Does homeowners insurance cover water damage that was already there?

We just bought our first home and were cleaning and moving things around when we slid the refrigerator out. The laminate flooring behind it was warped and popped up easily. We found what looks like water damage underneath, and it’s pretty clear it didn’t just happen. Our insurance company is telling us it’s pre-existing and they won’t cover it. Is this a normal answer from any insurance company, or just ours?

Unfortunately, your home insurance won't cover damage that was already there when you bought the house, and your insurer’s answer is pretty standard. Here’s why and what your options might be.

Homeowners insurance is designed to cover sudden and accidental damage while you're the policyholder, not damage that was already there. Insurance typically excludes things like long-term damage or wear-and-tear, issues coming up from neglect or poor maintenance, and things that happen outside the time frame of your coverage (and ownership, in your case).

That doesn’t make the situation any less stressful, especially as a first-time homeowner. The good news is there are some practical steps you can take right now.

First, get the area dried out and stop any further damage from spreading. Water damage has a way of getting worse if it sits, so the sooner a contractor can assess it, the better. Get estimates, take photos, and hold onto every receipt and document related to the repair. Having a paper trail of what was fixed and when is smart homeownership. It can also be helpful if a potential claim comes up in that area of your home at a later time, and you need to show that you've fixed any prior issues.

The problem may have been hidden behind the refrigerator or under that flooring for years without anyone realizing it was there. If you do think it was known to the seller and undisclosed, it’s probably worth a reaching out to your real estate agent and/or home inspector for their professional advice.

One thing to keep in mind as a new homeowner: even when damage is covered by insurance, filing a claim isn’t always the right call. If the repair cost is close to or under your deductible, paying out of pocket and keeping your claims history clean is often the smarter move.