Water damage can be a homeowner’s worst nightmare, causing significant property damage and leading to costly repairs.
Fortunately, most homeowners’ insurance policies offer some level of coverage for water damage. However, understanding what is covered and excluded is essential to protecting yourself.
This blog explores the types of water damage insurance policies typically cover, the exclusions homeowners should be aware of, and the steps to file a successful water damage claim. You’ll understand how to protect your home and navigate the insurance process when water damage occurs.
Let’s get straight to the point.
Homeowners’ insurance typically covers sudden and accidental water damage, such as burst pipes, weather-related damage, plumbing failures, overflowing fixtures, and appliance leaks. However, exclusions include gradual damage, flood damage, negligence, and sewer backups unless additional coverage is purchased.
To file a water damage claim, document the damage, mitigate further harm, contact your insurer, provide repair estimates, and schedule an inspection. Understanding your policy’s coverage and exclusions is essential to avoid costly surprises when dealing with water damage.
Types Of Water Damage Insurance Coverage
1. Sudden And Accidental Water Damage
Sudden and accidental water damage is the most commonly covered standard home insurance policy type. This refers to water damage that occurs unexpectedly and without warning, such as a burst pipe, a water heater leak, or an overflowing washing machine.
Since these incidents are unforeseen and beyond the homeowner’s control, insurance companies generally include them in the coverage. This type of damage is considered a basic risk, and the homeowner is typically not held responsible as long as proper maintenance has been conducted beforehand.
2. Weather-Related Water Damage
Weather-related water damage occurs during natural storms, heavy rain, hail, or snowmelt. If water enters your home due to sudden weather events, such as a storm that damages your roof or heavy rain that causes a window to leak, your insurance policy will likely cover the damage.
However, some policies may exclude specific weather conditions, such as hurricanes or floods, unless additional coverage is purchased. It’s essential to review your policy carefully to understand which weather-related events are included in your coverage and which require separate insurance.
3. Water Damage From Plumbing Failures
Plumbing system failures, such as burst pipes or broken water lines, are often covered by homeowner’s insurance policies if the damage is sudden and accidental. However, the condition of the plumbing plays a key role in whether or not the claim is approved.
The insurer may deny the claim for negligence or wear and tear if the pipes are old, corroded, or improperly maintained. Homeowners are encouraged to keep their plumbing systems in good condition to avoid potential claim denials related to aging infrastructure.
4. Overflowing Fixture
Water damage from the sudden and accidental overflow of household fixtures, such as bathtubs, sinks, or toilets, is generally covered under standard home insurance policies. For example, if you accidentally leave the tap running and it leads to significant water damage, your insurance will likely cover the repair costs.
However, this coverage usually applies only if the overflow is truly accidental. Intentional misuse or recurring negligence in managing the fixtures may void the claim, so it’s important to ensure proper usage and maintenance of home plumbing fixtures.
5. Appliance Leaks
Leaks caused by malfunctioning appliances like dishwashers, refrigerators, or washing machines are typically covered by homeowner’s insurance, provided the damage occurs unexpectedly. If an appliance suddenly breaks down and causes water to flood your kitchen or laundry room, your insurance should cover the damage.
However, the insurer may reject the claim if the appliance had visible wear or damage or was known to be faulty before the incident. Regular maintenance of household appliances is crucial to ensuring that claims for water damage resulting from leaks are not denied.
Exclusions In Water Damage Insurance
While water damage is often covered, there are specific exclusions homeowners should be aware of:
1. Gradual Damage
Gradual damage is among the most common exclusions in water damage insurance policies. It refers to damage over an extended period due to neglect or poor maintenance.
For example, if a small roof leak is ignored for months and, over time, leads to extensive water damage, the insurance company may deny the claim, classifying it as gradual damage.
Homeowners are expected to maintain their properties, and failing to address minor issues that turn into major problems typically results in a denied claim for water damage.
2. Flood Damage
Flood damage is another significant exclusion from standard home insurance policies. Most policies cover water damage from inside the home.
Still, homeowners are usually not affected by external flooding, such as rising water from heavy rains, river overflows, or other natural disasters.
To protect against flood damage, homeowners must purchase separate flood insurance or add a specific flood insurance rider to their existing policy. Without this, flood-related losses can leave homeowners facing hefty out-of-pocket expenses.
