Does Homeowners Insurance Cover Broken Pipes?

Cold weather has caused a pipe in your home to burst, resulting in water damage to your wood floors. Will my homeowners insurance cover the cost of replacing my pipes? It is determined by your policy.

Water damage may be covered by homeowners insurance, but this is highly dependent on the nature of the aquatic mishap. If the damage is caused by something unexpected or sudden, such as a broken pipe, a leaking air conditioning unit, or a malfunctioning washing machine, the policy will usually cover it.

Different Forms Of Damage

However, if the cause is "gradual damage" that occurs over time, such as a leaky pipe or a crack in your home's foundation, the insurance company may object. It can be difficult to determine whether or not homeowners insurance will cover plumbing.

All insurance policies exclude problems caused by normal wear and tear as well as gradual deterioration. There may, however, be some exceptions. For example, "resulting damage" could be caused by a cracked water tank, an exploding dishwasher, or, yes, a broken pipe. If a dishwasher catches fire, the answer to the question "does homeowners insurance cover burst pipes?" is yes.

How Insurance Views Pipes

Most insurance companies consider plumbing in a home to be normal homeowner maintenance. The property owner is responsible for ensuring that pipes do not freeze, that they are kept unclogged, that they are screwed tight, and that they are generally maintained—as well as for looking for mold, mildew, or other signs of water damage that indicate a small crack, hairline fracture, or leak somewhere.

Damage that occurs gradually as a result of a slowly leaking, rusting, or deteriorating pipe is not usually covered. Leaky pipes, on the other hand, are not the same as broken or burst pipes. These gushers have the potential to flood the entire house. As a result, the damage and destruction they cause are usually covered under the all-perils section of your homeowners insurance.

If you live in a cold climate and your broken pipe was caused by a lack of heat in your home, an insurance company may cite your negligence and deny your claim. Broken pipes must have occurred unexpectedly and should not have been easily preventable. If you ignore a leaking pipe until it bursts, the insurance company may see evidence of a long-term leak and deny your claim.

What Is Covered?

Some policies differentiate between resulting and initial damage. If, for example, water damage caused by a broken pipe or appliance is listed as covered in your insurance policy, you may be compensated for some or all of the damages caused, even if they did not occur immediately.

When a pipe bursts, homeowners insurance covers the damage to the carpet or rugs, the floor, the drywall, the paint, and so on. This coverage would also include any services required to clean up the water, dry out the home, and possibly prevent mold. The cost of repairing the busted pipe or replacing the broken appliance—the source of the problem—is, ironically, not covered.

How To Avoid Having A Water Damage Claim Denied

It's critical to have your plumbing inspected on a regular basis by a licensed professional, and to keep records of repairs and the professionals you've hired over the years to do inspections and maintenance. These records could be crucial in the event of a claim.

The lifespan of various components of your home's plumbing will vary. Pipes that have outlived their useful lives should be replaced. In northern climates, leave your home's heat on during the winter, even if it's set to low, especially if you're going to be gone for an extended period of time.

A water shutoff valve should be installed in every home, regardless of climate. Know where this valve is and that it is operational in case you need to turn off the water quickly.

What To Do If Your Claim Is Denied

If you were denied coverage for damage caused by a leaking pipe that you believe should have been covered, you should seek a second opinion from a licensed professional or consumer advocacy organization familiar with insurance in your area.

Your insurance company may also have an ombudsman who can assist you in reviewing your file. You can also seek advice or file a complaint with your state's insurance commissioner.

The Bottom Line

If you are unsure whether your insurance will cover water damage caused by a leaking or broken water pipe, you should consult with your insurance advisor, agent, or broker. You must review your policy's exclusions as well as the type of coverage you have.

Make sure you understand all of the coverages on your policy, as well as the exclusions and your responsibilities as a homeowner. In addition, to avoid surprises, perform regular maintenance on your home every spring and fall. Small repairs on a regular basis can help you avoid large expenses.

In addition, don't underinsured your home. Make sure you get the best insurance for your needs, and don't forget to ask about additional coverage if you think you'll need it.