Understanding Water Damage Coverage in Your Homeowner’s Policy

Water damage is an important part of your property insurance coverage that every homeowner should thoroughly understand. In my experience too many homeowners believe any and all water damage is covered by their policy but that is definitely not the case.

Here is a high-level summary of water damage that is typically covered in most standard homeowner insurance policies and information about the optional endorsements for additional water damage coverage. Policy coverage varies by carrier and certain exclusions may apply so always review the contract thoroughly with your agent.

Covered Water Damage

Typically most homeowner’s policies include coverage for water damage in the following situations which are considered sudden and accidental incidents:

• Roof shingles blown off in a windstorm allowing water to leak in
• Ice dams (ice buildup near the roof eaves preventing proper drainage and causing water to back up under the shingles)
• Toilet, sink, shower or bathtub overflow
• Water damage to window framing and drywall inside the house caused by wind-driven rain through an exterior window
• Water leaking from an appliance such as a hot water heater or washing machine (not an inclusive list)

Most property insurance policies also offer optional water damage endorsements (for additional premium) that homeowner’s should consider. These types of claims are typically NOT covered by most standard homeowner’s insurance policies but are common occurrences.

1. Hidden water endorsement -covers continuous or repeated seepage/leakage due to corrosion or rust to a hidden pipe. The resulting damage must be hidden, located and concealed within the walls, floors, ceilings, cabinets or behind/under a home appliance.

2. Water coverage from an outside source – examples:

• Lawn or garden sprinkler systems, garden hoses and spigots.
• Swimming pools and hot tubs.
• Man-made water features

3. Sewer/septic back up- a blocked sewer line that cause sewage to back up in sinks, bathtubs/showers or toilets and overflows.

4. Sump pump overflow – when the pump is not able to keep up with the volume of water accumulating and it overflows into the home.

5. Freezing of whirlpool, hot tub or spa located outside or in an unheated building.

Water Damage NOT Covered by Homeowner’s Insurance

The type of water damage that is typically never covered by a standard homeowner’s policy or an optional endorsement:

• Water that seeps up from below the surface of the ground also known as groundwater
• Flood water from overflowing lakes, streams or rivers or any other natural source of water
• Water accumulation from heavy rain that seeps into the home
• Mudslides or mudflows

This type of water damage loss is only covered by a separate flood policy.

All homeowners should work with an agent to determine what is the best coverage for their property taking into consideration the age of the home, the location, number of occupants and the weather patterns where they live (for example- if they live in hail prone areas or where flash flooding is common).

Callie-Ben Mitchell has been an American Family Insurance agent since 2001 when she founded The Mitchell Agency located in Broomfield, Colorado. You can discuss your homeowner’s insurance needs with her by calling 303-554-6900 or visiting calliemitchell.com.