Home Insurance and Water Damage?

Water damage is one of the most common and costly issues homeowners face. Whether it’s a leaky roof, a burst pipe, or a flooded basement, water can cause significant damage to your home and belongings. But when disaster strikes, will your homeowners insurance cover the costs? Costs of repairing damages will most likely be covered if it is a problem from inside your home and is sudden and accidental.

In this post, we’ll explore what types of water damage are typically not covered by home insurance.

1. Maintenance Problems That Have Not Been Attended To

• Why It’s Not Covered: Homeowners insurance is not designed to protect against issues that result from negligence or poor maintenance. If water damage occurs because of a long-standing issue, like a slow leak from a pipe, failing to address that problem over time would likely lead to a denied claim.

• Example: If a small leak under your sink has been dripping for months, and you haven’t repaired it, the resulting damage to the floors, cabinets, and walls would not be covered because it is considered a maintenance issue.

2. Repair or Replacement of the Actual Source of the Water Damage

• Why It’s Not Covered: While insurance policies typically cover the damage caused by water, they don’t cover the cost of fixing the source of the water damage. The logic behind this exclusion is that the source of the problem—like a broken pipe or a malfunctioning appliance—is a maintenance issue. Insurance helps with the aftermath (the damage), not the repairs needed to stop the problem at its source.

• Example: If a pipe burst and floods your living room, your homeowners insurance will likely cover the cost to repair your flooring and walls, but you’ll be responsible for fixing or replacing the burst pipe itself.

3. Issues Resulting from a Flood

• Why It’s Not Covered: Standard home insurance policies typically exclude flood damage. Flooding is considered a separate peril that requires its own policy. Floods are often widespread and cause extensive damage, which is why insurers treat it differently. If you live in an area prone to flooding, you would need to purchase flood insurance to be protected.

For questions or help finding a policy feel free visit our office or contact us today.