Does homeowners insurance cover water damage?

Waking up to a flood in your basement due to a leaking water heater is anything but pleasant. One of the first questions you’ll likely ask yourself is, does my homeowners insurance cover the water damage?

A standard homeowners insurance policy may cover the costs associated with the damage. An agent can help you know for certain if your policy covers your situation.  If it does cover the damage, they can start the process of filing a water damage insurance claim. 

However, not all types of water damage are covered.  Under many standard home insurance policies, if water damage occurs suddenly or accidentally from a source inside your home, such as a busted pipe, it will often be covered. If the water comes from outside your home, it may not be covered by your standard policy. However, you can seek special protection from flood-related damages with flood insurance, which is a separate policy.

Types of water damage not covered by homeowners insurance

Whether your homeowners insurance covers water damage depends on the source of the water that caused the damage. Here are three instances in which your homeowners policy will not provide coverage:

1. Maintenance problems that have not been attended to. For example, your homeowners insurance will likely not cover water damage that is the result of a faulty sink that has been leaking for several months without being addressed by the homeowners.
2. Repair or replacement of the actual source of the water damage. If your washing machine caused water damage to the floor of your laundry room, your homeowners insurance will not cover the costs to repair or replace the machine. However, it will typically cover the costs to repair your floors.
3. Issues resulting from a weather-related flood. Flood damage will not be covered by your homeowners insurance policy and will require separate flood insurance coverage.
4. Water backup damage. If water backs up into your living space through sewers or drains, or if continuous exposure to water damages your foundation, coverage can be excluded from your standard home owners policy. Water backup endorsement can cover the cost of damage from these kinds of issues.

What type of water damage is covered by homeowners insurance?

So, when will home insurance cover water damage? Homeowners insurance may cover water damage in cases where the damage is considered sudden and accidental. Burst pipes, overflowing toilets and broken washer hoses are all examples of water damage that may be covered. If mold forms as a result of these incidents, damage it causes may also be covered. Generally speaking, if the incident was unexpected and could not have been prevented by adequate preparation, there’s a chance homeowners insurance may cover it.

To learn more about homeowners insurance to protect your house and your belongings, take a look at our homeowners coverage page.

Preventing water damage

Even if the damage is covered by your policy, it’s likely better to avoid it in the first place when possible. The following tips can help prevent water damage in your home:

• Prepare your home for cold periods by insulating pipes and cleaning out gutters. This can help prevent pipes from freezing and bursting and may stop ice dams from forming around your roof and gutters.
• Regularly check caulking around doors, windows and bathrooms for signs of degradation and replace wherever necessary. 
• Monitor your roof for signs of damage, have repairs made promptly where needed, and be sure to have snow, ice or debris removed if necessary. Homeowners insurance may cover water damage from rain and other elements in some instances, but properly maintaining your roof can help avoid damage in the first place.
• Inspect, clear, and replace hoses going to and from washing machines, dishwashers, water heaters, and refrigerators.
• Be careful to ensure water supply lines are clear and open. If they run under other objects, make sure they are not crimped or pinched.
• Drain water heaters twice a year to prevent sediment buildup.
• Consider smart home water leak detection devices for your home. These devices can help discover and alert you to water leaks throughout your home, helping you avoid potentially significant water damage. Some sensors can also identify conditions that may result in freezing pipes, allowing time for preventative actions to be taken.
• Other smart options for your home include smart thermostats, which connect through WiFi to the internet and allow you can manage your home’s temperature online / through an app. Being able to set your thermostat remotely may help prevent your home from becoming cold enough for pipes to freeze, even when you aren’t home.

For more tips on protecting pipes in the winter, read these articles on winterizing your home and preventing frozen pipes.

What does water damage look like?

Being able to identify potential water damage could save you a lot of hassle and money. Water damage tends to leave telltale signs. When moisture builds up behind walls, it may cause paint to bubble or crack while dark discoloration and spots of mold can start to form. You may also notice signs of ceiling water damage like sagging and bowing. Be on the lookout for surfaces that have become discolored or misshapen, and take a closer look at areas of your home that begin to smell musty.

Water damage vs. flood damage: An important distinction

It’s important to keep in mind that water damage and flood damage are two different things. Distinguishing the two can be confusing, which is why it’s a good idea to read your insurance policy closely, or seek help from your agent to clear up any confusion.

How to file a water damage insurance claim

You need to react quickly to water damage but it’s important to be thorough when filing a claim. Carefully document all instances of damage, capturing problem areas with photos and videos. Once you’ve assessed the damage, reach out to your insurance agent to file a claim or file a claim online. Be sure to share the documentation of damage you captured and include receipts for items you purchased in response to damage (tarps, buckets, etc.).

If you were unable to remain in your house due to the damage, you should also share receipts for things like food and temporary housing. Lastly, make an appointment with an insurance adjuster. This is a trained professional who can come to your home, inspect the damage and assess how much your insurance will pay. Remember, an agent can help guide you through the process.

Nationwide’s smart home program

Learn more about how to help protect your home from water damage through Nationwide’s smart home program.