When you get homeowners insurance, you hope that you never need to use it. Still, it’s important to understand what your policy covers before something unexpected, like water damage, occurs.
In general, homeowners insurance covers sudden and accidental water damage from internal causes, like a faulty water heater or a burst pipe. It won’t cover all causes of water damage, though. If the water damage is due to flooding or lack of maintenance, your insurance likely won’t kick in.
Key Points
• Homeowners insurance generally covers sudden, accidental water damage from internal sources.
• Damage from preventable leaks and wear is usually excluded from coverage.
• Flood damage often requires separate insurance policies.
• Sewer backup and sump pump failure need additional coverage.
• Average water damage repair costs are $3,828, ranging from $1,364 to $6,296.
When Homeowners Insurance Covers Water Damage
As we mentioned, homeowners insurance will cover water damages in certain situations. For example, your policy may likely cover roof leaks caused by a storm but not ones caused by wear and tear on roof shingles. Similarly, if a pipe bursts in your home, the damage will be covered, but fixing the pipe itself will not.
It may be worth looking into whether your homeowners insurance covers plumbing issues. If, say, your water heater, dishwasher, or washing machine suddenly fails, your homeowners insurance probably won’t pay to replay the appliance, but it will likely cover the cost of the water damage.
When Homeowners Insurance Does Not Cover Water Damage
Homeowners insurance will not cover water damage from leaks that could have been prevented through proper maintenance. So, for example, does homeowners insurance cover water damage for a month-old leaking roof? Most likely not.
Flood damage is also not covered, but you can purchase additional flood insurance coverage.
Most homeowners insurance policies will also not cover damage from sewer backup or sump pump failure unless you have additional water backup coverage within your homeowners insurance policy. If you aren’t happy with your current insurer or policy, you can always look into changing homeowners insurance.
Recommended: What Does Homeowners Insurance Cover?
Preventing Water Damage in Your Home
You can help prevent water damage in your home if you keep up with routine maintenance and upkeep of your home. Clean your gutters and downspouts regularly so that debris and leaves do not clog them and cause water overflow issues. Frequently check major appliances like furnaces, sinks, dishwashers, washing machines, hoses, and pipes for leaks or other issues. If there is an issue, repair it promptly. Also, inspect your roof often for damaged, cracked, or worn shingles that could let in rain.
Keeping your thermostat high enough to prevent frozen pipes can also help prevent pipes from bursting — and damaging your home or property. During the winter, shut off the water supply to outdoor faucets and drain the lines.
It is important to know where your home’s main water shutoff valve is and how to use it so that if there is an emergency water leak, you can act quickly.
How to File a Water Damage Claim
In the event your home or property takes on water damage, you’ll need to act quickly. First, identify the source of the water damage, and stop the leak if you can. You should also try to dehumidify the room or area of the house to prevent mold.
Next, document the damage with photos and videos — this can help the insurance claim process run more smoothly. If you have any images of the same location from before the damage, that might also be helpful, although it is not a requirement. You should also take an inventory of any ruined personal belongings.
Clear communication with your insurance company throughout this process is key. Ask them for the preferred way to file a claim— in other words, online, by phone, or via the company’s mobile app — and report yours as soon as possible. An adjuster may schedule a visit with you after your file to investigate the damage.
Don’t plan to do any major work until your insurance company has reviewed the damage, though some temporary fixes are OK. For example, you might want to throw out a wet carpet to prevent mold from growing or shut off water to a broken pipe. Keep receipts from any purchases you make related to the water damage, as you may get reimbursed from your insurance company.
Recommended: How Much Is Homeowners Insurance?
The Takeaway
Water damage in your home can be highly inconvenient — and expensive. The cause of the water damage may determine whether your homeowners’ insurance will cover the damage or not. If the water damage was due to sudden and accidental leaks, you will likely receive reimbursement. But if the damage was due to flooding, sewer backup, sump pump failure, or general wear and tear, you likely won’t receive reimbursement.
If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.
FAQ
Is water damage from a leaky roof covered by insurance?
In general, homeowners insurance will cover water damage from a leaky roof if the leak was sudden and accidental and caused by a covered reason. If the water damage is due to flooding or lack of maintenance, for example, insurance likely won’t pay for the damage.
How expensive is water damage repair?
Water damage repair costs will vary depending on what needs repairing, how extensive the damage is, and where you are located. According to the home services website Angi.com, water damage restoration costs $3,828 on average, but ranges from $1,364 to $6,296.
Does my policy pay for leak detection or water removal services?
Homeowners insurance generally won’t cover leak detection or water removal services unless the leak is caused by a sudden, accidental event like a burst pipe.
Is damage from sewer backup or sump pump failure covered?
Most homeowners insurance policies will not cover damage from sewer backup or sump pump failure unless you have additional water backup coverage within your homeowners insurance policy.
Why isn’t flood damage covered by standard policies?
Flood damage is typically not covered by standard policies. However, you can purchase separate flood insurance. Even if you don’t live in an area that is flood-prone, it is advisable to have flood insurance because floods are the most common and costly natural disasters in the United States.
photo credit: iStock/coldsnowstorm
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