3. Negligence
Negligence on the homeowner’s part can also lead to a denied water damage claim. Insurance companies expect homeowners to properly maintain their homes, which includes making timely repairs and addressing potential hazards.
If water damage occurs due to a homeowner’s failure to perform necessary upkeep, the insurance company may refuse to cover the damage. Letting problems like plumbing leaks or deteriorating roof conditions go unattended could void your insurance coverage when you file a claim for related water damage.
4. Sewer Backups
Sewer backups are typically excluded from most standard home insurance policies unless the homeowner opts for specific additional coverage. Water damage resulting from sewer backups, drain blockages, or similar incidents usually requires a separate rider or endorsement to be covered.
Without this extra protection, Withers may not be compensated for repairs and clean-up costs after a sewer backup damages their property. Adding sewer backup coverage is wise for those living where such incidents are more likely to occur.
Steps To File A Water Damage Claim
1. Document The Damage
When you notice water damage, take detailed notes and photographs of the affected areas.
Document any damaged property, such as furniture or appliances, and take photos of the water source if possible. This evidence will support your claim and help the insurance adjuster assess the damage accurately.
2. Mitigate Further Damage
It’s important to act quickly to prevent further water damage. Most insurance policies require homeowners to take reasonable steps to mitigate the damage.
For example, if your roof leaks, you should place buckets to catch the water and use tarps to cover the area. Failing to take preventive measures can reduce the payout or lead to claim denial.
3. Contact Your Insurance Provider
Notify your insurance provider as soon as possible about the water damage.
They will guide you through the claims process, including scheduling an inspection and providing forms to fill out. Contacting them promptly is essential, as delaying could jeopardise your claim.
4. Provide Repair Estimates
Obtaining repair estimates from licensed contractors to present to your insurance company is a good idea.
This can help speed up the claims process and accurately represent the costs of fixing the damage.
5. Schedule An Inspection
Your insurance company will likely send an adjuster to inspect the damage. They will assess the extent of the damage, verify the cause, and determine if the claim is valid.
Ensure you are present during the inspection to answer questions and provide any additional information the adjuster may need.
6. Receive Payout
If your claim is approved after the inspection, the insurance company will offer a payout based on the estimated cost of repairs and your policy limits.
Depending on your policy’s coverage and any applicable deductibles, the payout can either cover the full cost of repairs or a portion.
Conclusion
Understanding the nuances of water damage insurance coverage is crucial for every homeowner. While most policies cover sudden and accidental incidents, such as burst pipes or appliance leaks, exclusions like gradual damage, flooding, negligence, and sewer backups can expose homeowners if not properly addressed.
Regularly maintaining your property, reviewing your policy for gaps, and knowing the steps to file a claim can ensure you’re prepared to handle water damage effectively. In short, proactive preparation and thorough knowledge of your insurance coverage are key to safeguarding your home against costly water damage repairs.
FAQs About Water Damage
What Does Water Damage Include?
Burst pipes are often one type of water damage covered by homeowner’s insurance. This may include frozen pipes that break due to insufficient heating, but it would not apply if you failed to keep the house comfortable. Accidental leaks, such as faulty plumbing or appliances like washing machines and dishwashers, can also cause water to escape into the environment.
Does House Insurance Cover Water Leaks?
Most conventional building and contents house insurance plans cover water leaks, typically referred to in policy booklets as “escape of water.”
What Is Hidden Water Damage?
Hidden water damage insurance protects against financial losses incurred due to water damage caused by a leak concealed within piping or a household device. Your home’s internal systems may have been subject to undetected wear and tear, degradation, corrosion, or rust, which may have led to the hidden water leak.
Can You Claim For A Bathroom Leak On Insurance?
Leaks, such as those caused by a leaking shower, radiators, or appliances, are typically covered by the standard coverage of homeowner’s insurance. Otherwise, if water is leaking through due to age or condition, a claim can often be declined.
What Is An Escape Of Water Claim?
The most common type of homeowner’s insurance claim is for “escape of water,” which refers to damage caused by a water leak. The source of the leak is either your plumbing or heating system or equipment in your house, such as a washing machine.
