Understanding Home Insurance and Water Damage

One of the leading causes of loss on a homeowners insurance policy is water damage. Water can enter your home through various sources. Depending on where the water comes from and how it enters the home determines whether your home insurance policy will cover it.

Homeowners that have a basement can experience a sewer backup or water backup. This type of water damage refers to water that backs up through sewers or drains. Water backup can be caused by clogged pipes such as tree roots or heavy rains. Water backup coverage also covers septic backups and sump pump failures. Water backup coverage is typically not included on home insurance policies, but coverage can usually be added for a slight additional premium.

Another type of water damage can be due to overland water, also known as flooding. Overland water damage is a result of heavy rains, spring runoff, or rivers or lakes that overflow. It’s uncommon for home insurance companies to cover overland water. You can purchase flood insurance through the National Flood Insurance Program even if your home is not located in a designated flood zone area.

Groundwater is different from overland water and water backup. Unlike overland water which collects on top of the ground, groundwater seeps in from below the ground. Groundwater typically enters homes suddenly and accidentally through walls or foundations.

Broken pipes are a common cause of water damage losses. This type of problem is covered on most home insurance policies.

Another common source of water damage is clogged gutters and downspouts. When gutters are clogged, water backs up and forms pools on the underside of the house. Pools of water around the house’s foundation can cause it to crack. A cracked foundation will allow water to seep into basements or crawl spaces. Water seepage can cause mold to grow and become a health hazard for occupants and visitors in the home. Home insurance policies generally cover in this situation.

Old or faulty washing machines, ice makers, or water heaters can also spring leaks in tanks or pipes without anyone detecting them right away. Slow leaks can cause damage to floors and walls. Leaking appliances are another source of water damage that can cause mold to grow and make your home smell musty, and these losses are also covered on your home insurance subject to your deductible.

To help prevent water damage claims, it’s wise to inspect your home before you leave for an extended period and turn off the main water supply.