Does Homeowners Insurance Cover Water Damage?
The short answer? It depends. Standard HO-3/HO-5 policies generally cover “sudden and accidental” water discharge from inside the home (plumbing, HVAC, fire sprinklers, or appliances), but exclude flood from outside sources and most gradual, maintenance-related issues. Freezing-related bursts are typically covered only if you kept heat on or properly shut off and drained systems while away (Insurance Information Institute; NAIC). Water damage is also a frequent and costly homeowners claim—about 1 in 60 insured homes files a water damage or freezing claim in a typical year, and average paid losses exceed $10,000, with severity trending upward in recent years (Triple‑I statistics; LexisNexis Home Trends). Note that heavier downpours are increasing in many U.S. regions, expanding urban/pluvial flood exposure beyond mapped zones—yet flood is not covered by homeowners insurance (National Climate Assessment).
What Water Damage Does My Homeowners Insurance Cover?
Policies typically cover resulting damage from a sudden, internal water release you could not reasonably prevent—think a burst supply line or accidental overflow. Dwelling coverage applies to the structure (e.g., drywall, floors), and personal property coverage applies to belongings. Many insurers also pay for necessary “tear-out” to access and fix a covered leak while excluding the worn or failed part itself (for example, the old pipe or hose). Coverage is subject to deductibles and policy terms; freezing coverage often requires you to maintain heat or properly winterize when away (Triple‑I; NAIC).
Some covered scenarios include:
- Plumbing mishaps (burst or freezing‑related pipe, ruptured supply line) when heat was maintained or systems were properly drained (Triple‑I).
- Water damage from extinguishing a fire (the fire is a covered peril and resulting water damage is typically covered).
- Leaking roof interior damage when a covered peril creates an opening (e.g., wind/hail) as opposed to wear, deterioration, or poor maintenance (NAIC).
- Appliance overflow or accidental discharge (e.g., washing‑machine supply line burst or A/C condensate overflow) if sudden and accidental (Triple‑I).
- Vandalism that causes interior water release or damage, where vandalism is a covered peril under your policy.
What Water Damage Is Not Covered by My Homeowners Insurance?
Coverage turns on the cause. Insurers generally pay for resulting interior damage from a covered event, but not to replace the worn-out component that failed. Rain that enters through a roof or wall without a covered cause of loss creating an opening is typically excluded. Most policies also exclude damage from wear and tear, deterioration, or neglect, and many specify that “continuous or repeated seepage or leakage” is not covered—some modern forms set time limits (for example, no coverage after 14 days of continuous leakage). Anti‑concurrent causation language in many policies can bar coverage when an excluded cause (e.g., flood) contributes to the same loss, even alongside a covered cause (Triple‑I; NAIC).
A major source of water damage that is not always covered is flooding, including flooding from natural causes like rain or river overflow. For that, you’ll need separate flood insurance coverage. Under the National Flood Insurance Program (NFIP), building coverage for most 1–4 family homes is capped at $250,000 and contents at $100,000; policies have a standard 30‑day waiting period, exclude Additional Living Expenses, and provide limited coverage for items in basements/below grade. NFIP also includes up to $30,000 of Increased Cost of Compliance (ICC) for mandated mitigation after certain losses (FloodSmart; CRS NFIP primer). If your property is in a FEMA Special Flood Hazard Area and you have a federally regulated or insured mortgage, lenders must require flood insurance; timelines and enforcement are detailed in FEMA’s purchase guidelines (FEMA Mandatory Purchase). Private flood alternatives may offer higher limits and sometimes Additional Living Expenses; compare both options carefully (CRS).
Some instances where you won’t be covered for water damage include:
- Flooding from rain, river overflow, storm surge, overland surface water, or tsunami (requires a separate NFIP or private flood policy) (FloodSmart).
- Outdoor and land water damage (lawn, driveway) and other exterior property not covered by the homeowners policy.
- Sewer backups
- Seepage
Does Homeowners Insurance Cover Mold?
Mold can pretty seriously affect the health of both your family and your home’s structure. Your home insurance policy should cover mold if the mold grows as a result of covered water damage. For example, if an air-conditioning system overflow eventually leads to mold growth, your insurance will cover the removal because it is an extension of covered water damage. You can also purchase an additional endorsement for extra mold coverage.
How Do You Prevent Water Damage?
There are a few ways you can be proactive about potential water damage to your home — saving you money and the headache that can come with filing an insurance claim.
- Disconnect hoses and maintain vegetation. Water left in a hose can freeze, back up, and cause your pipes to burst, while roots from trees and shrubs can wrap around your pipes and break them.
- Clear gutters and downspouts. Clearing these water collectors of any debris will prevent backup and clogs.
- Maintain appliances. Regularly checking for leaks and maintaining the condition of appliances like dishwashers and laundry machines will help prevent sudden leaks or overflows.
- Install water detection devices. These small devices have sensors that can sound an alarm when they come into contact with moisture. They’re great for catching smaller leaks that you’re likely to miss.
- Monitor the water bill. If you notice a sudden spike in your water bill, there’s a good chance you have an unattended leak — whether its hiding in the basement or in a pipe under your lawn.
What’s Next?
- Check out our review of the best homeowners insurance providers and grab a few quotes to make sure you have the coverage you need.
- For appliances and systems that water damage coverage won’t protect, look into home warranties.
- If it’s time to file for that burst pipe, here’s everything you should know about insurance claims.
