Homeowners Insurance For Water Damage

Water is one of the most dangerous threats to your home and belongings, so it's critical to understand what your home insurance covers in the event of water damage.

Water damage, such as burst pipes, can be covered by homeowners insurance.

Water damage (including freezing damage) is one of the most common and expensive types of homeowners insurance claims. According to the Insurance Information Institute, approximately one in every fifty homeowners files a water damage or freezing claim each year, accounting for 29 percent of all homeowners insurance claims. A water damage or freezing claim costs an average of $11,098.

Most Expensive Home Insurance Claims

Water damage and freezing claims are the third most expensive type of home insurance claim.

Types of Water Damage Covered by Homeowners Insurance

Water damage that is "sudden and accidental" (such as a burst pipe) is generally covered, but not gradual damage, such as a leaking bathroom sink. Flooding, such as that caused by a hurricane's storm surge, is also not covered.

Water damage typically covered by homeowners insurance includes:

• Burst pipes. This could include a frozen pipe that bursts, but not if you failed to keep the house adequately heated.
• Accidental leaks, such as leaking plumbing or a leaking appliance, such as a broken washing machine or dishwasher.
• Water damage after a fire from water used to extinguish the flames, such as water from a sprinkler system or a fire department hose.
• Water damage caused by a roof leak, such as damage caused by a storm or a tree falling on your roof. Keep in mind that if an accident (such as a fallen tree) damages your roof, you must repair it within a reasonable time frame. Failure to do so may result in additional water damage that is not covered by insurance.
• Storm-related water damage, such as heavy rain or hail.
• Ice dams, such as ice that accumulates in your gutter and damages your home, may be covered if the damage is sudden and not the result of a lack of maintenance.

Types of Water Damage Not Covered by Homeowners Insurance

Here are a few examples of common issues that are typically not covered by a standard homeowners insurance policy:

• Flood damage. Most notably, flood damage is not covered by a homeowner's insurance policy. Flood water is caused by hurricanes, tsunamis, storm surges, overflowing rivers, and heavy rain. If you want coverage for these issues, look into flood insurance.
• Water damage caused by neglect or a lack of maintenance, such as failing to repair a plumbing problem or failing to keep the heat on during freezing temperatures.
• Water damage caused by intentional acts, such as starting a fire in your home or turning off the heat in the winter.
• Water damage caused by "earth movement," such as an earthquake, landslide, or mudslide. For example, if a pipe bursts as a result of an earthquake, the water damage is unlikely to be covered. If you want to be covered for earthquake damage, you must purchase a separate earthquake insurance policy.
• Water damage caused by a backed-up sewer or drain (unless you purchased special coverage for this problem.)
• Water damage from leaks from a swimming pool or other structures.
• Water damage caused by seepage or leaks in a foundation.
• The cost of repairing or replacing the source of the water damage, such as a faulty dishwasher or washing machine.
• Water damage caused by a sump pump failure or other related equipment. For these types of issues, you may want to consider sump and water backup coverage.

Main Causes of Home Insurance Claims

How Can I Protect My Home From Water Damage?

Taking preventative measures is one of the best ways to protect a home from water damage. It is critical to maintain routine maintenance and make repairs as soon as possible.

Remember that homeowners insurance only covers "sudden and accidental" water damage, not gradual problems or maintenance issues. If you have a problem, such as a leaking faucet, you should fix it as soon as possible.

Here are some additional steps you can take:

• Drain water heaters twice a year to help prevent sediment buildup.
• Install smart water leak detectors that will notify you via phone or email if a leak is detected. (Some detectors can turn off the water automatically to prevent damage.) Water-related claims decreased by 96 percent in a LexisNexis study of 2,306 U.S. homes that installed a Flo by Moen water leak detector compared to the two years prior to installation.
• Examine the hoses that connect to and from washing machines, dishwashers, water heaters, and refrigerators. If necessary, repair or replace any damaged hoses.
• Inspect your roof and replace any missing, rotten, or damaged shingles if necessary. Cleaning out your roof gutters is also a good idea. Clogged gutters can overflow, allowing water to pool near the foundation of a home and seep into the basement.
• Prevent frozen pipes if you live in an area that has extreme cold temperatures. Maintain a temperature of at least 50 degrees Fahrenheit and take other precautions, such as wrapping pipes in insulation. The American Red Cross has more information on preventing and thawing frozen pipes.
• Remove any snow from your roof to avoid ice dams. Snow can melt and freeze on roofs and in gutters, forming ice dams and causing damage to both the exterior and interior of homes. A roof rake can assist you in removing snow from the roof and reducing the possibility of snow dams.
• Remove leaves from your gutters every fall to avoid clogged drains, which can lead to ice dams in the winter.