Waking up to find a basement full of water is a terrible way to start the day. It gets worse when you notice your floor is damaged. The first question that likely comes to mind is our topic today: does homeowners insurance cover water damage?

In a scenario like the one above, a typical homeowners insurance policy will cover the costs of repairing the damage. However, not every type of water damage is covered.

Under most standard home insurance policies, if water damage occurs suddenly or accidentally from a source inside your home, such as a busted pipe, it will likely be covered by your homeowner’s insurance. If the water comes from outside your home, it will not be covered by your standard policy. However, you can seek special protection from flood-related damages with flood insurance, which is a separate policy that can make a smart addition to your existing home coverage.

Types of water damage not covered by homeowners insurance

Whether your homeowner’s insurance will cover water damage depends on the source of the damage. Here are three instances in which your homeowner’s policy will not provide coverage:

  1. Maintenance problems that have been neglected. For example, your homeowner’s insurance will likely not cover water damage that is the result of a faulty sink that has been leaking for several months.
  2. Repair or replacement of the actual source of the water damage. If your washing machine caused water damage to the floor of your laundry room, your homeowner’s insurance will not cover the costs to repair or replace the machine. However, it will typically cover the costs to repair your floors.
  3. Issues resulting from a flood. Flood damage will not be covered by your homeowner’s insurance policy and will require separate flood insurance coverage.

Water damage vs. flood damage

It’s important to keep in mind that water damage and flood damage are two different things. Distinguishing the two can be confusing, which is why it’s a good idea to read your insurance policy closely. The primary difference is that with a flood, the water comes from a natural source. So if you live in an area near a large body of water that could potentially overflow, or if your neighborhood is prone to extremely heavy rain, flood insurance may be a good idea.

To learn more about homeowners insurance and flood insurance and how it might affect you, feel free to call Delta today for expert advice.