Water damage is one of the most common and costly issues for homeowners. But did you know that flooding, seepage, sewer backups, and plumbing deterioration typically aren’t covered by standard home insurance policies? Understanding your policy’s limitations can save you from unexpected expenses and stress.
No one wants to face the chaos of an overflowing toilet, a backed-up sewer line, or a leaking ceiling. Water damage can cause just as much financial and emotional strain as a fire, earthquake, or hurricane—especially if your insurance doesn’t cover the damage.
How Common is Water Damage?
The Insurance Information Institute reports that water damage accounts for around 24% of all home insurance claims, with an average claim cost exceeding $12,000. Despite this, many homeowners are unaware of what types of water damage their policies cover.
Let’s dive into what’s covered, what’s not, and how to protect your home and finances from the risks of water damage.
Water Damage Covered by Standard Home Insurance
A standard homeowners insurance policy protects against 16 named “perils,” including fire, theft, windstorms, and hail. Water damage is covered if it results from a sudden, accidental event like:
- A burst pipe.
- Wind-driven rain entering your home.
- Ice dams causing water intrusion.
- Firefighting efforts or sprinkler system activation.
However, gradual damage caused by neglect or wear and tear isn’t covered. For example, if your roof leaks due to aging shingles, the resulting water damage won’t be reimbursed.
Key Coverage Highlights:
- Accidental Discharge or Overflow: Damage caused by pipes, water heaters, or appliances like dishwashers is typically covered (though replacing the appliance itself isn’t).
- Snow and Ice Dams: Water damage from the weight of snow or ice on your roof is covered.
- Mold and Mildew: If caused by a covered water incident, mold remediation may be partially covered.
- Vandalism: Malicious water damage to your home is covered.
Remember, your policy’s limits and deductibles affect how much you’ll pay out of pocket. Consult your insurance agent to ensure your coverage is adequate.
Water Damage NOT Covered by Standard Home Insurance
Some water damage scenarios are almost always excluded from standard homeowners insurance policies. Here are the four most common exclusions and how to address them:
1. Flooding
Flooding is the top natural disaster in the U.S., yet it isn’t covered by standard policies. Floodwater from heavy rain, storm surges, or rising rivers requires separate flood insurance, available through FEMA’s National Flood Insurance Program (NFIP) or private insurers.
Visit FloodSmart.gov to assess your flood risk, explore coverage options, and reduce costs.
2. Groundwater Seepage
Groundwater that seeps into your home through walls or foundation cracks isn’t covered. To prevent seepage, consider waterproofing your basement or installing a sump pump and French drains.
3. Sewage Backups
Sewage water overflowing into your home is excluded from standard policies. However, you can purchase a water backup rider or endorsement for additional protection.
Additionally, a service-line endorsement can cover damage to sewer and water lines from the street to your home.
4. Neglected Plumbing and Maintenance
Damage from poorly maintained plumbing systems, such as leaky toilets or dripping faucets, isn’t covered. Regular maintenance and prompt repairs are essential to avoid these costly problems.
Protect Your Home with Regular Maintenance
Preventing water damage starts with proactive care:
- Inspect your plumbing, roof, and appliances annually.
- Clean gutters and ensure proper drainage around your home.
- Schedule professional maintenance for plumbing, air conditioning, and water heaters.
For added peace of mind, work with a Trusted Choice® independent insurance agent to customize your coverage and ensure you’re protected from the unexpected.
Don’t let water damage drain your wallet. Take action today to safeguard your home and enjoy it worry-free!
Contact our team online to discuss your insurance needs.
