Is Water Damage Covered By Home Insurance?

Water damage is one of the most common reasons why homeowners make an insurance claim. But does homeowners insurance typically cover it? The answer depends on the specific policy and the cause of the damage.

To ensure that your policy covers water damage due to water backup, sewer backup, and sump pump failure, it is imperative that you speak to an experienced and knowledgeable insurance agent. Your agent can review your current homeowners insurance coverage and make sure that you obtain all necessary endorsements to provide the appropriate coverage.

What Causes Water Damage?

Water backup is when water flows into your home through a drain or a toilet due to a blockage in the main sewer line.

In addition, damage may be caused by a malfunctioning sump pump. Sump pumps are designed to pump water out of a basement or crawl space, preventing water damage. However, water can flood the home if the sump pump fails. Sump pump failures are not typically covered by the standard homeowners policy.  But, it is possible to find a policy that will cover such damage.

Things Not Typically Covered

Standard homeowners insurance policies do not typically cover damage from water backups caused by the following:

  • Tree roots: When searching for moisture underground, tree roots can enter older or cracked pipes, slowly causing extensive damage or blockages.
  • Aging plumbing systems: As plumbing systems age, they become more susceptible to backups and other problems. Leaky or burst pipes and faulty plumbing fixtures can also cause water damage.
  • Combined pipelines: If your city combines sewer and storm drainage lines, you may experience issues during a storm. Heavy rains can overwhelm the system and create water backup problems in your home.
  • Blockages in the sanitary main: City sewers can also become blocked over time, leading to water backing up into your home.
  • Sump pump failure: A malfunctioning or non-working sump pump could cause extensive damage to your home. Note that while a water backup endorsement may pay for damage caused by sump pump failure, it may not cover the cost of replacing the pump itself.
  • Weather-related issues: Heavy rain, floods, hurricanes, and snowstorms can also cause damage in a home. Water can enter a home through roof leaks, foundation cracks or flooding from nearby bodies of water.
  • Appliance malfunctions: Faulty parts, wear and tear, or poor maintenance can cause serious water damage. Dishwashers, refrigerators, washing machines and water heaters can cause water damage in a home.

Sewer and Drain Backups Cause Devastating Household Damage

Water damage from sewer and drain backups is a common cause of property damage. Water damage and freezing accounted for 19.9% of home insurance claims nationwide in 2020. The average homeowners insurance claim payout for water damage was $11,650 between 2016 and 2020.

How to Help Prevent Water Damage

The following steps can be taken to help prevent damage:

  • Keep gutters and downspouts clean and free of debris to ensure that rainwater is properly directed away from the foundation of the home.
  • Grade the soil around the foundation to help prevent water from pooling near the home, which can lead to leaks and water damage.
  • Regularly maintain plumbing and sewer lines by having a plumber perform routine inspections to identify potential issues and to clear out any blockages.
  • Avoid flushing inappropriate items down the toilet or pouring grease down the sink, as these can lead to clogs and backups.
  • Install a sump pump or replace an aging sump pump to help prevent basement flooding. Regular testing and maintenance of the sump pump is important to ensure it functions properly.

Water Damage May Cause Mold Damage

Water damage can lead to mold growth, which can cause serious health problems, especially for people with allergies or weakened immune systems. Mold can grow within 24 to 48 hours of damage and spread quickly throughout a home.

The cost of mold remediation can be high! It can range from a few thousand dollars to tens of thousands of dollars, depending on the extent of the damage. Unfortunately, mold damage is often not covered by a typical homeowners insurance policy. Unless it is caused by a covered peril, such as a burst pipe or accidental overflow of a plumbing fixture.

Homeowners may need additional coverage or endorsements to ensure appropriate coverage for water and sewer backup-related mold damage.

How to Get Coverage for Water Backup

Homeowners can purchase an endorsement that provides water and sewer backup coverage. It’s essential to check with your insurance agent to ensure that you have coverage before a damage-causing incident. The cost of water backup endorsements varies based on the level of coverage and your specific policy.

Making Sure You’re Covered

Reviewing your policy annually with your agent and purchasing any necessary endorsements for water backup is crucial to ensure you’re covered in a water damage incident.

For a free review and quote on your homeowners insurance, contact RMC Group today. Speak with a licensed insurance agent at 239-298-8210 or [email protected].