Does homeowners insurance cover water damage? (August 2025)

Water damage is one major risk that troubles the majority of homeowners. During winter, frozen pipes can burst, washing machine hoses can leak, and sprinkler systems can break down, which can seriously damage your property with water. Or the damage can even be from a burst pipe, a heavy downpour, or a leaking dishwasher. It is a severe and costly problem for homes because the average water damage claim is $11,100, costing around $20 billion annually.

So, does homeowners insurance cover water damage? Yes, in some circumstances. Most home insurance policies cover water damage that happens unexpectedly and unintentionally from an indoor source. However, typical home insurance doesn't cover water damage that develops gradually over time or flooding from heavy rain.

Though many home insurance companies offer coverage for water damage, homeowners are always confused about what's covered and what isn't. So, keep reading to know more about does homeowners insurance cover water damage!

What type of water damage is covered by homeowners insurance?

Does homeowners insurance cover water damage? In most circumstances, your homeowners policy will cover water damage, so you usually don't need to worry about it. Understanding the situations where you get coverage and where a claim denial is possible is crucial. Here are some situations where water damage

Rain and flood: Does home insurance cover water damage due to rain? Yes, if it's from storm damage. But do floods get covered by home insurance? Usually no! Your dwelling coverage will often cover the costs of repairing your walls and floor if a storm breaks a window and rain damages your living room's furnishings and sheetrock. Likewise, your furniture will typically get coverage by your property insurance.

Suppose you forget to close your window before a downpour arrives and the rain enters, causing damage to your furniture. Then, your insurance claim to repair or replace your furniture would probably get rejected.

Overflow of appliances: Ideally, your dwelling coverage will pay to fix any damage brought on by an appliance overflow. But this applies only if it happens quickly and unintentionally. For instance, your dwelling coverage should pay for the damage if a sock accidentally stops the water outflow hose from your washing machine and floods your laundry room. However, if your carelessness caused the issue, your homeowners coverage won't cover appliance water overflow.

Leaking pipes: Your home insurance will cover the damage caused by a leaking or broken pipe. However, your insurer will reject your claim if the leaking pipe causes damage due to improper maintenance.

Extinguishing a fire: Home insurance policies will mostly offer coverage for water damage caused by a fire. So, for instance, your insurer should pay for the losses if a grease fire destroys your kitchen and firefighters pour water into your living room, ruining sheetrock, flooring, and furniture. But the insurer won't pay for the fire or water damage if your negligence causes the fire to start.

Sewer backup: Generally, your insurer may be responsible for paying for the damage if the sewer backup happened somewhere other than your property, like in the street. However, home insurance policies typically do not cover water damage if the water backs up on your property.

When does homeowners insurance exclude water damage?

Suppose water damage occurs without being the result of an accident or other sudden, unexpected event. In that case, your home insurance policy may not always cover it. If water damage happens as a result of negligence, the homeowner will be responsible for the expense of repairs. Homeowners insurance does not often cover water damage in the following circumstances:

• Ground seepage
• Blockages in water or sewage pipes
• Flooding
• Improperly maintained pipes

Standard home insurance policies also do not cover water damage brought on by a flood. So you'll need flood insurance, especially if you live in Louisiana or another area with a high risk of flooding.

How to file a water damage insurance claim

Does homeowners insurance cover water damage? If your insurance policy provides coverage, you should file a claim for the water damage.

As soon as you see water damage in your house, you must immediately call your insurer. Take images of the affected area, the damage done, and the water source, such as a broken pipe or a hole in the roof. Find any photos you may have of the area before the incident so you can prove to the claims adjuster how it looked before the damage. If mold later appears, these pictures will be especially helpful in proving that water damage was the cause of its growth and not negligence.

Your insurer will ask questions regarding your claim to determine whether your policy protects it. Then, they will analyze the damage with the help of a claims adjuster. Take photos of the damage before doing any repairs, and retain the receipts for any materials you bought to do urgent repairs before the adjuster can examine the damage.

