand, originates outside your home.

What is flood insurance?

Flood insurance is a type of optional home insurance that covers your home’s structure and its contents in the event of damage from a flood.

Building coverage includes the structure of your home, its systems, major appliances, and anything permanently installed or attached to a floor, wall, or ceiling. If you have a detached garage, that’s covered as well. Building coverage has a $250,000 limit.

Contents coverage, which you purchase separately, is for your personal property. It includes appliances and heating and air equipment not permanently installed, clothing, area rugs, furniture, clothing, electronics, window treatments, and other belongings. A $100,000 coverage limit applies to most personal property, but coverage is limited to $2,500 for expensive artwork and other high-value items.[5]

Who needs flood insurance?

If you live in a high-risk flood area and you financed your home with a government-backed mortgage loan — from Veterans Affairs (VA), Federal Housing Authority (FHA), or United States Department of Agriculture (USDA), for example — your lender will require you to have flood insurance. Outside of those high-risk areas, lenders might require flood insurance, but there’s no federal requirement.

Good to Know

If you’ve ever received federal disaster assistance, you’ll have to have flood insurance to qualify for natural disaster relief again in the future.

What to do if you have water damage

If you see signs of a water leak or other water damage in your home, quick action can help you protect your home and your personal belongings.

  1. Find the source. Trace the source of the water and turn off its water supply. If you’re unsure how, shut off your water main valve to cut water to the house.

  2. Protect your belongings. Move furniture and other items to a dry part of your home. Also, unplug electronics if you can do so safely — or, if you can reach it without standing in water, turn off the power at your breaker box.

  3. Document the damage. Make a list of your damaged items. It’s also a good idea to take photos and do a video walkthrough of the affected areas of your home.

  4. Contact your insurer. If the damage is serious, consider calling your insurance company to report it or starting a claim online.

  5. Repair the damage. Depending on the extent of the damage, repairs might consist of having carpets cleaned, getting plumbing or appliance repairs, or even calling in professional water restoration services.

  6. Check for mold. Suspect mold if you have a musty odor or notice staining on walls or ceilings. If in doubt, contact a remediation company to test and remove any mold it finds.

How to file a water damage claim

Start your homeowners insurance claim as soon as you can to avoid delays in receiving your reimbursement.

  1. Document the damage. If you haven’t already made a list of damaged items, photographed them, and filmed a walkthrough, do that before calling the insurance company.

  2. Ensure your coverage includes it. Read through your policy to verify that you have coverage for the type of damage you experienced.

  3. File a claim. Call your insurance company or go to its website to file.

  4. Provide any information the insurer asks for. Your insurance company may ask for more details about the damage, including pictures.

  5. Cooperate with the insurance adjuster. Adjusters may need to inspect the damage in person, which could require you to be home or answer questions.

  6. Keep receipts. If you pay for any repairs out of pocket or cover the cost to replace property, be sure to hang onto any receipts. Depending on the nature of the claim, you could be eligible to recoup some cash.[6]

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How to prevent water damage

The best way to deal with water damage is to prevent it from happening with regular maintenance. The Insurance Information Institute offers the following tips for safeguarding your home and your belongings:[7]

  • Seal your basement against leaks.

  • Point downspouts away from your house.

  • Schedule a day each year to check hoses, valves, and faucets inside and outside your home.

  • Check bathroom fixtures periodically to make sure their seals are intact.

  • Mark your water main valve so it’s easy to find in an emergency.

  • If you live in a cold climate, consider talking with a plumber to find out if a pressure-release value might be beneficial.

  • Inspect your pipes every now and then to check for signs of deterioration.

  • Check your roof for damaged or missing shingles and soft spots in the wood below.

  • Keep the caulking around windows in good repair.

  • Keep gutters clean, or install gutter guards to keep water and ice from accumulating along your roof.

  • Pack seasonal items in plastic containers before storing them, and keep them off the floor.

Water damage FAQs

Water can cause catastrophic damage to your home, and insurance doesn’t always cover it. Here are some answers to commonly asked questions about water damage.

  • What types of water damage does home insurance typically cover?

    Home insurance covers most sudden, accidental water damage that occurs inside your home. Your insurance company would likely cover burst pipes and sudden leaks from a washer or ice maker, for example, as long as they weren’t the result of maintenance issues. Your policy won’t cover damage from flooding that originates outside your home.

  • Does home insurance cover floods?

    No. Homeowners insurance doesn’t cover floods. For flood coverage, you need private flood insurance or, more commonly, a policy from the NFIP.

  • What should you do if you find water damage in your home?

    First, try to find the source of the water and cut off its water supply. If that’s not possible, turn off the water at the water main.

    Evaluate and document the damage, and check if your homeowners insurance policy covers it. If it does, file a claim with your insurance company. If not, you’ll have to pay for repairs out of pocket.

  • Does home insurance cover pipe leaks and burst pipes?

    Yes. Your insurance covers leaks and burst pipes as long as they’re accidental and sudden. But insurance typically doesn’t cover long-standing issues and those arising from poor maintenance.

Sources

  1. Insurance Information Institute. "Facts + Statistics: Homeowners and renters insurance."
  2. Insurance Information Institute. "Which disasters are covered by homeowners insurance?."
  3. National Association of Insurance Commissioners. "Will My Homeowners Insurance Policy Cover Damage From a Burst Pipe?."
  4. Insurance Information Institute. "Insurance for landslides and mudflow."
  5. National Flood Insurance Program. "What is a Flood?."
  6. Insurance Information Institute. "How to file a homeowners claim."
  7. Insurance Information Institute. "How to protect your home from water damage."
Daria Kelly Uhlig
Daria Kelly Uhlig

Daria Uhlig is a freelance writer and editor with over a decade of experience creating personal finance content. Her work appears on USA Today, Nasdaq, MSN, Yahoo Finance, Fox Business, GOBankingRates and AOL. As a licensed Realtor and resort property manager, she specializes in real estate topics, including landlord, homeowners and renters insurance. In her spare time, Daria can be found photographing people and places on Maryland's Eastern Shore. Connect with her on LinkedIn.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

media logomedia logo

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