Is Water Damage Covered Under My Homeowners Insurance Policy?

3/16/2023 (Permalink)

Water damage is common, make sure to have the right homeowner insurance.

Water damage can be a stressful and expensive experience. If your home was damaged by water, you may be wondering if your homeowner's insurance policy covers the cost of repairing the damage. Here, we'll take a look at how water damage is covered by home insurance policies and how to protect yourself from this risk in the future.

Is Water Damage Covered by Homeowners Insurance?

Most homeowners insurance policies will cover water damage to your home, but not all of them do. And even if your policy does cover it, that doesn't mean you're off the hook for paying out-of-pocket expenses.

The first thing to know is that there are two types of water damage: external and internal. External means rain or snow coming through the roof; internal means a burst pipe or leaky faucet somewhere inside your house.

The answer to this question depends on three main factors: your policy type, where the water damage originated from, and whether it was accidental or wear-and-tear.

What is your Policy Type?

If your policy is a standard one, then you may be covered. A standard homeowner's insurance policy is designed to cover losses from water damage, fire, theft, and other perils that are common to most homes. If you have a named peril policy or an umbrella policy, there are certain exclusions that apply which could mean that water damage is/isn't covered under these types of policies either. At the end of the day, coverage depends on your policy type. Understanding your policy and its coverage is important in order to be prepared for unexpected losses.

Where did the Water Damage Originate from?

If you're wondering whether your homeowner's insurance policy covers water damage, the next question to ask yourself is: where did the water damage originate from? In other words, was it caused by a storm or natural disaster or by a burst or leaking pipe?

If you are dealing with water damage from a burst pipe or a leaking appliance, then this is likely covered by your homeowner's insurance. However, if the source of the water loss is a flood--then there's no guarantee that your insurer will cover any repairs needed as a result of this type of incident.

Was it Accidental or Wear-and-Tear?

The difference between accidental and wear-and-tear water damage is in the cause. Accidental damage happens when a sudden, unexpected event like a burst pipe or an appliance leak causes water damage. Wear-and-tear water damage occurs because of gradual deterioration to your property's structure or foundation over time, such as cracks in the walls or foundation, or leaks that go untouched for extended periods of time.

Water damage is a common problem and one that can be very expensive to fix. If you have water damage, your home insurance will most likely cover it, but there are exceptions. You should always check with your agent when buying homeowners insurance.