Does Homeowners Insurance Cover Water Damage

Many consumers ask the question, "Does homeowners insurance cover water damage?" There is no simple answer to this question, since homeowners insurance policies vary widely in their coverages and exclusions. Typically, standard homeowners insurance policies do not cover flood, sewer back-ups, or seepage due to ground water. However, additional coverage can be purchased to insure your home against these events, and some types of water damage are covered under most standard homeowners policies.

Water damage caused by storms is typically covered under a standard homeowners insurance policy, as is the water damage resulting from firefighting methods (although usually this is considered part of the initial fire damage by insurance adjusters). Additionally, most standard policies pay benefits for water damage caused by frozen pipes. Flood insurance is available in most areas as well, although premiums for properties in high-risk regions can be prohibitively expensive. High-risk flood coverage can cost thousands of dollars per year; for lower-risk areas, annual costs usually range between $100 and $500. Flood insurance prices are set by the federal government, but are administered through private insurance companies. Since the cost of this insurance is uniform regardless of your agent, the need for comparison shopping for flood coverage is eliminated; you can usually obtain flood insurance through your regular homeowners insurance provider.

Many companies offer optional riders to your homeowners insurance policy that provide sewer backup coverage. This covers the water damage and other costs of cleaning up your home if the sewer system backs up through your drainage pipes. The additional cost of sewer backup coverage is typically around $25 per year, depending on your company and location; this is a real bargain compared to the cost of cleanup after a qualifying event. For homeowners with septic tank systems, cleanup costs after a backup are usually covered by the standard homeowners insurance policy.

So, is water damage covered by your homeowners insurance policy? It depends on what additional coverages you have purchased and what caused the water damage. Consult the details of your policy to be sure your home is covered against these types of damage.

Last Modified: 29 November 2009