Alternatively, you could hire a contractor to assess the water damage and provide a repair cost estimate. It gives you a chance to bargain with your insurer if the insurance adjuster's proposal for coverage is too low. The insurer will often send you an advance of roughly half the repair cost once you agree to the repair cost. Then, upon completion, you'll get the remaining amount after deducting the deductible.

How to prevent water damage

Follow these steps to avoid water damage in your home.

• To keep leaves and other debris out, clean your gutters and downspouts frequently, and think about installing gutter guards.
• Set your thermostat to at least 55 degrees in winter to avoid burst pipes.
• Make immediate repairs after checking major appliances, including hoses and pipelines, for leaks and other damage. Check for broken shingles on your roof as well.
• In case an emergency arises, you should know where the main water shut down valve is located in your home.
• Think about utilizing smart home technologies to warn you about a hidden leak.
• Seal all of your windows, both inside and outside, to stop water seepage.
• Look for leaks or cracks in exposed pipes. Replace or promptly repair any broken pipes.
• Seal showers and bathtubs to stop water leaks.
• To avoid standing water and direct rainwater runoff from the building, slant any planting beds surrounding your home with soil downward.
• Cut the water supply to the washing machine and refrigerator before vacationing.
• Keep an eye out for any significant increases in water usage on your water bill. Excessive water use could indicate that your plumbing system may have a problem.

Mold from water damage

Mold is common and frequently discovered after water damage to your house, but not covered under homeowners insurance. Although removing a mold infestation from your house might cost upwards of $30,000, your home insurance may assist cover the expense depending on what caused it.

When is mold covered by homeowners insurance?

Suppose mold develops due to water damage brought on by a covered risk. In that case, your homeowners insurance will cover it. Your homeowners insurance will pay completely or part of the expense of the mold removal if circumstances like burst pipes or AC system overflows allow mold to grow. It is because the insurer considers mold as an extension of water damage.

Although some plans range from $1,000 to $10,000, most home insurance policies pay only $5,000 for mold damage repair. Additionally, you can add a floater or endorsement to your home insurance policy that increases mold coverage.

Mold can develop in your home if a pipe leaks for months and hasn't got fixed, but your homeowners insurance won't pay for it. Since floods can also result in mold growth, your flood insurance would provide coverage for any potential mold that results from a flood. The flood insurance adjuster would assess and decide on this cause if you filed a claim for mold damage. By keeping your house dry and taking care of spills and leaks, you can stop the spread of mold as soon as you notice these.

Do rates increase after a water damage claim?

A water damage claim on your record can significantly influence; on average, rates increased by 19%. Nationally, water damage claims result in the fifth-highest premium rise after fire claims. Check the following table to see how rates changes after water damage claims.

Home insurance rates by companies after water damage claim

With an annual average rate of $1,476, State Farm offers the lowest rate for home insurance after a water damage claim. USAA and Nationwide are the next best options.

Way.com Summary

A homeowner can expect water damage to happen at any time. Most home insurance policies will provide coverage if the source of water damage is unintentional and unexpected. However, water damage due to flooding, sewer backup, improperly maintained pipes, and ground leakage will not get coverage.

On the other hand, the mold that develops due to water damage brought on by a covered risk will get coverage from your home insurance policy. Suppose you're living in an area that is prone to flooding. In that case, it is better to have extra flood insurance to cover the damages. It is always safe to check your home insurance policy to know which water damages are covered and which aren't.

How to file a home insurance claim for water damage with Way.com

Most home insurance policies provide coverage for water damage if the source comes under a covered risk. Therefore, if a homeowner qualifies for an insurance claim for water damage, they need not worry about a high repair cost. Finding a home insurance policy that offers adequate coverage at a reasonable price, however, can be difficult. So how do you obtain one?

That's where Way.com can help you. Always use our app or website to compare prices from several insurers, then choose the one that offers the best coverage at the lowest price. But do you need any further help? Then our local home insurance agents in your area can assist you. They will explain the process of filing a claim and the most complex home insurance rules, terms, coverages, and discounts.

So, contact one of our insurance agents if you wish to submit a claim for water damage.