Is your home protected from unexpected water damage? Many homeowners assume their insurance covers all types of water damage—until they file a claim and find out otherwise.

At Vargas & Vargas Insurance, we’ve seen too many homeowners caught off guard by what’s covered—and what’s not. Water damage claims can be costly, and understanding your policy now can save you thousands in the future.

In this guide, we’ll break down which water damage scenarios are covered by homeowners insurance and which are not, so you can protect your home with confidence.

Does Homeowners Insurance Cover Burst Pipes and Sudden Leaks?

Yes, if the water damage is sudden and accidental, homeowners insurance will typically cover the cost of repairs. Common examples include:

A dishwasher or washing machine malfunction leading to water overflow

A burst pipe in winter due to freezing temperatures

A water heater rupture causing significant flooding

Does Homeowners Insurance Cover Burst Pipes and Sudden Leaks?

Homeowners insurance covers sudden water discharge, such as from a burst pipe, water heater rupture, or washing machine or dishwasher failure.

Overflow

If water overflows from a clogged toilet or sink (it happens to the best of us) and causes damage, that damage will be covered by homeowners insurance.

Storm-Related Water Damage

Homeowners insurance will also cover any water damage resulting from storms such as rain, hurricanes, tornadoes, and more.

For instance, inclement weather causes a tree to fall on your home, insurance will also cover any water damage, such as mold or wood rot, resulting from the incident.

Damage caused from rain simply seeping into your home or flooding your basement is not covered, but we’ll get into that more below.

Sewer backup or water backup (available at an additional cost)

While not automatically covered in your homeowners insurance policy, water backup coverage can be included for an additional cost.

This insurance will cover you if a pipe, drain, sewer line or sump pumps backs up and causes an overflow in your home.

This is different from the “overflow” coverage listed above because the backup occurs deeper within the plumbing system than the drain.

To learn more about the differences between damages related to water overflow and backup, check out this article: Water Overflow vs. Water Backup: What’s the Difference?

For official guidance on flood insurance policies, visit the National Flood Insurance Program (NFIP).

What Water Damage Isn’t Covered by Home Insurance?

While you may think you are fully covered “water damage” coverage does not actually mean all water damage. If the following water damage situations happen to you, they will not be covered under your homeowners insurance policy.

Gradual damage

As we already mentioned, homeowners insurance typically only covers water damage that is sudden and accidental, so gradual water damage, or water damage resulting from poor maintenance usually isn’t covered.

For example, if you have a small drip under your kitchen sink that you ignore for months, the damage it will eventually cause on your cabinets, floors, walls, or ceilings is considered gradual.

Because the leak could have been easily fixed before it caused any damage, insurance companies will not pay for this type of claim.

Some gradual damage scenarios include:

Water seepage into your home from cracks in the foundation
Leaks around roofs, windows, and doors
Leaks in plumbing

Source of water damage

While homeowners insurance will cover damage from a sudden and accidental cause, it will not cover the source of the water damage.

For example, if your dishwasher breaks and leaks, your homeowners insurance will pay for the damaged floor, but will not pay for the broken dishwasher.

Flood damage

Homeowners insurance does not cover damage from floods, which can have a variety of causes including thawing snow, a rain storm, a river or creek overflowing, or even a neighbor’s pool draining into your home.

If you want to be protected from flood damage, you will need to buy a separate flood insurance policy. What many homeowners don’t realize is that approximately 25% of flood claims occur in low to moderate risk areas. Being outside a designated flood zone doesn’t mean you’re safe from flooding – in fact, it might give you a false sense of security. The good news is that you can purchase flood insurance regardless of your flood zone designation, and premiums are often more affordable in lower-risk areas. Given the increasing frequency of extreme weather events, flood insurance is worth considering even if you’re not in a high-risk zone.

Keep your home protected from water damage:

Water damage claims can be complicated, and not all scenarios are covered by homeowners insurance. Understanding your policy before disaster strikes is key.

Without proper coverage, you could face unexpected repair costs, from water seepage damage to sewer backups.

We can help you by reviewing your policies to ensure you have the proper coverages to help protect yourself from water damage.

Review your policy to ensure you have the right coverage. If you’re unsure, consult with Vargas & Vargas Insurance to get expert advice.

At Vargas & Vargas Insurance, we’re committed to making insurance simple and stress-free. Call 617-298-0655 or visit www.vargasinsurance.com today to make sure your home is fully protected.