Discovering a plumbing problem in your home is stressful — not only could there be damaged pipes to repair, but there could also be water damage to your floors, furniture, and personal property. Fortunately, in many cases, homeowners insurance typically covers plumbing leaks. However, in other cases, you may be financially responsible for the repairs alone. Find out how to spot the differences so you know when and how to file an insurance claim.
Key Points
• Homeowners insurance covers sudden plumbing issues like burst pipes and clogged drains.
• A standard home insurance policy does not cover flooding, so a separate flood insurance policy is required for such coverage.
• Regularly check and maintain plumbing fixtures to prevent leaks.
• Document damage with photos and inventory for insurance claims.
• Consider a home warranty for extra coverage on appliances and systems.
When Homeowners Insurance Covers Damage From Plumbing Issues
Does homeowners insurance cover plumbing repairs? Often, the answer is yes. There are several common scenarios that personal property coverage typically handles. In such cases, you’d only be responsible for paying the deductible, and your insurance company would pay or reimburse you for the rest.
Burst Pipes
Various events can burst your pipes, quickly spraying water over large areas of your home, basement, or crawl space. The cause could be freezing temperatures, high water pressure, or something else. As long as the problem doesn’t stem from the owner’s lack of maintenance, your homeowners insurance should cover water damage of this type.
Clogged Toilets and Drains
It’s easy for clogged drains to go unnoticed until it’s too late. Whether the leak is a slow drip or a sudden overflow, as long as it wasn’t caused by typical wear and tear, you should be covered. Of course, filing a claim makes sense only if the repair work costs more than your deductible.
Sump Pump Overflow
Depending on where you live, it may be challenging to keep your basement or crawl space dry, even with a sump pump in place. If a power outage or mechanical issue causes an overflow, you may be able to file a claim.
Sewer and Drain Backups
Damage caused by sewer or drain backups isn’t always covered by a standard policy, but it’s worth checking the fine print. In some cases, you may need to purchase a sewer backup rider to be sure you’re covered. Add-ons of this type generally raise your homeowners insurance premium costs.
When Homeowners Insurance Does Not Cover Plumbing Repairs or Damage
There are three main circumstances when homeowners insurance generally won’t cover damage caused by plumbing emergencies.
The first is general wear and tear. Homeowners are responsible for the ongoing maintenance of their home and plumbing systems. So problems stemming from worn-out pipes or old fittings typically don’t qualify for an insurance claim.
Homeowners insurance also doesn’t cover plumbing leaks caused by negligence. Insurers expect you to keep the home’s temperature warm enough to prevent pipes from freezing in normal winter temperatures. They also expect you to notice a small, ongoing leak before it becomes a major issue. In these scenarios, a little bit of attention could prevent a major plumbing issue.
Finally, a standard home insurance policy doesn’t cover flooding, even if it affects your plumbing system. You’d need to have a separate flood insurance policy.
In addition to restrictions and exclusions in these situations, there are homeowners insurance coverage limits. No matter how much damage your home incurs, your insurance company only pays up to the limit specified in your policy.
Recommended: Mortgage & Homeowners Insurance Definitions
Preventing Plumbing Problems in Your Home
Regardless of whether or not a specific plumbing problem is covered by homeowners insurance, prevention can save you the headache of filing a claim, dealing with contractors, and paying out your deductible. Staying on top of a few maintenance tasks throughout the year can make a big difference in the overall health of your plumbing system and appliances.
Regularly check under sinks for slow leaks before they generate major water damage. The same goes for the seals around your tub and shower — even small amounts of water can cause major hidden damage over time.
Perform annual checkups on the hoses leading to your appliances, like your washing machine and hot water heater. For even more protection, you can upgrade with a water leak monitor near each appliance.
Also, pay attention to what’s going on outside and underneath your house. Unhook outdoor hoses before your first frost and consider insulating the pipes under your house, especially if you live in an area with extreme winter cold.
Beyond ongoing maintenance, it’s also worth considering home warranty coverage. For a small annual fee, you could get extra coverage on appliances, garbage disposals, HVAC systems, and more.
How To File a Plumbing-Related Insurance Claim
When you experience a plumbing crisis, turn off the water source to prevent any additional damage and then contact your insurance company. If your homeowners insurance does cover your plumbing situation, you’ll need to file a claim as the first order of business.
Your insurer may offer several ways to file a claim, such as via phone or through a mobile app. Start the process as soon as possible to explain what happened. It’s also smart to film or take photos of the damage to your home and personal property. Create an inventory list to help the insurer estimate each item’s value.
The insurance company may assign an adjuster to come look at the damage in person. Alternatively, your files may be enough to start the claims process.
If the reimbursement is approved, you can start looking for contractors to work on repairs. Your insurance company may have recommendations. If there’s a chance of mold, you’ll also want to get estimates from remediation crews.
Remember that the insurance company will subtract your deductible amount from the cost of the repairs. So if the repairs cost $5,000 and your deductible is $1,000, you’ll only receive $4,000 to pay the contractor. In some cases, the insurer may even pay the contractor directly and you’ll need to pay the difference.
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The Takeaway
Knowing how much coverage you have for home plumbing problems is key to making sure you’re prepared for repair costs. Bear in mind that your homeowners policy is designed for sudden, unexpected events. That means that plumbing issues due to neglect or poor maintenance are not likely to be covered.
When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.
FAQ
Does insurance pay to fix the actual burst pipe or leaking appliance?
It depends on the reason for the burst pipe. If it’s an accident that couldn’t have been prevented with regular maintenance, then your policy should cover the actual root cause of the water damage.
How expensive are plumbing repairs and water damage restoration?
The cost of plumbing repairs and water damage restoration can quickly add up. According to Angie’s List, a home maintenance site, the average cost of water damage restoration is $3,828. You may need flooring and subflooring replaced, as well as ceiling repair, if the leak originated on a higher floor. Plus, you may also need mold remediation if the water soaked deep into the flooring or sat for a long period of time.
Will insurance cover the cost of finding a hidden plumbing leak?
Your insurance may cover costs related to a hidden plumbing leak, as long as the leak wasn’t caused by homeowner neglect or wear and tear.
Is water damage from a leaking toilet or dishwasher hose covered?
If the issue is sudden and unforeseeable, it may be covered. But if the hose was simply old and worn, or the toilet was leaking slowly over time, you may be responsible for the bill, as insurers expect homeowners to look after their plumbing systems.
Does insurance cover damage from old or poorly maintained pipes?
No. It’s the homeowner’s responsibility to maintain pipes, regardless of age.
photo credit: iStock/Biserka Stojanovic
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