Water Damage Claims: What's Covered and What's Not
Water damage is one of the most common property claims—but not all water damage is covered the same way. Here's what you need to know before a loss happens.
Jon Parrack
I just got off the phone with a client whose exterior water main—the pipe running between the water meter and their home—ruptured. 💧 They wanted to know if their homeowner's policy would cover the repair. Unfortunately, the answer was probably not, because they didn't have a "utility line" coverage endorsement.
This conversation happens more often than you'd think. Water damage is one of the most common property claims we see, but there's a lot of confusion about what's actually covered. Let's clear that up!
✅ What's Typically Covered
Good news first! Most home and business policies cover sudden, accidental water damage:
🔧 Burst pipes inside your home — That pipe in your wall or under the sink suddenly gives out
🌧️ Storm damage — Wind or hail damages your roof and rain pours in
🚿 Water backup — Sewer or drain backup (often needs an add-on, but worth it!)
🚰 Accidental overflow — Oops, someone left the faucet running
🚒 Fire department water — Water used to put out a fire (yes, really!)
That last one might surprise you! I once insured a museum that had an attic fire. Here's the crazy part—not a single item was damaged by the fire itself. But the fire department pumped around 800,000 gallons of water through the building. Nearly everything was destroyed. The good news? The policy covered all of it, because the water damage resulted from fighting the fire.
I also remember a claim where a client's family member with dementia started filling a sink, walked away, and forgot about it. Thousands of dollars in damage to floors and ceilings—but covered, because it was sudden and accidental.
🏚️ The Vacancy Problem
Here's one that catches people off guard. Most policies have a vacancy condition—if your building sits empty for more than 30-60 days, water damage coverage can be reduced or gone entirely. Heading out of town for a while? Let your agent know, shut off the water, and keep the heat on to prevent frozen pipes.
❌ What's NOT Covered
Flood damage 🌊 - And this is broader than you think! It's not just rivers overflowing. Even rainwater pooling in your yard and seeping into your basement counts as flood—and that requires a separate flood policy.
Water through existing openings - Wind rips a hole in your roof and rain pours in? Covered. Your roof was already worn out and leaked during a storm? Nope.
Slow leaks and seepage 💧 - Insurance covers sudden events, not gradual problems. That pipe dripping behind your wall for months? The damage probably won't be paid.
🛠️ Utility Line Coverage (The Fix for My Client!)
Back to that ruptured water main. The pipe from your meter to your house is considered a utility service line—and standard policies don't cover it. BUT many insurers now offer a utility line coverage endorsement that covers underground water, sewer, electrical, and gas lines. It's just a few bucks a month and can save you thousands. We recommend it to everyone now.
📋 What Should You Do?
Take a few minutes to review your policy. Do you have water backup coverage? Utility line coverage? Flood insurance if you need it? Fix small leaks before they become big uncovered problems. And hey—call us before something happens! We'd much rather add the right coverage now than deliver bad news after a claim.
Questions about your coverage? Give us a call—we're happy to take a look! 📞
