Does homeowners insurance cover water damage

Does homeowners insurance cover water damage?

Water damage is a much more common problem in homes than you might think. Frozen pipes can burst in the winter, washing machine hoses can leak, and sprinkler systems can fail, causing extensive water damage to your home. The average water damage claim is $11,098, and these issues cost approximately $20 billion per year, making it a serious and costly problem for homeowners.

Fortunately, your homeowners insurance covers damage caused by a wide range of disasters, including water damage in some cases. However, while homeowners insurance frequently covers certain types of water damage, it can be difficult to understand what is and isn't covered. Here's what you should know if you're wondering whether your homeowners insurance covers water damage or how to keep the problem from getting worse.

Does home insurance cover water damage?

So, when exactly does homeowners insurance cover water damage? It is determined by what caused the water damage. Water damage from a burst pipe is almost always insured. For example, if your pipe freezes and bursts, both the pipe and the water damage are most likely covered by insurance (minus your deductible).

However, the application of coverage becomes even more complicated. A significant dishwasher leak may be covered — or your claim may be denied. Everything is dependent on the maintenance you'd done up to that point. If you knew the dishwasher was having problems and did nothing about it, your insurer may claim that you were negligent and that the water damage could have been avoided, which means your claim will be denied. It's critical to read the "Duties in the Event of a Loss" section of your homeowners insurance policy to understand what to do if a claim situation arises.

A standard homeowners insurance policy almost always excludes flood damage. For this type of coverage, you'll usually need to purchase a separate flood insurance policy.

What type of water damage is covered by homeowners insurance?

The most common homeowners insurance policies on the market are HO-3 policies. These versatile policies cover your home and detached structures against open perils. That is, unless your policy expressly excludes the peril, many scenarios in which your home or detached garage is damaged by water are covered. Personal property coverage under the HO-3 policy form also accounts for 16 named perils, which means that it must be a listed peril in your policy to repair or replace your personal belongings.

In most cases, you won't have to worry about whether or not your homeowners policy will cover water damage. However, it is critical to understand which scenarios are covered by your policy and which may result in your claim being denied.

Rain and flood

If you're wondering what types of water damage are covered by homeowners insurance, this is probably where your thoughts go first. Is rain damage covered by homeowners insurance? If it's storm damage, the answer is usually yes. But what about flood insurance? No, almost always.

If a storm breaks a window and rain damages your living room's furniture and sheetrock, your dwelling coverage will typically pay for the repairs to your walls and floor, subject to your deductible and limits. Similarly, your personal property insurance should cover your furniture.

However, if you leave your window open and forget to close it before a rainstorm moves in, the rain will come in and damage your furniture, and your insurance claim to repair or replace your furniture will most likely be denied.

Flood losses are also not covered by standard home insurance policies. Floods (like earthquakes) are almost always expressly excluded from homeowners insurance policies. So, if the heavy rains cause water to pool in your home, your standard policy will not cover the damage. Flood insurance is available to homeowners through the Federal Emergency Management Agency's National Flood Insurance Program.

Overflow of appliances

In most cases, your dwelling coverage will pay to repair damages caused by a water overflow from an appliance, but only if the overflow occurs accidentally and unexpectedly. For example, if a sock gets caught in your washing machine's water outflow hose and floods your laundry room, your home insurance should cover the resulting damage. If the water causes damage to other items in the laundry room, such as a dryer or cabinets, your personal property insurance should cover the losses.

However, if the problem was caused by your own negligence, your homeowners insurance will not cover the water overflow from appliances. For example, if you remove your washer's drip pan and decide not to replace it, and water destroys your floor over time, the insurer will not pay for the damage.

Leaking pipes

When a pipe bursts or breaks due to an accident, your first thought after discovering the mess is likely to be whether or not your homeowners insurance will cover the damage. The good news is that your home insurance should cover the resulting water damage. For example, if you reach for a heavy iron skillet under your sink and accidentally crack a pipe while pulling it out of the cabinet, you should have a covered loss, and your claim should be honored. Under the same conditions, your personal property coverage should cover the cost of replacing or repairing items such as rugs. If your cabinets are damaged, your home insurance should repair or replace them.

