Standard home insurance policies may cover basement flooding, but it all depends on what caused the water to get in. For example, if your area is hit by a flash flood, then your homeowners insurance probably doesn’t cover your damage. But if your policy already protects against the event that created the problem, then there’s a good chance you’re covered.
When does homeowners insurance cover basement flooding?
As a rule of thumb, home insurance policies don’t cover water damage when it’s caused by floods. But basement flooding can have other causes, and in some cases, those causes are covered by homeowners insurance. If the source is covered peril, then your policy likely helps you pay for repairs.
One important thing to remember about home insurance is that it’s designed to protect you from sudden, unforeseen, and accidental damage. Keep that in mind as we take a look at some of the perils that may trigger coverage for basement flooding.
Burst pipes and plumbing failures
If a pipe burst results in your basement flooding, then your home insurance could pay for repairing damage and replacing personal property. However, many policies put some restrictions on this particular peril. For instance, coverage may only apply if all of the following are true:
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You’re living in the home.
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Your home has been properly maintained.
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You’ve kept your home at a minimum temperature.
Pipe bursts are often sudden and accidental, but they aren’t always unforeseen. As a homeowner, you need to take reasonable steps to keep pipes from bursting in order for your insurer to cover your loss.
Leaky household appliances
Washing machines, refrigerators and air conditioning units are all examples of household appliances that many homeowners keep in their basements. Unfortunately, they’re also good examples of items that may leak or malfunction, causing flooding in your basement.
Home insurance companies typically cover water damage in this instance as long as lack of maintenance or neglect is not the root cause. Your claim could be denied if your appliance shows signs of wear and tear or evidence of prior leaks.
Overflowing fixtures
Flooding caused by an overflowing sink, toilet or bathtub is known as localized overflow, and is usually covered by standard homeowners insurance policies. That’s also true if an appliance like your washing machine or air conditioner overflows.
Localized overflows are often considered to be unforeseen and accidental events, so they’re generally covered unless the issue is actually a lack of maintenance or negligence. However, evidence of prior overflows could affect the approval of your claim.
When does homeowners insurance not cover basement flooding?
Not every event that causes basement flooding is covered by home insurance. Some natural disasters aren’t covered, but there are other instances when home insurance excludes water damage in your basement.
Flooding from natural disasters
As we mentioned, home insurance excludes floods, so flood damage to your basement or the items stored is not covered. This includes flood damage caused by:
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Heavy rains.
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Storm surge from a hurricane.
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Flash floods.
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Groundwater.
Unfortunately, water seeping in from the backyard during particularly heavy summer rains is enough to create property damage. But you can get flood insurance to protect you from this kind of damage.
Sewer backups and sump pump failures
When sump pumps and external sewers fail suddenly, the backup can enter your home and create an expensive mess. However, sewer and sump pump backups or overflows are not included in most standard home insurance policies.
One option is to see if your insurance company offers an endorsement that provides the additional coverage you need. This will mean a slight increase to your premium, but that may be worthwhile if sewer backup is a concern.
Foundation leaks and structural issues
Foundation cracks are a common cause of flooded basements, but it’s a tricky one for home insurance. Homeowners insurance tends to focus on damage that is sudden and accidental, so it covers only a few kinds of foundation issues. In general, a foundation crack that lets rainwater into your basement is seldom covered. The same can be said of poor landscaping or drainage.
Lack of proper maintenance
Home insurance is not designed to help you pay for regular maintenance. In fact, insurers assume you’ll take care of your home and its grounds so as to prevent damage. So while a worn-out appliance or rusted pipes may result in a flooded basement, the damage does not trigger most insurance policies
What coverage do I need for basement flooding?
Home insurance can help you recover from basement flooding in some situations, but there are several events where coverage doesn’t apply. This may mean you need to add endorsements to your homeowners policy to better protect your assets.
Standard homeowners insurance
Whether or not a standard homeowners insurance policy covers every instance of basement flooding doesn’t matter – you’re still better off getting a policy than trying to self-insure. Water damage is expensive to remediate and most policies cover the more common events that can cause a flood in your basement.
Flood insurance
Flood insurance protects against weather-related flood damage, such as damage caused by heavy rains, snowmelt, flash flooding, and hurricanes. While coverage may be required in flood zones, it can be a valuable protection for homes in other areas.
Most homeowners get their flood insurance from the National Flood Insurance Program, but private insurance companies may also offer policies and endorsements that protect you in floods.
Sewer backup and sump pump overflow endorsement
A sewer backup endorsement, also known as water backup coverage or drain line backup coverage, protects you when water backs up into your home from your plumbing system. It can help cover the cost of restoring your basement and replacing your personal property.
Service line coverage
Getting coverage for a sewer backup may only be half the battle for some homeowners because most home insurance policies don't pay to repair the actual service lines. If a problem with the sewer line is on your property you could be responsible for some very expensive repairs. A service line endorsement helps with this cost.
How to mitigate basement flood risk
There is no doubt that homeowners insurance is a lifesaver after your home is damaged, but preventing problems in the first place is just as important. Here are some things you can do regularly to lower the risk of a basement flood.
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Check your flood risk. Find out whether your home is located in a high-risk flood zone. If so, seriously consider adding flood insurance to your regular home insurance policy to counter the added risk.
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Inspect your basement. Check your appliances, sump pump, sewer system and pipes on a regular basis to ensure all are in top working order. Look around your basement for cracks and discoloration; mold is also a red flag.
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Check the grounds. Perform an inspection of the exterior of your home, noting any clogged gutters or lawn debris that may allow water to build up and seep into your home. Inspect the grading to make sure it drains water away from the foundation, and check for any cracks where water can get in.
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Perform regular maintenance. Immediately address any issues you find during your inspection. This will give you a chance to fix any issues before they have a chance to grow into flood-worthy events.
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Be prepared. When you know what to do during a flood, you can react much faster to prevent further damages. Make sure you are prepared with the right processes and tools to best protect your property, especially if you have an older home. Keep proof of homeowners insurance information easily accessible so you can access it easily when you contact your insurance agent.
A little advance preparation can go a long way. Learn more in our article Six tips to manage your flood risk.
