Does Homeowners Insurance Cover Water Damage?

Your standard homeowners insurance policy typically covers water damage caused by sudden or accidental leaks inside the house, including a burst pipe or an overflowing appliance. It can also cover water damage caused by wind, hail, ice or snow, for example, if your roof collapses under the weight of ice.

However, your policy likely won’t cover gradual flooding or leaks without additional coverage.

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When does home insurance cover water damage?

Generally, homeowners insurance will cover sudden, unexpected, or accidental water damage, especially if it comes from inside your home. This could include water damage due to the following:

burst pipes
Home system malfunction
Overflowing toilets or water heaters
Roof collapse due to snow or ice
broken water heater
Water used to put out a house fire.

It is essential that you take quick action to mitigate further water damage (provided it is safe) and that you contact your insurer and follow their instructions for a successful claim.

Read more: What does home insurance cover?

When does home insurance not cover water damage?

Your homeowners insurance may not cover water damage if:

You delay repairs
It is a gradual leak from a faucet, a dripping foundation, or something similar.
It is caused by a flood
It is the result of a sewer or drain blockage.
Your roof or another part of your home is leaking due to negligence

Read more: What doesn’t home insurance cover?

What does water damage coverage include?

Housing coverage

This part of your homeowners insurance reimburses for damage to the structure of your home, such as repairs if a covered water hazard has damaged your floors, walls, or ceilings.

Personal Property Coverage

While dwelling coverage is for your actual home, this coverage is for any personal property that is damaged by a covered water hazard. For example, this coverage can help pay for a damaged laptop or piece of furniture.

Temporary housing coverage

In the event that you are unable to stay in your home due to extensive water damage and the need for repairs, this coverage can help cover short-term lodging expenses. Certain other costs may also be included in this coverage, such as moving fees, storage costs, parking fees, and increased food expenses.

How much does a water damage repair cost?

While prices may vary depending on location and specific circumstances, Thumbtack data shows that the national average cost for water damage restoration is $1,536, with a range of $721 to $3,526.

For a specific region, Angi shows that the typical price range for water damage restoration in the New York tri-state area is $1,440 to $6,516. However, it again depends on the circumstances as it can range from $500 to $18,000 on the low and high ends.

Wide ranges make sense, as costs depend on the type of repair needed. For example, flooding from an upstairs laundry room could cause much more damage than a toilet overflowing in the basement, although it depends on the details.

Does home insurance cover mold caused by water damage?

Yes, many standard homeowners insurance policies include mold coverage if it is the result of a covered water damage hazard, such as a burst pipe. However, it is worth noting that it is common for insurers to set a limit on mold coverage, with the common limit being $5,000 to $10,000.

How to Expand Your Water Damage Coverage

Consider these options to increase your water damage coverage:

Increased coverage limits: You may be able to increase your umbrella coverage limits, including dwelling coverage, to better protect against water damage.
Flood Insurance: Standard homeowners insurance policies do not include flood coverage, so it may make sense to consider this insurance if it is available and appears necessary where you live.
Water Backup Coverage: Your policy may not cover water backup issues from sewers or sump pumps, so it’s worth considering this additional coverage.

Read more: How to buy homeowners insurance

How to File a Water Damage Insurance Claim

You can usually file a home insurance claim for water damage by following these steps:

Prevent further damage: If it is safe to do so, do everything you can to prevent additional water damage. For example, if there is a broken pipe, turn off the water pipe.
Document the damage: Take lots of photos and videos and note any damaged items.
Call your insurance company: Call your insurance provider as soon as possible to explain the situation and start your claim.
Follow your insurer’s instructions: Your insurance company will give you details on next steps and instructions on what they will need from you. They will likely ask for any documentation you have about the event and damages, and will send a claims adjuster to inspect the property.
Quickly respond to more queries: Your adjuster and/or insurer may request additional information throughout the claims process. To ensure the review is as quick as possible, please respond to your insurance companies promptly and include all required details.
Review your budget and schedule repairs: You will receive a payment estimate from your provider if your claim is successful. Be sure to review the budget to make sure everything is correct, then accept it and use the money to cover your home repairs.

9 tips to prevent water damage

1. Inspect your house frequently

Taking simple steps, such as checking bathroom and kitchen cabinets for wet spots, could prevent a catastrophe before it happens. The same goes for ensuring that the roof, siding, and other home materials are in acceptable condition and free of leaks.

2. Tilt your garden outward

Having rain and irrigation water drain away from your home can help prevent moisture from entering your foundation and, perhaps eventually, your home.

3. Install gutter guards

If necessary, consider installing gutter guards to prevent debris and water from accumulating on your roof.

4. Replace window seals

Caulking and re-sealing your windows can give you the peace of mind you need knowing your windows won’t cause water damage.

5. Store your belongings off the floor

Especially in the basement, having valuable items off the floor can help you avoid higher costs if your home were to suffer water damage. For example, if a burst pipe were to flood your basement, you may be able to avoid having to replace any items that weren’t stored below the ground.

6. Consider water leak sensors and automatic shut-off devices.

Water damage can occur suddenly and unexpectedly, so having automatic leak sensors and shut-off devices is one way to ensure you can turn off the water in your home before more damage occurs.

7. Locate your water shut-off valve.

If you don’t know where your home’s indoor water shutoff valve is, find it now so you don’t waste time if a leak occurs. The basement is a common location, although it depends on your home. Knowing where the valve is can help you mitigate further damage if you can access it quickly during an emergency situation.

8. Turn on appliances only when you are home

Running any water-related appliance, such as a dishwasher or washing machine, can cause water damage. That risk (such as an internal part of the appliance failing) does not decrease just because you are at home, but you will be able to react sooner to avoid further damage.

9. Keep the heat on when you’re away

Keeping your home at an appropriate temperature while you’re away can help prevent pipes from freezing and bursting.

Home Insurance and Water Damage FAQs