One of the most common questions we hear is “does homeowners insurance cover water damage?” While you are looking for a simple yes or no, unfortunately, it’s not that easy. From the source of the water involved to your individual policy, there are many factors that determine whether or not your homeowners insurance will cover the cost of water damage restoration. Our guide to understanding water damage and insurance will help you navigate exactly what types of water damage your insurance will cover.
Does Homeowners Insurance Cover Water Damage?
Unfortunately, understanding whether homeowners insurance covers water damage can be extremely complicated. Generally speaking, most insurance policies will cover water damage that is sudden and accidental.
Basically, this means the water damage needed to be caused by an unexpected event. There were no previous signs of a potential problem and the damage occurred abruptly and without warning.
However, your insurance company is likely to deny your claim due to pre-existing damage negligence. For example, if you knew there was a leak but did not make repairs, they will not approve your water damage claim.
Does Homeowners Insurance Cover Water Damage From Rain?
Although this seems like a straightforward question, the answer is somewhat complicated. Your homeowners insurance will cover water damage from rain, but not if the rain touched the ground first. Confused yet? We’d be surprised if you weren’t.
When it comes to water damage from rain, there is a very fine line between what is covered and what is not. If the water damage is caused by rain that touched the ground, say a basement flood for example, the damage is usually not covered at all.
Unfortunately, once rain touches the ground it is almost always considered a flood. It usually doesn’t matter if the were actual floodwaters or if the rain just seeped through the ground into your basement.
However, if the rainwater comes through the roof and damages your attic or an upper floor, your homeowners insurance may cover repairs. Depending on the situation, they may only cover the water damage and not repairs to your roof.
Understanding Your Homeowners Insurance Coverage
In order to protect yourself from the expense of water damage, check what is covered in your homeowners insurance policy at least once a year. If you have questions about your policy, contact your insurance agent for a detailed explanation of your coverage.
- Dwelling Coverage – Dwelling coverage will only cover damage to the structure of your home. For example, if a pipe breaks in your ceiling, dwelling coverage will cover the cost of repairs to the broken pipe and the ceiling damage. You will need to pay out of pocket to replace damaged personal items.
- Personal Property Coverage – Personal property coverage still includes structural damage, but also covers damages to personal items. In that same example of a broken pipe in the ceiling, personal property coverage will cover the same cost of repairs and cover damage to anything underneath as well. This includes furniture, electronics and other personal items damaged in the incident.
What to Look at When Reviewing Your Insurance Policy
In addition to confirming the type of coverage you have and what your homeowners insurance covers, there are a few other important things to review as well. Specifically, you need to look at your coverage limits, deductible and exclusions. Again, if you have any questions, contact your agent immediately.
- Coverage Limits – Every insurance policy has a maximum coverage limit that they will pay out on a claim. Some policies may have different coverage limits depending on the cause of the damage. Make sure your coverage limit is enough to cover repairs for the most common types of water damage.
- Deductible – Your deductible is the amount you need to pay out of your own pocket. Policies with a lower monthly rate often have a higher deductible. While paying less each month may sound great, it won’t help if you can’t afford to pay your deductible when you file a claim.
- Exclusions – Every homeowners’ insurance policy will exclude some types of damage. Common exclusions are floods and hurricanes. Separate coverage may be offered for some exclusions.
Types of Water Damage Covered By Insurance
Again, most policies will cover water damage that is sudden and accidental. Some common types of water damage covered by insurance include:
- Damage from rain- or snowstorms, as long as it did not touch the ground first
- Plumbing leaks or failures, including supply line breaks, frozen or burst pipes, hot water heater failures, etc.
- Damage associated with putting out a fire
- Roof leaks, although your coverage may not include replacing the roof itself
- Plumbing overflows, including toilets, bathtubs, washing machines, etc.
- Mold caused by water as long as it’s immediately fixed
- Vandalism
Types of Water Damage Not Covered By Insurance
Insurance policies can be extremely complicated and there are several common coverage exclusions to understand. In some cases, you can purchase additional insurance. However, most policies have at least a 30-day waiting period. For that reason, it’s important to review your coverage regularly and adjust your policy as necessary.
Negligence
Regardless of what caused the damage, your insurance company will usually deny your claim if there are signs of negligence. This includes not replacing damaged appliances or not repairing problems that lead to more damage over time.
