Does homeowners insurance cover water damage?
Three kinds of water, three kinds of coverage
Insurers sort water by where it came from. Knowing which bucket your loss falls in tells you which policy, if any, responds.
| Source of water | Coverage that applies | Notes |
|---|---|---|
| Burst pipe, failed supply line, appliance or water heater | Standard homeowners policy | Covers the resulting damage, usually not the failed part itself |
| Rain through a roof or window damaged by wind or hail | Standard homeowners policy | A separate wind, hail or hurricane deductible may apply |
| Rising water: river, surge, flash flood, surface runoff | Flood insurance | NFIP or private flood; not covered by homeowners insurance in any state |
| Sewer, drain or sump pump backup | Water backup endorsement | An inexpensive add-on with its own limit |
| Seepage through foundation walls or floor | Usually none | Treated as groundwater or maintenance |
| A leak that went on for weeks or months | Usually none | Policies exclude continuous or repeated seepage |
Flood insurance
Flood coverage is sold separately, through the National Flood Insurance Program or private insurers. NFIP policies generally take effect 30 days after purchase, so they can't be bought as a storm approaches. They cover the building and contents under separate limits, and they pay very little for finished basements.
Hurricane, wind and hail deductibles
In many coastal states, policies apply a percentage deductible to hurricane or named-storm losses, commonly 1 to 5 percent of the home's insured value rather than a flat dollar amount. Hail-prone states often have a similar wind and hail deductible. Check your declarations page so the number is not a surprise.
Mold
Mold is usually covered only when it results from a covered water loss, and many policies cap the amount. Mold from humidity or a long-term leak is excluded. Drying the home quickly is the best protection for both the house and the claim.
How to protect a claim
- Stop the water and prevent further damage; every policy requires it
- Photograph and video everything before cleanup
- Report the loss promptly and note your claim number
- Keep damaged items until the adjuster has seen them
- Get the restoration company's drying log and itemized scope
- Know that only a licensed public adjuster or attorney may negotiate for you; a contractor may not
Rules vary by state
Deductibles, deadlines and consumer protections differ. Your state's insurance department explains your rights and takes complaints. For state specifics, see your state page, or our guide to water damage coverage in Texas.
Questions
Does homeowners insurance cover a flooded basement?
It depends on the cause. A burst pipe is covered. Groundwater and surface flooding are not, and a sump pump or sewer backup is covered only with a water backup endorsement.
Is water damage from rain covered?
Yes, when a storm damaged the roof, siding or a window and rain came in through that opening. Rain that leaks through a worn-out roof, or water that rises from the ground, is not.
Do renters need their own coverage?
Yes. The landlord's policy covers the building, not a tenant's belongings. A renters policy covers your contents and often a hotel stay.
Sources and further reading
This guide is general information for homeowners, not legal, insurance or safety advice for your situation. Check your policy and follow local codes.
