Does Homeowners Insurance Cover Water Damage?

Short answerHomeowners insurance often covers sudden, accidental water damage, such as a burst pipe or an overflowing toilet, but it depends on your policy. Flood damage, gradual leaks, seepage and sewer backups are commonly excluded or need separate coverage. Check your policy and call your state insurance department with questions.

What is often covered

State regulators and the Insurance Information Institute describe this general pattern for standard policies:

Burst pipes and sudden plumbing failures
A toilet overflow
Wind-driven rain and damage from ice dams on the roof (2009 Insurance Information Institute release)

What is commonly not covered

These usually need separate coverage or aren't covered at all:

Flood, surface water and overflowing rivers, which need a separate flood policy
Water backing up through sewers or drains, unless you've added that coverage
Gradual leaks and seepage, often treated as a maintenance issue

The damaged pipe vs. the damaged room

The sample HO-3 form (ISO's October 2000 edition, published by the Insurance Information Institute) says the accidental-discharge coverage doesn't include loss to the system or appliance the water escaped from. So the ruined drywall and the broken pipe may be treated differently.

A rule of thumb

A 2009 Insurance Information Institute release puts it this way: water from the top down, such as rainfall, is generally a homeowners claim; water from the bottom up, such as a rising river, needs flood insurance. Your policy language still controls.

After a water loss

Stop the water if you safely can, take photos, and contact your insurer. EPA advises drying water-damaged areas and items within 24 to 48 hours to prevent mold.

Check your policy

Read your own policy, including any endorsements, and ask your agent or insurer how it applies to your situation. Your state insurance department can answer questions about coverage and take complaints. This page describes general patterns, not what your policy will pay.

Common questions

Does homeowners insurance cover a slow leak?

Usually not. The Texas Department of Insurance says policies usually won't cover damage from gradual leaks. Damage that is sudden and accidental is treated differently, so check your wording.

Is flood insurance included in homeowners insurance?

Generally no. FEMA and the NAIC say homeowners policies don't cover flood. Flood insurance is a separate policy, and FEMA says there is typically a 30-day wait before it takes effect.