Does Homeowners Insurance Cover Water Damage?

Key takeaways

Sudden and accidental water damage, such as a burst pipe, is usually covered. Gradual leaks usually are not.
Standard policies do not cover flood, and sewer or drain backup usually needs an endorsement.
Stop the leak and start drying quickly. Mold can start growing within a day.
Photograph the damage, keep your receipts and report the loss to your insurer.

The short answer

Most homeowner and renters policies cover sudden and accidental water damage, such as a burst pipe, a toilet overflow or a broken washer hose, according to the Texas Department of Insurance. Policies usually do not cover damage from gradual leaks, and standard policies do not cover flood.

Usually covered

A burst pipe.
A toilet overflow.
A broken washer hose.
Mold that develops on an item damaged in a covered loss.

Usually not covered

Gradual leaks and seepage, including mold from them.
Flood. You need a separate flood policy, such as one through the National Flood Insurance Program.
Sewer, sump or drain backup. Most policies need an endorsement to add this coverage.
Mold cleanup and testing. Most home policies do not include it, though your insurer may let you add coverage for cleanup after a covered loss.

Why "sudden" matters

The deciding question is usually how the water got in and how fast. A pipe that bursts overnight is sudden. A drip that went unnoticed for months is gradual. When you find a leak, stopping it and drying the area quickly protects your home.

What to do first

Stop the water flow or leak as soon as you can. Know how to turn the water off at the main valve and at the valves under sinks and near appliances.
Remove pools of water and start drying the area to prevent more damage and mold growth. Mold can start growing within a day after a leak.
Take photos or video before you clean up, and keep your receipts.
Contact your insurer or agent to report the loss and ask what your policy covers.

Check your own policy

Policies differ. Read the water damage and exclusions sections of your policy, and ask your agent whether you have sewer backup or flood coverage.

General information only. It is not insurance, legal or financial advice. Rules differ by state and change over time, so confirm details with your state insurance department, your insurer and your policy.

Common mistakes

Waiting to stop the leak or dry the area.
Assuming flood and sewer backup are included in a standard policy.
Repairing before you photograph the damage and keep your receipts.

Questions

Does homeowners insurance pay to fix the pipe that burst?

Policies differ on what they pay for around the broken part itself. Ask your insurer before you make repairs, and keep your receipts.

Is a roof leak covered?

It depends on the cause and on your policy. Standard policies generally cover rain and wind-driven rain, but not flooding. Ask your insurer about your situation.

Does renters insurance cover water damage?

Most homeowner and renters policies cover sudden and accidental water damage. A renters policy does not cover the building itself.

Sources

Texas Department of Insurance: When are water damage and mold covered by insurance?tdi.texas.gov
Texas Legal Services Center: Disaster manual, section 9 (insurance issues)texaslawhelp.org
FloodSmart.gov: National Flood Insurance Programfloodsmart.gov

Informational only. Rules and policy terms change and differ by state and insurer. Confirm details with your policy, your insurer or your state insurance department.