Gradual Leaks or Seepage
Gradual leaks or seepage are not covered. This includes leaking pipes, water seeping through basement cracks, leaky roofs and water coming in around your chimney. If you have a leak or there are signs of seepage, repair the problem immediately. Your insurance may cover the damage, but only if you take action right away.
Repairing or Replacing the Source of the Water Damage
Another thing typically not covered by your insurance is the source of the water damage. While they will usually cover damage from a faulty hot water tank or dishwasher, they normally do not cover the cost of replacing the unit itself. Review your policy or contact your agent for complete details about your coverage.
Floods
As we outlined above, standard homeowners insurance policies do not cover flood damage. In this case, the term flood includes any water that enters your home after touching the ground. If you live near a floodplain or other body of water, you may consider adding separate flood insurance.
Sewage Backups
Often related to floods, sewage backups are not covered for similar reasons. Contact your agent if you have a sewage backup that is not associated with rains or flooding to determine if they will cover the damage.
Hurricanes and Tropical Storms
Due to their force, standard policies do not cover wind or water damage from hurricanes and tropical storms. Separate windstorm and hurricane policies are offered in some areas. Contact your agent for more information.
Earthquakes, Landslides, and Sinkholes
Since they deal with the earth beneath your home, damage from earthquakes, landslides, and sinkholes are normally not covered by standard policies. In some cases, separate earthquake insurance may be available. Call your agent to discuss your options.
What Does Homeowners Insurance Cover
Assuming they approve your claim, most homeowners insurance cover the following water cleanup services.
Water Cleanup and Dry Out
Your insurance policy will cover the cost of water damage restoration. This includes removing standing water as well as drying out damaged materials.
Mold Removal and Prevention
Once the water is removed, your insurance may also cover mold removal and prevention as long as it is directly associated with the water incident. However, they may not cover the mold removal if there was a significant delay in the cleanup or if there was mold prior to the incident.
Replacement of Personal Items
If you have personal property coverage, your insurance company will also cover the costs associated with replacing damaged personal items. However, this may not include the item that caused the damage, such as a dishwasher or washing machine. Review your policy or contact your agent for complete details.
Reconstruction and Restoration
Finally, your insurance will cover the cost of restoring your home to the original condition. This includes installing new flooring, drywall, ceilings, cabinets and other structural items that were damaged.
Water Damage Insurance Claim Tips
The key to getting your insurance to pay for water damage is taking action quickly. Use these water damage insurance claim tips to navigate the process and make cleanup easier.
1. Document the Water Damage
As soon as you notice something, take photos and video to document the damage for your claim. Remember to document both structural damages as well as to your personal items.
2. Take Action to Stop or Limit Damage
Shut off your water immediately If the cause is a burst pipe or leak. If you can’t shut off the source of the water, begin removing it as soon as possible. You can do this yourself or call a restoration company to help.
3. Contact Your Insurance Company
Contact your insurance company quickly to ensure that your water damage claim is covered. Also, most restoration companies are happy to call them with you. They know the language and can help guide you through the claims process.
4. Continue to Document the Water Damage
Unfortunately, the claims process often moves slowly. Continue to document damage and update your claims agent regularly while they are reviewing your case.
5. Get Your Own Estimate
Your insurance company will send an adjuster out to estimate the damage. Although they will do a fair and honest appraisal of the damage, it’s in their best interest to provide the lowest estimate possible. Most water damage restoration companies offer a free estimate, so it’s worth getting your own estimate.
6. Keep Receipts for All Expenses
Keep all of your receipts for expenses related to the water damage. For example, if you needed to spend the night in the hotel or you rented a pump to remove the water. Your insurance will reimburse you for some or all of those expenses if they approve your claim.
7. Choose a Company You’re Comfortable Working With
Your insurance company will often recommend that you use one of their preferred vendors for repair. While there is nothing wrong with this, it’s in their best interest to get the work done for the lowest cost. However, you are always free to choose the company you’re most comfortable working with.
If you have water damage, call Restoration Local® now at 1-888-443-3110 for a free estimate on cleanup services. We have water damage restoration contractors near you that can remove the water and dry your home. Whether your home insurance covers water damage or not, they will restore your home to its original condition fast.