However, if leaking pipes cause damage as a result of poor maintenance, the insurer will deny the claim. For example, if a leaking pipe worsens and causes long-term damage such as mold or wet/dry rot, the insurance company may deny your claim.

Extinguishing a fire

In most cases, your dwelling and personal property insurance policies will cover water damage caused by extinguishing a fire. If a grease fire destroys your kitchen and firefighters' water pours into your living room, destroying flooring, furniture, and sheetrock, your policy should cover the costs.

However, if the fire was started due to negligence, the insurer may refuse to cover the fire or water damage. For example, if your stove was previously inspected and the inspector discovered that a hose was old, worn out, and needed to be replaced, and you failed to replace it, the insurer may deny the entire claim due to negligence.

Sewer backup

Is rain damage covered by homeowners insurance? We've already discussed some of the direct effects, but what if water from a sewer or outside drain backs up into your house after heavy rain?

In general, if the backup occurred off your property, such as in the street, the resulting damage may be covered by your insurer. However, if the water backed up on your property, most home insurance policies do not cover this type of water damage. You'll usually be able to add additional sewer backup coverage to your home policy to cover you if you ever run into this problem.

How to file a water damage insurance claim

When water damage occurs, you must take the following steps before filing a claim:

Stop the flow of water at the source to avoid further damage. If a pipe bursts, immediately turn off the water.
Make short-term repairs. Cover the window with a piece of plastic sheeting if a storm breaks your living room window and the incoming rain damages your furniture. In some cases, contacting a contractor to make more extensive temporary repairs may be necessary.
Remove all wet and ruined items but do not discard them because you will need them as proof of damage when filing a claim.
Remove any excess water. In some cases, you may need to rent a water vac to remove standing water. To avoid mold growth, thoroughly dry affected areas.
Move any undamaged personal items to a secure location.
Call the police and file a report if the damage was caused by illegal activity.

After you've taken precautions to secure your belongings and prevent further damage, you can begin preparing to file an insurance claim:

Make a detailed list of all the damages to your home and possessions. Take close-up and wide-angle photos or videos of all affected structures and personal property.
Gather receipts related to the incident and include them in the claim. For example, if you buy a tarp to cover a hole in the roof, you can deduct the cost from your homeowners insurance claim.
To file a claim, contact your insurance company. The process for filing claims varies by insurer. Some providers allow you to file claims online or through a mobile app, whereas others require you to contact a claims center or an agent.
Complete and file all claims documents within the time frame specified. With your claim, include photos, receipts, and videos.
If the disaster makes your home uninhabitable, evacuate and file a claim for loss of use expenses such as hotel bills and restaurant tabs, if your policy covers them.
Schedule a meeting with a claims adjuster. The adjuster will thoroughly inspect the damage to determine the cause and the amount of compensation the insurance company will provide for your claim.

How to prevent water damage

The best way to avoid water damage is to perform regular home maintenance:

Seal all windows both inside and outside your home to prevent water seepage.
Remove any trees whose roots could clog the underground aqueduct system.
To prevent standing water and direct rainwater runoff away from the structure, angle the soil in any planting beds that border your house downward.
Install gutter guards to keep debris out of the water. Clear debris from downspouts and position them so that water flows away from your home.
Inspect your roof on a regular basis for damaged or missing shingles. Hire a professional roof inspector every five years for newer roofs. Every one to two years, older roofs should be professionally inspected.
Examine exposed pipes for cracks or leaks. Repair or replace damaged pipes as soon as possible.
Examine the hoses that connect to appliances like refrigerators and washing machines. Replace worn-out or damaged hoses right away.
Showers and tubs should be sealed to prevent water leakage.
Install an emergency pressure release valve in your plumbing system if you live in a cold climate to prevent pipes from bursting during the winter's frigid temperatures.
Know where your main water valve is and how to turn it off if there is a problem.
Turn off the water supply to refrigerators and washing machines before leaving for vacation.
Keep an eye on your water bill for any significant increases in water consumption. Excessive water consumption could indicate a problem with your plumbing system.