Does homeowners insurance cover water damage? What's covered and what isn't

What water damage is usually covered?

Homeowners policies cover damage from a list of perils, and the one that matters here is usually worded as a sudden and accidental discharge of water from a plumbing, heating or air conditioning system or a household appliance. In plain terms, water that escapes all at once from something inside the house. Common examples:

• A pipe that bursts, including one that froze in a cold snap while the heat was on.
• A washing machine or dishwasher hose that splits.
• A water heater that ruptures.
• An overflowing toilet, sink or tub.
• Rain that comes in through a roof a storm just damaged.
• Water the fire department used to put out a fire.

The policy pays for the damage the water did: the soaked drywall and flooring under Coverage A, and your furniture, rugs and clothes under Coverage C. The broken part itself, such as the pipe or the worn hose, is often not covered. Many policies do pay to tear out a wall to reach the leak and put it back.

What water damage isn't covered?

• Flood: water that rises from outside, from rain, a river, a storm surge or an overflowing drainage ditch. That needs separate flood insurance, through the national flood program or a private insurer.
• Slow leaks and seepage: a drip under the sink that rotted the cabinet over months. Insurers treat that as wear and upkeep, not an accident.
• Sewer or drain backup: water that comes up through floor drains or toilets from the sewer line. Most policies only cover it if you bought a water backup endorsement.
• Groundwater coming through the foundation or basement walls.
• Mold, unless it came from a covered leak, and even then many policies cap it at a low figure.

The line between a sudden leak and a slow one is where most water claims are argued. If a pipe burst last night, say so. If you don't know how long something leaked, say you don't know rather than guessing. A plumber's note on what failed and why is the best evidence you can give.

Flood vs water damage: why the cause matters

Two basements can look the same after a storm and get opposite answers. If a pipe burst, the home policy pays. If water came in from the yard, it is a flood, and only flood insurance pays. Flood policies also cover less inside a basement than most people expect, so check your policy before you count on it for finished rooms or the things stored down there.

If you have both kinds of cover and the cause is mixed, report the loss to both insurers and let each adjuster decide what is theirs.

Does renters insurance cover water damage?

Yes, for your belongings, on the same terms: sudden and accidental water from a pipe, appliance or the unit upstairs. The building itself, its walls, floors and fixtures, is the landlord's to insure. Renters policies exclude flood too, and renters can buy flood cover for their contents on its own.

If the leak started in a neighbor's unit, your own policy still pays you first, less your deductible. Your insurer may then go after the neighbor's insurer for the money. Our guide to filing a renters insurance claim goes through the steps, and what to do if the landlord says it isn't their problem.

How to file a water damage insurance claim

1. Stop the water. Shut off the main valve or the valve to the appliance, and turn off power to wet areas if it's safe.
2. Take photos and video of the water, the source and every damaged room before anything is moved.
3. Call your insurer, or report it online, the same day if you can. Ask for a claim number and your adjuster's name.
4. Dry the house out. Your policy expects you to stop further damage, and a water removal company or fans and a dehumidifier count. Keep every receipt; those costs are usually part of the claim.
5. Keep damaged items until your adjuster has seen them or says you can throw them out. Photograph anything you have to remove for health reasons.
6. List everything that was ruined, room by room, with what it would cost to replace today.

Mold can start within two days, so drying out shouldn't wait for the adjuster's visit. Ask your adjuster what they need before you rip out flooring or drywall, and keep a small cut sample if you do.

What a water damage claim pays for your belongings

Your things are paid at replacement cost or actual cash value, depending on your policy, minus your deductible. A burst pipe in a finished basement might look like this:

The difference between those two ways of paying is explained in actual cash value vs replacement cost.

Making the list when everything is wet

Soaked boxes in a basement are the hardest part of a water claim to list, because nobody remembers what was in them. Open each one and photograph what's inside before it goes to the curb. For things already thrown out, our guide to making a home inventory list after a loss shows how to rebuild the list from order history, bank statements and old photos.

Where Indemnia helps

Indemnia turns photos of damaged rooms into a list of items with today's prices, and finds past purchases in your email receipts, so the list your adjuster asks for gets built while the fans are still running.