Does Homeowners Insurance Cover Water Damage?

Home insurance covers water damage if it’s caused by a covered peril, which is an event that is sudden and accidental, not gradual issues or neglect. Common covered perils that may include water damage:

• Burst or broken pipes
• Accidental overflow of household appliances (like a washing machine)
• Sudden and accidental discharge of water or steam from plumbing, heating, or air conditioning systems
• Water damage caused by extinguishing a fire
• Wind- or hail-related damage that leads to water entering the home
• Vandalism that results in water damage

Homeowners insurance can help pay for water damage through three main types of coverage: dwelling, personal property and liability coverage. Each applies in different situations depending on what was damaged and who was affected.

Home insurance does not cover water damage when it results from gradual issues, maintenance problems, or natural events that are excluded from standard policies. These situations are considered preventable or outside the scope of sudden and accidental damage. Common exclusions for water damage include:

• Flooding from heavy rain, storm surge, or rising rivers
• Sewer or drain backups (unless you have add-on coverage)
• Gradual leaks or seepage over time
• Poor maintenance or neglect of plumbing systems
• Mold or rot caused by long-term moisture buildup
• Groundwater seeping into basements or foundations

When it comes to insurance, water damage and flood damage are treated very differently. A flood, as defined by the National Flood Insurance Program (NFIP), is an excess of water on normally dry land affecting two or more properties or two or more acres. Standard homeowners insurance policies don’t cover floods, so you’ll need to purchase a separate flood insurance policy if you want protection against this type of event.

Water damage, on the other hand, refers to sudden and accidental events that cause water to damage your home, such as a burst pipe, an overflowing appliance, or water used to put out a fire. These scenarios are generally covered by standard homeowners insurance, provided they stem from a covered peril.

Since coverage details can vary, it’s important to review your policy carefully so you understand exactly how water damage is handled under your plan.

Most homeowners, renters and business owners can buy flood insurance, whether or not they live in a high-risk flood zone. To find out your risk level, check FEMA’s Flood Map Service Center, which shows whether your property is in a designated flood zone. 
Flood insurance is available through the National Flood Insurance Program (NFIP), which sells policies only through licensed insurance agents, not directly to consumers. If you want coverage, reach out to your home insurance agent or search FEMA’s agent locator to find one authorized to sell NFIP policies. In some areas, private insurers also offer flood coverage, which you can buy directly from the company or through an agent.

Regular maintenance is your best defense against costly water damage that insurance won't cover. Since insurers deny claims caused by negligence or poor maintenance, prevention protects both your home and your wallet. The most important preventive measures focus on your plumbing system, roof, basement and personal property protection:

Homeowners insurance covers water damage only when it's sudden, accidental and originates from inside your home. For complete protection, review your policy for exclusions and consider adding specific endorsements for sewer backups and hidden water damage, which aren't covered in standard policies.

Remember that flood damage requires separate flood insurance, regardless of cause. Prevention through regular maintenance remains the most reliable defense against expensive water damage that insurance won't cover.

Understanding water damage coverage can be confusing due to the many policy variations and exclusions. Here are answers to common questions about how homeowners insurance handles different water damage scenarios.

MoneyGeek analyzes homeowners insurance coverage for water damage using comprehensive data from official sources. Our research relies on official rate filings from state Departments of Insurance across all 50 states and pricing data from Quadrant Information Services to ensure accuracy.

For this page, we examined how standard homeowners insurance policies address water damage claims, analyzing coverage terms, exclusions and endorsement options across major insurance providers. We evaluated specific water damage scenarios to identify which situations qualify for coverage under typical policies and which require additional protection.

Our analysis includes reviewing common policy exclusions such as flood damage, gradual leaks and maintenance-related water issues. We assessed average claim amounts for covered water damage incidents and typical premium increases after filing water damage claims.