Whether or not your homeowners insurance covers your water heater depends on how it was damaged and the details of your policy. Even if your policy doesn’t cover your water heater directly, your home insurance may cover repairs for damage to your home caused by a malfunction to your water heater, such as a leak, under certain circumstances.
However, if your water heater breaks down or springs a leak due to regular wear and tear, lack of proper maintenance, or mechanical malfunction, you’ll likely be on the hook for any repair or replacement costs. Most homeowners policies exclude these types of damage.
When home insurance covers water heater damage
Homeowners insurance covers sudden, unforeseeable damage to your home and personal property. In this context, your policy may cover damage to your water heater and/or damage caused by your water heater.
When a water heater is damaged by a covered peril
The dwelling coverage portion of a standard homeowners insurance policy usually protects appliances built into your house, like water heaters. If your water heater is located outside of your primary residence, such as in a detached garage, you’ll still have coverage under other structures insurance, which is also included in a standard home insurance policy.
Either way, you can typically file a claim for damage to your water heater if it’s caused by one of the perils (i.e., events) covered by your policy.
Commonly covered perils include:
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Fire or smoke
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Windstorm
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Hail
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Lightning
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Explosion
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Theft
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Vandalism
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Falling objects
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Weight of ice, snow, or sleet
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Impact by aircraft or land vehicle
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Riots
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Accidental water overflow or steam
However, if your water heater simply malfunctions, your home insurance probably won’t pay to repair or replace it.
When water damage is caused by water heater failure
Homeowners insurance also might cover damage to your property caused by a water heater malfunction.
For example, let’s say your water heater, which is in good working condition and has been properly maintained, suddenly bursts. Since standard home insurance policies often cover certain types of water damage, your insurer may help with repairs if it determines the cause was a covered peril.
These claims may fall under dwelling insurance if the structure of your home, such as walls or flooring, experiences water damage. But if your belongings are damaged, the claim will fall under your personal property coverage.
If your insurance company accepts your claim, it may cover costs to:
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Drain the flooded water and clean the damaged area
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Replace personal property
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Repair damaged structures
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Remove debris
You should also know that some home insurance policies have limited coverage for water damage.
Plus, water heaters are included in most home insurance inspections. If yours looks old, it may fall outside of an insurance company’s underwriting guidelines, making you ineligible for coverage. Make sure to review your home insurance to confirm your coverage details. If you’re unsure, contact your insurance agent.
Scenarios where water heater damage isn’t covered
Here are a few common examples of when your insurer won’t cover your water heater or related damage.
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Normal wear and tear
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Negligence or lack of maintenance, such as failing to promptly repair a leak
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Specific policy exclusions, such as manufacturer defects or improper installation
Some home insurance providers offer equipment breakdown coverage as a policy add-on, or as an endorsement, or as a standalone insurance product. This coverage protects major appliances — including water heaters, heating and air conditioning, and other major home systems — from sudden and accidental mechanical or electrical breakdowns.
Important steps to take to prevent hot water heater damage
The best way to prevent hot water damage claims is proper and regular maintenance.
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Schedule an annual water heater inspection with a home service professional. They’ll drain and flush the tank, and check for signs of wear and tear.
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Check the pressure relief valve on a regular basis to prevent bursts or leaks.
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Install a drain pan if your water heater system doesn’t have one yet. A drain pan helps prevent water damage in the surrounding areas if your water heater begins to leak.
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Regularly inspect the area surrounding your water heater to detect signs of water damage. If you notice a leak in your water heater, call a plumbing professional right away.
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Locate your home’s main water shutoff valve and learn how to use it in case of an emergency.
Regular maintenance and diligence can help you prevent damage to your house and avoid unnecessary claims or financial losses. Fewer claims can also help lower the cost of your home insurance premium, since some insurers may increase your rates after a claim.