Home insurance can help pay for plumbing problems when they’re caused by perils covered by your policy. However, there are several situations where plumbing problems aren’t covered. For example, leaks that are the result of wear and tear are usually excluded.
When does home insurance cover plumbing issues?
Home insurance generally covers sudden and accidental damage to a home. This may include plumbing issues such as:
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Leaking appliances.
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Frozen pipes.
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Overflowing bathtubs, sinks, and toilets.
How home insurance covers plumbing issues
Your home insurance policy has three coverage parts that are most likely going to be triggered by plumbing-related losses: dwelling, personal property, and loss of use.
Dwelling coverage
Dwelling coverage protects the structure of your primary residence. If damage to your walls, ceilings, or flooring occurs as the result of a covered plumbing issue, your dwelling coverage typically kicks in to help pay for repairs.
Personal property coverage
The personal property coverage in your homeowners policy covers damage to your belongings. This may be more extensive than you think, including damage to furniture, electronics, bedding, clothing, and other items.
Loss of use coverage
When plumbing problems cause damage that makes your home unlivable, the loss of use coverage clause in your homeowners policy may help. It helps pay for living expenses you may have that go beyond your normal costs while repairs are being made to your home. Expenses may include the cost of a hotel room, dining, or even laundry expenses.
For people who rent out a portion of their home, loss of use coverage also helps cover your lost rent when your tenants are unable to stay in the home.
In addition to these three coverage parts, your home insurance also likely includes coverage for reasonable emergency measures. This means you can make temporary repairs to keep any damage from getting worse.
Plumbing-related damage not covered by standard policies
There are some circumstances when damage from plumbing issues isn’t covered by a standard home insurance policy. Most of them have to do with whether or not the damage occurred suddenly or accidentally, but not all.
Gradual leaks and poor maintenance
If you have a small leak that goes undetected and ultimately causes significant damage, that damage probably won’t be covered by your home insurance. The same holds true when poor maintenance leads to a plumbing issue and water damage.
The thinking here is that, as a homeowner, you’re responsible for maintaining your property. That includes regularly checking your plumbing for problems and making sure small issues don’t get out of hand.
Wear and tear
By definition, wear and tear is neither sudden nor accidental. All items, including plumbing, have a lifespan and will eventually wear out. Home insurance is not designed to handle this particular issue.
Flooding
Many homeowners are surprised to learn that flooding is not covered by standard home insurance policies. However, flooding may be covered by a separate flood insurance policy through the National Flood Insurance Program or private flood insurance.
Sewer and drain backups
A standard home insurance policy generally doesn’t cover damage from sewer or drain backups. This is something you can usually get covered through an endorsement.
Optional endorsements for expanded plumbing coverage
You may be able to improve your plumbing-related coverage in your home insurance policy by adding some specific endorsements.
Water backup coverage
Water backups through sewers and drains can be nasty and expensive to remediate. A water backup and sump overflow endorsement for your policy provides additional protection against these repair costs.
Service line coverage
Your standard home insurance policy doesn’t cover the external water or sewer lines that run from the city line to your home. This means that you’re responsible for the cost of repair or replacing these service lines. Getting a service line endorsement adds this protection to your policy.
Mold damage
Standard home insurance policies provide limited coverage for mold damage or exclude it altogether. Ask your agent if your policy covers mold and to what extent so you can decide if a mold damage remediation endorsement is right for you.
Preventing plumbing damage
Plumbing problems can cause a chain reaction of expensive repairs. If that’s not enough of a reason to prevent them, then you might also want to consider that keeping claims off your record can help you lower your premium over time. Use these tips to help minimize your chances of having plumbing issues.
The vital importance of routine maintenance
We’ve mentioned it before, but the value of regular upkeep can’t be overemphasized. Stay on top of regular maintenance so you can address minor problems before they become more significant.
Water heaters
Water heaters should be drained and cleaned regularly to eliminate potentially damaging sediment in the bottom of the tank. You also want to check for water leaking around the tank and the valves or connections.
