Under most standard home insurance policies, if water damage occurs suddenly or accidentally due to an internal source in the house, such as a broken pipe, homeowners insurance is likely to cover it. However, if the water comes from outside your home, your standard policy won't provide coverage. Generally, if the backup originally occurred outside your property, such as on the street, your insurer could cover the resulting damage. But if water has accumulated on your property, standard home insurance policies don't usually provide protection.
As an expert in home insurance, I'm often asked if additional coverage is needed for water damage. The answer is yes, depending on the type of water damage and where it originated. Home insurance generally covers sudden water damage or damage caused by a hazard covered in your policy. However, damage caused by natural floods or negligence is generally never covered.
Damage caused by overflowing water from appliances, including washing machines, dishwashers, HVAC units and water heaters, is often covered by home insurance. You can purchase additional sewer coverage to add to your home policy to intervene if you ever face this problem. You can also buy a floating policy or an endorsement that adds additional mold coverage to your home insurance policy. This is useful if the insurance adjuster's coverage quote is too low and provides you with an opportunity to negotiate with your insurer.
For example, if a bathroom sink pipe leaks over the months and it can be proven that the damage was due to poor maintenance, home insurance may not help pay for them. Standard home insurance policies cover water damage if it is sudden and internal, with the requirement that the water has never touched the outside ground. It's important to contact your insurer as soon as possible once you discover water damage in your home. Each year, approximately one in 50 homeowners files a claim for water damage or freezing, which represents 29% of all homeowners insurance claims, according to the Insurance Information Institute. Homeowners can purchase flood insurance through the Federal Emergency Management Agency's National Flood Insurance Program. However, if mold damage is hidden on floors, walls, or the top of the ceiling and the insurer can't prove that you knew it, your insurance may cover it.
You may have the option of buying flood insurance through the National Flood Insurance Program or adding flood coverage as a separate endorsement to your policy if you live in a flood-prone area. You'll need to purchase a flood insurance policy for this type of coverage, and not all insurance companies offer them. Water damage isn't always covered by your home insurance if it's not the result of an accident or a sudden, unexpected event. The final insurance policy premium for any policy is determined by the insurance company upon application. Along with your home insurance, you can protect your home from most types of water damage by adding backup coverage to your policy or purchasing separate flood insurance. If a pipe in your house has been leaking for months and hasn't been repaired, mold can grow as a result, but your home insurance won't cover it.
To ensure that you are adequately protected against water damage and flooding in your home, it's important to understand what is covered under your existing home insurance policy and what additional coverage you may need. In conclusion, purchasing additional coverage for water damage on your home insurance policy is essential for protecting yourself against potential losses due to flooding or other types of water-related damages. It's important to understand what type of coverage you need and what type of coverage is offered by different insurers before making a decision.
