To begin with, there are a few distinct sorts of coverages included in homeowner’s insurance. Let’s have a look at them one by one: There’s ‘dwelling coverage,’ which covers the structure of your home (the building itself) and any associated garage. When it comes to water damage, your dwelling coverage might assist cover the costs of repairs if, for example, plumbing-related losses cause damage to your home’s walls. Then there’s your coverage for ‘other structures.’ Detached garages, fences, and swimming pools are examples of this. Personal property coverage is another aspect of your home’s insurance that protects your personal things. As a result, if a pipe breaks and destroys your brand-new television, your personal property coverage may be able to assist you in replacing it.

There’s a lot of misunderstanding about whether homeowners insurance covers water damage. A reasonable rule of thumb is that if the water damage was caused by something unexpected or unintentional (for example, a broken pipe), your homeowners’ insurance might be able to assist with paying the costs. However, you will not be covered if the water damage was caused by inadequate maintenance or ordinary wear and tear (for example, a leak that has been leaking for weeks) and there is flooding from the outside. In other words, it’s less about the sort of water damage and more about why it happened in the first place. It is your job as a homeowner to keep up with the upkeep. Water Backup Coverage is an addition to your home’s insurance that you may get if you want to be extra safe. Your basic insurance coverage will cover damages to your property if a pipe burst or a defective appliance leaks water. On the other hand, Water Backup Coverage will cover your belongings if a pipe or sump pump backs up and causes water damage in your house (notice that this endorsement does not cover the pipe itself, only your flooring or your favorite sweater). Because sewer backups are more prevalent than you would believe, this might save you money in the long run. 

Standard homeowner’s insurance does not cover flooding. Because flooding is a regular event, you may acquire a separate flood policy, appropriately termed flood insurance. Flood insurance should be a top consideration if you reside in an area prone to floods. If you get a mortgage in a flood-prone location, your bank may compel you to get flood insurance to safeguard your house. However, there is one exception: If your home floods due to a burst pipe (which happened unexpectedly), your homeowners’ insurance will cover the price of getting you out of the mess.