Water Damage: What Does Homeowners Insurance Cover?

What type of water damage is covered by homeowners insurance?

Types of water damage covered by home insurance

Did you know that all water damage isn’t the same, and water damage insurance is covered differently on your home policy? Depending on how the water entered your home, and where it came from, determines how it’s covered (or not covered) by your home insurance. Even if you’ve done everything to prevent a flood in your home, sometimes Mother Nature has other plans – so it’s important to know exactly what type of water damage is covered by homeowners insurance. We’ve recruited our own expert and licensed Insurance Agent, Matt, to explain the difference between general water damage incidents and damage from sewer backup or overland water.

What types of water damage does home insurance cover?

Open "Water Damage with Matt" text transcript

[Percussive upbeat music]

[Title: Ask Sonnet]

[Subtitle: Water Damage]

[Sonnet HOME + AUTO branding / wordmark]

[Speakers Name: Matt / Job Title: Customer service hero]

> Matt: Hi, my name is Matt I'm a customer service hero at Sonnet, and today we're gonna be talking about water damage because I love talking about sewage.

[laughter]

>>Matt: Cut that.

When it comes to home insurance it's protecting, arguably, one of the biggest assets you're ever gonna own in your life. General water damage that is typically included in your standard home insurance policy,

[heading: General water damage / subheading: Included coverage]

[graphic of a home filling with water due to appliance malfunction]

and that's things like your dishwasher suddenly malfunctioning and causing a flood in your home and causing some serious damage. Further to that there's some more optional coverages like sewer back up and over-land water coverage.

[heading: Sewer back up / subheading: Optional coverage]

[graphic of a home filling with water due to sewer back up]

Sewer back up coverage is actually an event that occurs when the sewer drains back up into someone's house. Not only is it really difficult and expensive to clean up but it can also pose health risks.

[heading: Overland water / subheading: Optional coverage]

[graphic of a home filling with water from outside]

When it comes to overland water coverage, that's for events like excessive rainfall or spring runoff maybe even a snow melt. It doesn't actually include the escape of coastal water or salt water that would not be an event that's covered by overland water coverage.

We get a lot of questions at Sonnet about whether or not they need those optional coverages of sewer back up and overland water coverage. Those events can be quite common and they can also be quite costly if they do occur. So making sure you have the right water damage protection that's available to you is of paramount importance, especially for those situations that can sometimes be pretty messy.

[Sonnet HOME + AUTO branding / wordmark]

[legal disclaimer: (copyright) 2018 Sonnet Insurance. Sonnet Insurance All trademarks used herein are owned by the respective entities. All rights reserved. Policies underwritten by Sonnet Insurance Company.]

Key takeaways

Not all water damage is created equal
Additional insurance coverage is important, especially depending on your home’s location
Home maintenance and upkeep is key in helping prevent water damage
Even if you live in a high-rise condo, getting water damage insurance is still a good idea
Small leaks can cause big problems

What is general water damage?

“General” water damage includes something the insurance industry calls “clean” water. It’s sudden or accidental flooding from water that didn’t enter your home through the ground or the sewer. For example, maybe an appliance like your dishwasher overflows and causes a flood in your kitchen. This would fall under the more common, “general” water damage category. Other examples include waterline breaks, and frozen or burst pipes.

What is water damage insurance?

Water damage insurance can help cover the cost of repairs due to unexpected water issues inside your home. Imagine your water main breaks and floods your basement. You contact your insurance company right away, and they'llsend an adjuster to assess the damage and determine what's covered under your policy. Your policy might cover repairs to your basement walls, floors and damaged belongings, like furniture or appliances. It might also cover the cost of removing the water and drying out your basement to prevent mold.

It's important to review your policy details to make sure you’ve got the proper coverage for your home. Some home insurance policies have limits on coverage amounts, and usually you’ll pay a deductible.. Understanding your coverage ensures a smoother process if water damage occurs.

What water damage is typically covered by insurance?

Water damage insurance isn’t just about preparing for a flood - there’s many potential water-related issues that could (pardon the pun) rain on your parade. Here’s a few types of water damage that you might already be aware of, as well as some causes that might surprise you:

Weather

Depending on if you’ve kept up with your home maintenance, water damage insurance often covers weather-related issues like heavy rainfall or ice dams. Regular gutter cleaning and proper roof ventilation helps prevent backups and leaks. Damage caused by neglect is typically excluded from coverage, so stay on top of your home’s upkeep to stay protected.

Water main breaks

Canadian cities usually fix broken water mains under public roads, but damage to the pipe connecting your house to the city main (your "service line") is your own responsibility. Home insurance may cover service line replacement if damage isn't due to normal wear and tear, like if a tree root causes a break, but it’s best to check your policy for coverage specifics.

Burst pipes

Frozen pipes bursting? Water damage insurance typically covers this, even if your heat was on. Policies also generally cover sudden, accidental discharges, like a pipe cracking from ice during the winter. Damage from slow leaks or wear and tear usually isn't covered, but your policy will have specific coverage details.

Accidental leaks

Water from abusted washing machine or leaky water heater can cause costly damage. Your home insurance often covers accidental leaks from appliances, but certain events might be excluded or require specific endorsements. Promptly reporting the leak is crucial for a successful claim, not to mention preventing further damage.

What water damage is typically not covered by insurance?

