Does Homeowners Insurance Cover Underground Water Leaks and Damage?

Homeowners insurance can provide financial protection against unexpected events, but does it cover underground water leaks and damage? Many homeowners assume that their insurance policy will cover any water-related issues, but the truth is more complex.

Typically, standard homeowners insurance policies cover damage caused by sudden and accidental water leaks, such as a burst pipe. However, if the leak is due to a slow drip or a clogged drain, it may not be covered.

The key to understanding what's covered lies in the policy's language, specifically the "sudden and accidental" clause. This means that if the leak occurs suddenly, like a pipe bursting, insurance will likely cover the damage.

Homeowners insurance typically covers sudden and accidental water damage, like a burst pipe, but not gradual damage, like a leaking bathroom sink. This means if you have a leaky faucet, it's not covered.

A sudden burst pipe, on the other hand, is likely covered. This includes damage from a frozen pipe that bursts, but only if you've maintained heat in the building. If you neglect to keep your home properly heated, the damage might not be covered.

Water damage from a roof leak, such as damage from a storm or a tree that falls on your roof, is also covered. However, if an accident damages your roof, you'll need to fix it in a reasonable amount of time. If you don't, further water damage might not be covered.

Most policies cover damage resulting from plumbing breakdowns, but not the cost to repair the plumbing itself. Insurance is meant to help in emergencies, not as a substitute for regular maintenance.

Here are some examples of what your homeowner's policy might cover:

Keep in mind that your policy may have specific requirements for maintenance and repairs. If you neglect to take care of your home, you might not be covered for damage that results.

Homeowners insurance policies don't cover damage from normal wear and tear, so if you've got old plumbing and pipe leaks, they're likely not covered.

The insurance company will send an adjuster to assess the cause of the damage and the cost. They'll evaluate the location of the pipes or other source of damage, whether any damage is from an old leak or a new one, and whether there are any signs of deterioration that should have signaled a future leak.

If the adjuster determines you could have prevented the leak, they may deny coverage. This means if you ignore a slow leak until it gets worse, that's likely not covered by your homeowner's policy.

Some situations where homeowners insurance doesn't cover water damage include:

These types of damage are not sudden and accidental, so they're not covered by standard policies.

Mold and water damage are often closely linked. Most homeowners insurance policies cover $5,000 of mold remediation, though it can range from $1,000 to $10,000. You can also buy a floater or endorsement that adds extra mold coverage to your policy.

Mold from water damage is generally covered by home insurance, as long as it's not due to lack of maintenance or neglect. This means that if a pipe in your home has leaked for months and gone without repairs, mold can grow, but it won't be covered by your homeowners insurance.

To prevent the growth of mold, keep your home dry and address spills and leaks as soon as you find them. This may be more difficult for homeowners in Florida or Louisiana. We recommend using vents and fans to reduce moisture and humidity in areas and appliances prone to it.

Areas prone to mold growth include basements, crawl spaces, and bathrooms. Regularly cleaning, ventilating, and dehumidifying these areas can help prevent mold from spreading.

Mold can be a real problem after water damage. Most homeowners insurance policies cover $5,000 of mold remediation, though it can range from $1,000 to $10,000. You can also buy a floater or endorsement that adds extra mold coverage to your policy.

If a pipe in your home has leaked for months and gone without repairs, mold can grow, but it won't be covered by your homeowners insurance. This is because mold damage is generally not covered if it's due to lack of maintenance or neglect.

Mold can be prevented by keeping your home dry and addressing spills and leaks as soon as you find them. This may be more difficult for homeowners in Florida or Louisiana, where humidity is higher.

You can use vents and fans to reduce moisture and humidity in areas and appliances prone to it. Bleaching an area after a spill or leak can also help prevent a mold infestation.

Some areas of your home are more prone to mold growth than others. These include basements, crawl spaces, bathrooms, laundry rooms, cabinetry beneath sinks, garages, and crawl spaces.

If you suspect you have a mold problem, listen for a musty smell, which can indicate moisture and mold growth. You can also look for signs of mold on walls, ceilings, and floors.

Mold damage can be a costly and frustrating issue for homeowners. Most homeowners insurance policies cover mold remediation, but the amount can vary greatly, ranging from $1,000 to $10,000.

If you experience water damage due to a burst pipe or other covered event, mold growth is generally covered by your homeowners insurance. However, if the damage is caused by lack of maintenance or neglect, you won't be covered.

Floods, on the other hand, can cause mold damage, but this would be covered by flood insurance, if you have it. It's essential to stay on top of repairs and maintenance in your home, especially in areas prone to mold growth like basements, crawl spaces, and bathrooms.

Preventing mold growth is key, and you can do this by keeping your home dry, addressing spills and leaks promptly, and using vents and fans to reduce moisture and humidity.

Here are some areas to focus on:

Basements and crawl spaces

Bathrooms, especially those without windows

Laundry rooms

Cabinetry beneath sinks

Garages

By being proactive and taking steps to prevent mold growth, you can save yourself from costly repairs and potential health risks.

If you discover water damage in your home, contact your insurance company as soon as possible. Take pictures of the area and everything that was damaged, including where the water came from.

Get photos of the area before the incident, if you have them, to show the adjuster what it looked like before being damaged. Pictures can also support your claim if mold develops in the future.

Keep all pictures and documents associated with the damage and your claim, as they can serve as valuable proof if mold grows in the future.

Lack of maintenance can lead to denied claims. If you notice a minor leak but fail to address it immediately, you may void your coverage.

A growing bulge in your wall can be a sign of a more serious issue, but it's too late to claim insurance if you didn't take care of the leak when it was small. Your insurance company may claim that you failed to carry out routine maintenance.

A burst pipe during winter is often preventable, but if you go away for the holidays and shut off your heat, you may be responsible for the repairs. The temperature can cause your pipes to freeze and burst.

Contact your insurance company as soon as possible after discovering water damage in your home. Take pictures of the damaged area and everything that was affected, as well as where the water came from.

Get photos of the area before the incident, if you have them, to show the adjuster what it looked like before being damaged. Pictures can be especially useful if mold develops in the future.

You'll be asked questions about your claim to help decide if it's covered by your policy. An adjuster will come to assess the damage.

Take pictures of the damage before making any urgent repairs, and keep receipts for any materials you purchase. This will help support your claim and ensure you get the compensation you're entitled to.

You can also hire a contractor to evaluate the water damage and give you a repair estimate, which can be useful if the adjuster's quote is too low. This allows you to negotiate with your insurance company.

If you've discovered a leak in your home, act immediately to prevent further damage. You should try to stop the flow of water as quickly as possible.

Some leaks can be solved by attaching a dishwasher hose properly or tightening a loosely attached pipe. Other times, you may need to shut off your home's water supply while you investigate.

Before removing any water, take photographs. This evidence may help you defend your claim with your homeowners insurance company.

To remove the water as quickly as possible, elevate any personal property, furniture, and rugs to avoid further damage. Open windows to allow air to flow through the room.

Run an air conditioner or dehumidifier to remove moisture from the air. Use a Shop-Vac or sump pump to remove standing water. If the leak is near any electrical wiring, turn off your electricity at the breaker to avoid electrocution.

Hang any wet rugs or carpet to dry. Removing the water as quickly as possible will help minimize the ultimate cost of the damage.

Here are the steps to take when dealing with a leak:

Documenting the damage and removing the water as quickly as possible will help you when filing a claim with your homeowners insurance company.