Does Homeowners Insurance Cover Water Damage?
Homeowners insurance covers water damage in certain circumstances. Standard policies pay for water damage from burst pipes or appliance failures but exclude flood and maintenance-related issues.
Does home insurance cover water damage?
Yes, but only when it’s caused by a covered peril. Even the best homeowners insurance won’t pay for water damage caused by flooding, neglect, intentional damage, or poor maintenance. Homeowners insurance typically covers water damage from:
- Burst pipes or plumbing issues
- Rain or snow that enters the home suddenly
- Accidental overflow from appliances like washing machines
- Vandalism
- Water damage caused by a roof leak (but not always repairs to the roof itself)
When home insurance covers water damage
Coverage availability may vary depending on the type of homeowners policy you have, but water damage is usually covered if it's sudden and accidental in nature; typically, this means it's coming from the top down, like rain or snow. Home insurance also covers water damage caused by burst pipes, sprinklers and accidental overflow from appliances.
A peril is simply the cause of damage. Home insurance policies are written as either named peril or open peril.
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Named peril policies cover your home and belongings only for the causes of damage specifically listed in the policy, usually about 16. If you file a water damage claim, you must prove the damage was caused by one of those listed perils.
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Open peril policies are broader. They cover all types of dwelling damage unless the policy specifically excludes the cause. For a water damage claim, you generally only need to show that an excluded cause (like flooding) did not cause the damage.
💡 If your budget allows, an open-peril policy can offer stronger protection against water damage and fewer coverage gray areas.
Many homeowners insurance providers cover mold and fungi removal — or offer mold remediation insurance as a policy add-on. Mold insurance covers the cost of cleaning, testing and removal of mold (up to your coverage limit). In order for homeowners insurance to cover mold remediation, the source of the mold must be a covered peril.
On an HO-5 policy (open perils) the following perils (cause of loss) are not covered:
- Damage from a frozen or broken pipe and systems in vacant dwellings
- Damage to foundations or pavements from ice and water weight
- Theft from a dwelling under construction
- Vandalism to vacant dwellings
- Latent defects, corrosion, industrial smoke, pollution
- Settling or wear and tear
- Pets, other animals and pests
- Weather conditions that aggravate other excluded causes of loss (flood)
- Government and association actions
- Defective construction, design and maintenance
Homeowners Policy Endorsements Guide | The Zebra
Explore homeowners insurance policy endorsements to customize your coverage. Learn about add-ons like earthquake, sewer, and mold to protect your home.
When does homeowners insurance not cover water damage?
A standard homeowners policy does not cover flooding, sewer backups, acts of negligence or poor maintenance. Let’s assess each of these perils and how to prevent further damage to your home or add additional coverage.
❌ Flood damage
Homeowners insurance does not cover flood damage due to the high cost of flood losses. To be protected, you’ll need a separate flood insurance policy, typically through the National Flood Insurance Program (NFIP). Backed by FEMA, NFIP policies cover up to $250,000 for your home and $100,000 for personal property.[1]
❌ Sewer backup and sump pump failure
Most standard homeowners policies exclude sewer backup damage, even though repairs can be costly. Sewer backups can happen due to aging pipes, clogs, or tree root intrusion.
Coverage is available through a sewer backup endorsement, which adds protection for damage caused by sewer or drain backups. This endorsement often also covers sump pump failure, which can lead to basement flooding if the pump stops working.
❌ Neglect and poor maintenance
Water damage caused by neglect or poor maintenance is not covered, and there’s no add-on policy to change that. If an issue develops slowly and is ignored, insurers may deny the claim. Common examples include:
- Failing to protect pipes during freezing temperatures
- Not allowing pipes to drip in cold weather
- Water damage in a vacant home, such as while you’re on vacation
We'll help you find home coverage that meets your needs and budget.
How to file a home insurance claim for water damage
The claims process is similar regardless of what caused the damage. As soon as you notice water damage, take photos of the affected areas and contact your insurance company to start a claim.
Once your claim is open, an insurance adjuster will typically:
- Inspect the damage and identify where the water came from
- Estimate repair costs and provide a settlement estimate
In some cases, pinpointing the cause of water damage can take time, especially if more than one issue may be involved. That’s normal and doesn’t mean your claim is at risk. Policies with broader coverage, like open-peril policies, can make this step easier by reducing what needs to be proven, while a thorough investigation helps ensure the outcome is fair.
⚠️ Water damage can happen to any home
About 1 in 67 homes has a claim involving water or freezing each year, making water damage the second-most-common type after wind and hail.[1] A little preparation can go a long way.
When to File a Homeowners Insurance Claim
Knowing when to file and when not to file a homeowners insurance claim can save you money in the long run. Don't put your home insurance coverage at risk by filing claims when you shouldn't!
Do rates increase after a water damage claim?
A water damage claim on your record can be quite impactful; on average, rates were hiked by 19% after a water damage claim. Water damage causes the fifth-highest increase in premiums nationally, the first being fire claims. See the table below for data on up to two water damage claims.
Updating data...
| Claims | Avg. Annual Premium | % Increase |
|---|---|---|
| No Claims | $2,802 | 0% |
| 1 Liability Claims | $3,343 | 19% |
| 2 Liability Claims | $3,942 | 41% |
Source: The Zebra
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
If you're looking for cheap homeowners insurance after a water damage claim, take a look at some of the post-water damage claim rates from top insurance companies below to get started in your search. Remember that our rate-gathering methodology likely does not match your own homeowners profile exactly.
| Insurance Company | Annual Rate After Claim |
|---|---|
| Allstate | $2,028 |
| American Family | $2,686 |
| Farmers | $1,756 |
| Liberty Mutual | $1,702 |
| Nationwide | $1,542 |
| State Farm | $1,464 |
| Travelers | $1,753 |
| USAA | $1,528 |
State Farm, Nationwide, and USAA (for those who qualify) top our list for the cheapest companies after a water incident. If you're concerned with the affordability of your rate after a water damage claim, take the time to shop around and compare options. You can get started below using The Zebra's comparison tool below to compare quotes side-by-side and see how much you can save.
Shop around for the best deals on home insurance.
Home insurance and water damage FAQs:
Home insurance claims
Helpful answers to common coverage and claims questions
How do I dispute a homeowners insurance claim?
Pekin's service with big claims
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Can I use my car insurance to damage to garage door?
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.