Are Water Leaks Covered in House Insurance?

Insure.com reports that water damage is a leading reason why policyholders file claims on their homeowner's insurance. Still, you have to be particularly careful of the terminology you use when describing water damage to your insurance agent. Policies do not cover leaking pipes unless the leak is caused by a storm or natural disaster. They do cover water infiltration caused by Mother Nature, but if you want flood insurance, you'll need a separate policy.

Homeowner's insurance does not cover damages caused by leaking pipes inside your home. Generally, insurers consider this type of damage to be the result of negligence. You can help prevent against water damage caused by leaky pipes by routinely inspecting your home's plumbing. Keep all fixtures well maintained and fix any minor problems immediately. Check your heating and cooling systems, sprinkler system and household appliances. If you ignore repairing even a small leak, it could eventually lead to more serious damage. In most cases, a homeowner's policy covers water damage caused by water pipes that freeze and burst. However, the insurance company may deny your claim if you left your home unoccupied without heat.

A typical homeowner's policy covers storm damage or damages caused by severe weather conditions. If the insurance adjuster determines that water damage was due to rain getting inside your home from a hole in the roof or a window broken by high winds, the insurance company will pay for the loss under the terms of your policy. Although your insurance company will probably pay for damages inside your home if water leaks through your roof during a heavy rainstorm, the company may not reimburse you for the cost of roof repairs. Insurance companies usually consider a leaky roof a maintenance problem.

Most standard homeowner's insurance policies do not cover water damages from drains or sewer backups. These events are specifically excluded from a homeowner's policy, but, for an added cost, you can purchase a supplemental policy to cover the loss. Likewise, water seeping from the ground into your basement is not covered, even if it damages your home's foundation. This type of water damage occurs gradually over time instead of as the result a sudden, unexpected event. If an appliance such as a washing machine or dishwasher breaks without warning and floods your kitchen, your homeowner's insurance may pay for the water damage to your home but not to repair the appliance. Purchasing replacement parts or a new appliance would fall under the category of maintenance.

If a broken water pipe or appliance is responsible for flooding your kitchen or basement, be specific about the cause when talking to your insurance agent. Be careful not to use the word "flood" when describing the event. Homeowner's insurance does not cover damages caused by flood. You need a separate flood insurance policy to cover losses from water that floods your home as a result of an overflow of a lake, creek, stream or river. Flood insurance is available in communities that participate in the government's National Flood Insurance Program (see Resources). Any events, such as floodwaters, that are excluded from coverage are named in your policy. Other policy exclusions may include damages due to mold, fungus and wet rot.