Homeowners Insurance Coverage of Water Heaters
Updated: October 3, 2024
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Homeowners insurance covers water heaters under personal property coverage if a covered peril causes damage or leaks. For instance, if your home's water heater suddenly bursts due to a fire, it can be covered by your policy. However, lack of maintenance and normal wear and tear are not typically covered.
Homeowners insurance generally covers water heater damage due to sudden, accidental events, not wear and tear or maintenance issues.
Regular maintenance like annual inspections and tank flushing will help prevent leaks and extend your water heater's lifespan.
Since coverage varies, understanding your policy specifics is helpful; you may need additional insurance for floods or earthquakes.
Homeowners insurance typically includes coverage for water heaters under the personal property aspect of the policy. This component protects the contents of your home, including appliances like water heaters, against a range of perils outlined in the policy. However, this coverage usually only applies when the damage results from a covered peril, such as a fire or theft.
For instance, if a fire in your home damages your water heater, your personal property coverage may pay the cost to replace or repair it. However, remember that the specifics can vary between policies, so reviewing your insurance terms or consulting with your insurance agent is recommended to clarify your coverage.
When it comes to water heater leaks, homeowners insurance can offer some level of protection, but it largely depends on the nature and cause of the leak. If your water heater leaks suddenly and without warning, your policy may cover damage to your walls or flooring. However, homeowners insurance is unlikely to cover the damage if the leak is due to gradual wear and tear, lack of maintenance or aging.
Homeowners insurance covers water heaters when the damage or loss is due to sudden and accidental incidents covered by the policy. Incidents that are commonly covered include:
Fire or Lightning
Home insurance may pay for repairs if a fire or lightning damages the water heater.
Theft
Your policy may cover damages if someone steals the water heater or its parts.
Vandalism
Insurance may cover the water heater if vandalism damages it.
Weather Events
Your policy may cover certain weather-related events, like hail or windstorms, causing damage to the water heater.
Your insurer won't replace or repair water heaters if wear and tear or lack of maintenance causes damage to them. These exclusions highlight the importance of regular upkeep and ensuring your heater is in good condition. Homeowners insurance typically does not cover water heater damage due to the following:
Wear and Tear
Your insurer won't usually cover your water heater aging and deteriorating with time.
Negligence
Home insurance doesn't cover water heater damage due to a lack of maintenance, leading to malfunctions or leaks.
Floods or Earthquakes
Insurance policies generally only cover water heater damage from floods or earthquakes if you purchase additional coverage beforehand.
Intentional Damage
Your provider won't cover damages to the water heater done on purpose by the homeowner.
Maintaining your water heater helps ensure its longevity and efficiency while minimizing the risk of unexpected leaks or malfunctions. Regular maintenance helps prevent damage your homeowners insurance may not cover and ensures that your water heater operates at its best. Here are some tips to help you keep your water heater in top condition:
Have a professional inspect your water heater once a year to catch any potential issues early.
Keep the temperature around 120 degrees Fahrenheit to prevent overheating and reduce energy usage.
Regularly test the pressure relief valve to ensure it's functioning correctly, which helps prevent overpressure situations.
Flush out the tank annually to remove sediment buildup, which can impact efficiency and lifespan.
Regularly check around the water heater for signs of leaks or water damage.
Insulate older water heater tanks and pipes to improve efficiency and reduce heat loss.
Check and replace the anode rod every few years to prevent corrosion inside the tank.
Following these tips can significantly extend the life of your water heater and help avoid issues that your homeowners insurance may not cover.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
