Does Renters Insurance Cover Water Damage?

Water damage is one of the most common and most expensive insurance claims for renters.^[1] It can destroy your personal belongings and cause issues like rot, mold, and mildew.

Standard renters insurance policies cover water damage that’s sudden and accidental, like a frozen pipe bursting. But renters insurance doesn’t cover water damage in certain instances, including flooding.

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When renters insurance covers water damage

The personal property section of your renters insurance policy covers water damage. Your insurer will pay to replace your belongings if a covered incident causes water damage.

Because tenants don’t own their apartments, renters insurance doesn’t cover structural water damage. For example, if water damages the walls or floors, your landlord’s dwelling insurance policy will cover it.^[2] Your landlord’s policy also covers damage to appliances they own, like a water heater that explodes.

Here are a few examples of situations where renters insurance covers water damage:

• 

  A pipe bursts under a sink

  If a pipe bursts under a sink in your apartment and damages the contents inside a cabinet, renters insurance will pay to replace the items.

• 

  A windstorm causes a roof leak

  Renters insurance will cover water damage from a roof leak if a strong windstorm dislodges several shingles.

• 

  Your window air conditioning unit leaks

  If your window air conditioning unit leaks and mold grows on the rug underneath, renters insurance can pay to replace the rug.

• 

  The hose for your washing machine breaks

  Renters insurance will cover damaged personal belongings if the hose from your washing machine breaks and leaks water in your apartment.

• 

  You can’t live in your rental property temporarily

  Renters policies also include loss of use coverage, which pays for additional living expenses if you have to temporarily relocate while your apartment receives repairs.

When renters insurance doesn’t cover water damage

Renters insurance only covers sudden and accidental water damage. It won’t cover water damage in the following scenarios:

• Water damage from a flood: Standard renters insurance policies don’t cover water damage from flooding. You’ll need to purchase a separate flood insurance policy to get coverage for flood damage.

• Gradual water damage: A renters policy won’t cover gradual water damage, like a roof leak that’s been getting worse for a few months.

• Water damage caused by negligence: Your policy won’t cover water damage resulting from negligence or destructive acts. For example, if you leave a window open and a heavy rainstorm results in damage to your items, you’ll have to pay for the loss out of pocket.

• Water damage caused by water backing up: Renters insurance doesn’t cover water damage from water that backs up into your apartment through a drain or sewer pipe. If you want coverage for these perils, many insurers sell a separate water backup endorsement.^[3]

Signs of water damage

It’s important to recognize the signs of water damage as a renter. If you find suspected water damage in your unit, you should contact your landlord right away.

Here are several signs that water damage is present:

• Water stains: Water stains on the ceiling and walls can show up as discoloration and is often a sign of water damage.

• Smell of mold or mildew: If you smell mold or mildew in your living space, it’s possible that you’re dealing with water damage. 

• Soft spots: Water damage can create soft spots on the ceiling or walls. When water seeps into drywall, a portion of your wall may feel weak or spongy.

• Sagging areas: Any areas of sagging — especially on the ceiling — can indicate water damage.

• Paint damage: Water damage can show up as bubbling or cracking paint.

• Higher water bill: A higher-than-normal water bill could be a sign of hidden water damage inside your apartment.

Can a tenant be responsible for water damage?

Yes. A tenant can be responsible for water damage in their apartment. For example, imagine you forgot you turned on the bathtub and left it running, causing it to overflow and cause extensive damage in the unit below yours. In this case, you’re responsible for the damage. The liability portion of your renters insurance policy could help pay to repair the unit below.

How much does renters insurance cover for items damaged by water?

The amount that your renters insurance policy will pay for water-damaged items depends on your policy limit. For instance, if you have a $15,000 personal property coverage limit, your insurer would pay up to $15,000 (minus your deductible) for a water damage claim.

How much your renters insurance policy will pay also depends on whether you have actual cash value or replacement cost value coverage.^[4]

Actual cash value

An actual cash value (ACV) policy covers personal property claims with the item’s depreciation factored into the payout. For example, imagine your apartment has a sudden roof leak and water drips all over a sofa that you purchased five years ago for $3,000. With an ACV policy, you might only receive $1,500 to replace the sofa because it has depreciated.

Replacement cost value

A replacement cost value (RCV) policy doesn’t factor depreciation into your claim payouts. Using the same example from above, an RCV policy would give you the full $3,000 to replace your water-damaged sofa because your insurer won’t subtract the couch’s depreciation from your settlement. Although RCV policies provide larger claim payouts, they typically have higher premiums.

How to file a renters insurance claim for water damage 

Here are the general steps you should follow to file a renters insurance claim for water damage:

1. Document the damage. Take photos and videos of the water damage inside your apartment. You should also write down the damaged items, along with their original costs. If you have receipts for the damaged items, compile those and submit them with your claim paperwork.

2. Contact your insurance company. Notify your insurance company and start the claim process. You’ll need to submit some claim documents and share the photos you took. Many insurance companies allow you to file a claim online or through a mobile app, but you can call the insurer’s claim department if you prefer.

3. Notify your landlord, if needed. Depending on the situation, you might need to report the incident to your landlord. For example, if your washing machine hose breaks, your landlord will be responsible for replacing the hose.

4. Make temporary repairs. If you have water damage inside your apartment, it’s a good idea to make temporary repairs to avoid further issues. For instance, if your roof is leaking, you can use a tarp to cover the leaking area. If water has leaked through a broken window, you can seal the window with a board or use a window repair kit until you can have it permanently repaired.

5. Wait for your reimbursement. Your insurance company will investigate the claim and determine the cost of replacing your items. Once your insurer approves the claim, you’ll receive a reimbursement check.

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5 ways to protect your rental from water damage

Water damage is often unexpected, but you can take several steps to help prevent water damage from happening. Here are some tips for protecting your unit from water damage:

• Check pipes for leaks. It’s a good idea to check the pipes routinely for signs of leaking. If you notice any leaks, let your landlord know right away.

• Inspect appliance water lines. Habitually inspect your appliance water lines — especially for the washing machine and refrigerator.

• Protect pipes in the winter. If you live in an area that experiences harsh winters, take precautions to protect your pipes on cold days. Keeping your home at a consistent temperature and letting faucets trickle can prevent pipes from freezing and bursting.

• Install a leak detector. Consider installing a leak-detection device in your home that will alert you if it detects water inside your apartment.

• Know how to shut off the water. In case of an emergency, make sure you know how to shut off the water in your apartment to prevent further damage.

Renters insurance and water damage FAQs