Does homeowners insurance cover water damage leaking plumbing?

According to the Insurance Information Institute, almost one in every 50 houses may have water damage each year. Frozen pipes, storm damage, and broken plumbing systems are just some things that might cause water damage.

Most homeowner's insurance plans usually cover water leak damage. However, there are a few exceptions. Some cases are deliberately excluded from standard regulations, such as slow leaks. It's critical to understand what your insurance policy covers and what it doesn't cover if you have a water damage claim.

What sorts of water damage does insurance cover?

Water damage is a regular occurrence in homes, and several factors can cause it. There are, however, only a few water damage scenarios that your homeowner's insurance will fully cover. The following are examples of water damage:

• Water leakage that occurs unexpectedly or unintentionally
• Water damage caused by storms
• Sewer backups or overflows are unavoidable (you may need an endorsement)
• Damage caused by flooding (if you have flood insurance)
• Water leaks and water damage are only covered by homeowners insurance if the cause is abrupt or accidental. For example, if a pipe bursts out of nowhere, your insurance coverage will most likely cover the damage. Homeowners' insurance does not cover water damage that develops gradually and over time.

In addition, some homeowner's insurance policies will cover the costs of water damage. As a result of the initial harm, other injuries ensue. For example, if a pipe bursts and the resulting water damage destroys an adjacent wall, you may be eligible for reimbursement for the cost of repairs.

However, not every homeowner's insurance policy covers the resulting damage, so double-check the fine print to see what's covered. If the subsequent damage is covered, keep in mind that the source of the water leak will not be covered. As a result, if a pipe bursts and causes damage, the cost of a replacement pipe may not be covered.

What kinds of water damage aren't covered by your insurance policy?

The most common sort of water damage that insurance does not cover is gradual damage. Unlike accidental or unexpected harm, normal wear and tear cause cumulative damage that is not covered by insurance. Your home's pipes and plumbing system deteriorate over time, making them more vulnerable to water leaks.

There are a few frequent instances that aren't covered by insurance when it comes to gradual deterioration. Here are a few examples:

• Lack of maintenance: If you had a faulty faucet and failed to repair it, it would not be covered if it caused substantial water damage in the future.
• Water damage is not covered by insurance if a pipe bursts due to progressive wear and tear.
• Mold and rotting: Mold, rotting, and corrosion caused by water leaks in your home are not covered.
• Your standard insurance policy does not cover water seepage from a break in your home's foundation.
• Roof damage: If a tree falls on your roof and causes water damage, you will be covered for roof repairs as well as water damage. However, any resulting damages, such as mold, are unlikely to be reimbursed.
• Regardless of your coverage limitations or the type of policy you have, nearly every homeowner's insurance policy excludes coverage for wear and tear and progressive damage. Some policies, on the other hand, may cover gradual deterioration.

You'll have to verify the particular wording in your policy statements to see if your insurance covers progressive damage. An insurance agent can assist you in deciphering the policy's language and determining what is and is not covered by your policy.

Why hasn't coverage been granted?

It's possible that if you file a claim for water damage, your claim will be denied. The fact that the deterioration was gradual is one of the most common reasons water leak claims are refused.

Water damage can appear to be sudden when it has been occurring for a long time. Pipes and plumbing systems are hidden within the walls of your home and are difficult to see. If a leak has been slowly accumulating, you're unlikely to notice it until there's been significant water damage.

Furthermore, if you have an endorsement policy, you may only be covered for particular types of water damage. Whether your claim is refused, check with your insurance company to see if there was an add-on policy that would have covered the damage. Consider switching to new insurance with more significant coverage alternatives if they don't endorse water damage.

You can always request a second opinion if you believe your water damage claim should have been accepted based on your coverage. Determine whether the claim should be reviewed by an independent insurance professional or a consumer advocacy organization. You can also make a formal complaint with your state's insurance commissioner.

Tips for submitting a successful insurance claim for a water leak

Here's how to improve your chances of filing a successful claim if a water leak damages your home:

Photograph the initial and subsequent damage of the leak.

To avoid more damage, stop the leak and perform minor repairs.

Contact a contractor or an independent loss assessor to evaluate the amount of the damage and the cost of repairs. Also, make sure to maintain your home regularly throughout the year. Keep receipts for repairs and upkeep so you can show them to your insurance carrier if you need to file a claim.

Key Takeaways:

• Water damage can be covered by home insurance coverage, whether it occurs suddenly or accidentally.
• The majority of insurance policies do not cover water damage that develops over time.
• Examine your policy's particular wording to see if your insurance covers progressive deterioration.
• You may need an endorsement to acquire coverage for water damage.
• Record the damages, make minor repairs, and have the damage assessed by a contractor or loss assessor to successfully file a water damage claim. Don't be afraid to enlist an experienced insurance attorney.
• If your claim is refused, you should contact an experienced home insurance lawyer for help. Water damage coverage will probably require an endorsement policy. Maintenance and proper servicing of potential causes of water damage are always the best practices, as is examining your coverage to identify where gaps might need to be filled with endorsements or add-ons.