Maintaining pipes and connections
Pipes may clog over time and weaken from age, so check them for any sign of leaks regularly and respond to trouble immediately. And be sure you know where your main shut-off valve is. That can be a lifesaver should a pipe burst.
Check drains and keep drain pipes clear
Clean slow-moving drains and address even the smallest backups promptly. Additionally, you want to:
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Avoid putting anything down a drain that doesn’t belong there, such as grease, food, or nonflushable items.
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Make sure your sump pump is in good working order.
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Investigate possible causes if your water pressure drops.
Appliance maintenance
Poor or aging connections often lead to plumbing leaks that cause damage. Pull out appliances, like a washer or refrigerator with an icemaker, to inspect for leaks and to ensure hoses are still flexible.
Winterizing pipes
For those who live in cold climates, winterizing pipes can be critical in preventing water damage from a pipe burst. Insulate exposed water pipes with a pipe sleeve or heat tape. If vacationing for an extended period, use antifreeze in toilets, tanks, and drains, and maintain at least some heat in your home in your absence.
Use leak detection devices
Technology can help you monitor and react quickly to potentially devastating leaks, whether you are at home or away. Smart leak detectors can notify you of unusually high water usage that might be attributed to a leak, helping you avoid excessive water bills and large-scale damage in the event of a leak.
What to do if you discover a plumbing leak
Should you discover a leak in your home, your first step is to stop the leak immediately by switching off the water supply. Major appliances and faucets usually have shut-off values nearby, but if you can’t tell where the leak is coming from, you may have to find the main shut-off valve for your house.
Next, find the source of the leak. This can be tricky to do, and may require the help of a professional plumber. Be sure to document the damage the leak caused with photographs or video. Either can be helpful when it’s time to file a claim.
You also need to minimize your damage as much as possible, so try to remove excess water from your home. This and any steps you take to dry out and prevent mold are also things to document for your insurer.
Filing a claim
Accurately and promptly filing a claim goes a long way towards a smooth claims process. Your insurance company likely has guidelines for filing claims on its website, but we’ve listed some general steps that most insurers require here.
Reach out to your home insurance provider
Most insurance policies include language that requires you to notify your insurer that you’ve experienced damage. That usually means filing a first notice of loss (FNOL) to initiate the claims process. If you’re not sure how to do that, your agent can help.
Document the damage
As we mentioned before, documenting any damage you’ve sustained is a big help to your insurance company. Photos and video are particularly useful, but you also have to provide a description of the circumstances and surrounding events leading to your claim.
Understand what deductibles apply
If you have a large deductible, you may decide that going through the claims process is not worth the trouble. For example, suppose you have a $1,000 deductible, and repairs are going to cost only slightly more than that amount. In that case, you may prefer to pay for repairs on your own and not file a claim.
Ask your insurer what you should expect
It is not unreasonable to ask your insurer what the next steps are and how long the claims process may take. This can avoid unnecessary calls back and forth.
Working with an insurance adjuster
An insurance adjuster is a professional hired by your insurer to determine the validity and extent of your claim. For some claims, the adjuster needs to come to your home to inspect the damage.
If that’s the case for your claim, then you want to document any temporary repairs you made to stop more damage from occurring and avoid making any permanent repairs until after the inspection.
Takeaways
The plumbing system is a critical component of your house. It is, in essence, your home's circulatory system, facilitating water flow into and out of your home. This complex system of meters, pipes, valves, connectors, faucets, drains, hoses, and appliances needs to be well taken care of to prevent damage.
However, accidents can happen, and when they do, home insurance typically covers the fallout. For plumbing claims, as with most other kinds of property claims, the damage needs to be sudden, accidental, and caused by a covered peril to trigger your homeowners policy.
But remember, home insurance is not a home warranty. It’s not intended to cover plumbing systems or damage that comes from wear and tear, poor maintenance, or age.
For peace of mind and financial protection, homeowners should review their home insurance policy at least once per year. A review can let you know what is and is not covered regarding plumbing and other issues.
