Homeowner’s insurance typically only covers water damage that occurs suddenly and is accidental. This includes water damage from a burst pipe, malfunctioning appliance, and plumbing fixtures. You must respond to this type of water damage right away to ensure that the costs will be covered. Water damage will not be covered by your insurance if it occurred due to an unresolved maintenance issue, such as a slow leak that was never fixed. Homeowner’s insurance will cover the cost of the restoration of the damage caused by the water but will not cover the repair or replacement of the source of the water, such as a burst pipe.
One thing to remember is that homeowner’s insurance policies do not cover damage from flooding or sewage backups. You can purchase separate flood insurance from the National Flood Insurance Program and additional water backup coverage to cover damage from these events.