Although water damage insurance covers a variety of unexpected (and unwelcome) surprises, there are some that it doesn’t cover. Just like knowing what isn’t covered by home insurance, there are a few exceptions for water damage that you should be aware of:

Poor home maintenance or neglect

Falling behind on routine home maintenance can void water damage claims. If water damage occurs from a leaky roof you've failed to fix, or from pipes that burst while you were on vacation, your insurer might deny coverage. Regular upkeep and reasonable precautions are your responsibility. Neglecting your home is like asking for trouble – and a denied claim.

Gradual or long-term leaks

Ignoring small leaks can lead to big problems, especially when it comes to water damage. Dripping pipes and unnoticed roof leaks cause rot, mold and burst pipes.. Insurance often rejects claims for this "gradual" damage because regular home maintenance could have prevented it, which categorizes it as neglect, not a sudden unexpected event.

Coastal flooding

Standard Canadian home insurance usually doesn't cover flooding from the ocean or damage from saltwater – think rising tides, storm surges, or waves. You need extra insurance, often called overland water coverage, specifically for this. Check your policy to see if you're protected from coastal flooding, and if not, talk to your insurer about adding it if it’s a concern for your location.

Flooding

Home insurance typically excludes flooding from overland sources like rivers and rising groundwater. To protect your home from these increasingly common risks, you'll need that extra overland water coverage for your home insurance. If you live in an area of Canada that is a flood risk, speak to your insurance provider to ensure your home is protected.

Sewer backup

Standard home insurance usually excludes sewer backup damage. This means if sewage escapes your drains, sump pump, septic tank, or weeping tiles, you're likely on your own for repairs. Check your policy; you might need separate coverage for this type of damage. It's an extra cost, but worth considering given the potential expense (and general grossness) of cleanup.

What additional coverage is needed for water damage?

Now that we’ve discussed what is and isn’t covered by typical water damage insurance, let’s focus on what additional coverages homeowners (like you!) should have to protect themselves and their belongings:

Sewer backup coverage

Sewer backup is when the sewer drains backup into your home – typically the basement – caused by a clog in the sewer line, outdated sewer systems, or excess rain. Sewer backup coverage covers damage from this water that comes into your home through pipes, drains, septic tanks, eaves troughs, or down spouts. Sewer backup damage can warrant a timely and expensive clean-up, so having the right coverage on your home policy is important.

Overland water coverage

Overland water is often considered “fresh” water that comes through your windows and doors at ground level. Overland water coverage covers damage from excessive rainfall, river flooding, spring run-off and melting snow or ice. Unfortunately, it doesn’t cover damage from coastal water (saltwater) – so events like tsunamis or tidal waves wouldn’t be included.

Water damage insurance FAQs

Why should I get additional water damage insurance coverage?

As Matt mentioned in the video, water damage can be costly to repair. Adding these extra coverages to protect your stuff would cost less than the cost of replacing and fixing everything that was damaged. Sewer backup and overland water coverage also include additional living expenses if you have to move out of your home while any damage is being repaired. These coverages are worth the nominal increase to your monthly premium, especially if you live in a flood-prone area.

Do I need additional water damage insurance if I live in a high-rise condo?

This depends on the situation. Let’s say the lobby or lower levels of your condo have been damaged by a flood – so badly that you can’t access your unit. Having that extra coverage would help with additional living expenses if you needed to relocate while the repairs are happening. It would also provide coverage for your items in a storage locker located in the basement of your building and was damaged by a flood.

How much does water damage insurance cost?

Location, home age, construction materials and claims history affect water damage insurance costs. Living near water or in older homes often means higher premiums, and basic policies rarely cover overland flooding (from rivers or heavy rain) or sewer backups. Adding these important protections may increase your cost, but it offers valuable peace of mind against potentially expensive water damage repairs.

How much water damage insurance coverage do I need?

Your home's location and local weather have the biggest impact on how much coverage you need. Areas with heavy rainfall, spring thaws, or near bodies of water face higher flood risks. Older homes with outdated plumbing may need more coverage, while basement finishing adds value needing protection.

Where is water damage most common in homes?

Leaky roofs can damage ceilings and walls, while bathrooms, with showers and toilets, are prone to leaks. Faulty plumbing, like burst pipes, also causes quick flooding. Basements are vulnerable to groundwater seepage, and sump pumps, if they fail, can't remove excess water, leading to basement flooding. Regular home maintenance is key to preventing water damage.

How can I protect my home from water damage?

Safeguarding your home against water damage is easier than you think. Start by insulating exposed pipes, especially those in unheated areas like attics and crawl spaces. This prevents freezing and bursting in winter. Regularly clear your gutters and downspouts of leaves and debris and extend your downspouts several feet away from your foundation to direct water flow away from your house. Inspect your foundation for cracks and seal them promptly. Even small cracks can allow water to seep in, causing significant damage over time and becoming a major problem.

Your roof is your first line of defense against rain and snow, so check for missing or damaged shingles and schedule repairs quickly. Taking these simple precautions will go a long way in protecting your home and saving you money on costly repairs down the road.

Understanding water damage insurance

Check to see if you live in a flood-prone area and learn the best ways to prevent water damage to your home. Some examples could be installing a flood-sensor in your basement or kitchen; getting your home winter-ready to avoid frozen or burst pipes; or installing a sump pump to help avoid sewer backup. Having sewer backup and overland water coverage will make sure you’re covered in any situation. If you’ve got questions about your water damage coverage or want to discuss adding more specific coverage, reach out to us here at Sonnet any time.

Protect your home and the things you love most.