Most insurance policies will cover any sudden and unexpected damage that is caused to a home, including a burst pipe. What gets tricky is when an insurance policy looks at and categorizes leaks. The type of leak and the origin of its existence have a lot to do with the final decision on a claim.
A basic leak from a pipe will not be covered by your insurance company. This is considered to be normal wear and tear and maintenance expected of the homeowner. Now if a leak occurs from a covered peril or other circumstances surrounding the leak, it may be covered.
Keep reading below to really understand how a leak could be covered and the circumstances required for your insurance agency to kick in to help cover a leak and the damage resulting from it.
- Leaks are not typically covered under homeowners insurance policies.
- If a leak is covered, it is because it resulted from a covered peril.
- Leaks should be maintained by the homeowner to prevent further damage.
Leaking pipes: what is covered?
Water damage can cause a lot of damage to a home. Sometimes it is cosmetic, while other times, it is structural. For a bathroom leak to be covered by homeowners insurance, it has a be sudden and unexpected in nature. Gradual slow leaks that damage your home or personal property over time are typically not covered by home insurance. There are three different clauses available in most homeowners insurance policies that could help if a leak has caused damage to your home.
Dwelling coverage
If you find a leak in your home, and it is hidden behind a wall, you will likely need to remove the wall to repair the leak. When this is the case, your dwelling coverage will kick in. It will cover the replacement for the wall damage when maintenance is being handled for the leak.
Property property coverage
If you have a covered plumbing malfunction and it destroys your electronics, furniture, or other personal belongings, this coverage will kick in to help with the replacement cost or repairs of the items. It is important to note that there are limits on property coverage, so be sure to check the limitations on your policy. If your policy covers personal property on an actual cash value basis, then the insurance company will subtract depreciation from the reimbursement.
Additional living expenses coverage
If you are temporarily moved out of your home to fix repairs and damage to it, your ALE will kick in. This is usually in addition to more than just a basic leak. For example, if a covered peril occurs and breaks your pipes, causing a leak, not only will the leak be covered, but so will hotel, food, and gas during the time you are displaced.
What Isn’t Covered?
While there are those clauses that can help a homeowner out immensely if a leak causes damage, there are a lot of instances in which the homeowners insurance provider will not cover a leak and damage caused by it.
Normal wear and tear or negligence
In general, negligence, normal wear and tear, and backups from drains or floods will not be covered. Homeowners can seek an endorsement for floods and water backup, but these endorsements will increase the cost of the annual premium.
So, if you are a homeowner who is aware of a leak and you choose not to perform maintenance on it, and the problem turns larger and causes more damage, it will likely not be covered by your insurance. Your responsibility as a homeowner is to keep up with basic maintenance, so this type of negligence is not covered.
Mold damage
Mold can spread all over a home that has experienced water damage and trapped moisture. It can end up in your insulation, the walls, and more. It is hard to get rid of and expensive to mitigate.
For homeowners who are worried about mold, you can ask your insurance company if they offer an add-on or additional endorsement to cover mold. This can be expensive if you live in an area that is tropical or more prone to mold.
Flood damage
Unless you have an endorsement, a flood is not a standard covered peril for homeowners insurance. So if a flood unexpectedly occurs and causes damage to your home or your pipes to leak, you must pay for the costs to repair these issues out of pocket.
Sewer backup
If a sewer backup occurs, it can max out your pipes and cause them to leak. If this instance happens, and you do not have a sewer backup or water backup endorsement or add-on for this type of peril, it is likely that the insurance company will deny the claim.
Manage leaks immediately
In most cases, leaks are not covered under homeowners insurance. This means that it is of the utmost importance for a homeowner to care for a leak as soon as it is discovered. This will help mitigate damage and lessen the expense for the homeowner in the future.