Does Homeowners Insurance Cover Plumbing or Not? A Complete Overview

One of the most asked questions of homeowners across the USA is: Does homeowners’ insurance cover plumbing? The answer is in some cases, but not always. If your plumbing-related issues are accidental, such as a burst pipe flooding your living room, then you can reap the benefits of your homeowners’ insurance. On the other hand, if the plumbing problem is a result of wear and tear, then you will not receive coverage for the cost of repair or replacement from your insurance.

You need to have an understanding of how your policy works. There is a fine line between damage caused by plumbing and a damaged plumbing system, which is what makes the difference. So, let me break everything down in detail for you.

What Plumbing Issues are Covered by Insurance

The insurance companies provide coverage based on one simple fact, and that is whether the issue is accidental or not. If you have maintained the plumbing system and an unexpected damage occurs, you have a high chance of getting covered.

1. Burst Pipes: Pipes primarily burst due to two reasons. One is an extreme change in temperature, and the other is the buildup of pressure. If a burst pipe makes your living room completely wet overnight, your homeowners’ insurance will pay for the resulting water damage. 

2. Accidental Overflow: The appliances present in your home, such as washing machines, dishwashers, and heaters, can malfunction, which may lead to overflow of water. If, under these circumstances, the floors, walls, or any other personal belongings of your house get damaged, the cost to repair will come under your policy. Check this guide to get to know some useful tips for upkeep your home appliances.

3. Frozen Pipes: You may witness some serious issues in the winter season with your plumbing. Your home pipes may freeze and ultimately burst. The resulting damage due to this will be covered by your insurance company. As the famous saying goes, prevention is better than cure. So I suggest that you learn how to prevent frozen pipes in winter.

4. Water Damage: In case the structure of the house or personal belongings receives water damage, the insurance company will not cover the pipe leakage, but will pay for the following:

• The cost of repairing water-soaked walls, ceilings, and floors.
• Restoration cost of woodwork.
• Replacement cost of personal belongings such as electronic goods, furniture, and others.

What Plumbing Issues Are Not Covered by the Insurance Company

Homeowners insurance will have your back in case of accidental damage, but you won’t receive coverage if the issue is raised because of poor maintenance or excluded risks. So, you’d better know what the main reasons are for your request being denied by the insurance company.

1. Gradual Leakage of Water: In case your kitchen sink has been dripping over a long period and due to that, the cabinet below the sink gets damaged, and you seek repair costs from your insurer, then your insurer is likely to deny your claim, as gradual leaking is not an accident but a maintenance problem.

2. Negligence from You as a Homeowner: Policyholders are expected to maintain the plumbing system regularly. Neglecting leaks can lead to serious structural damage, which will automatically discard your claim as the insurers will make an argument regarding how the damage was preventable.

3. Sewer Line Backup: If the wastewater clogs your drains, the market standards say that most of the policies don’t cover the mess created by this unless you have made a purchase of sewer backup coverage.

4. Damage Caused by Mold: If you ignore leaks for a prolonged period, then mold can develop, and the cleanup cost will not be covered by the insurance company.

Areas With Optional Coverage

Some plumbing-related issues fall into the gray areas where you need to buy an optional add-on to get coverage.

• Water Backup Coverage: This will help you in case sewage water or drain water gets backed up in your pipes and toilets. If you don’t have it, then as a homeowner, you have to spend a lot on cleanup.
• Service Line Coverage: Most of the insurers in the USA are offering additional coverage for protecting underground plumbing, sewer, and water lines that connect your house to the lines on the main street. If you don’t have this added on while purchasing your insurance, then any breakage or collapse on underground lines is your own responsibility. 
• Mold Coverage: If your house is located in a region where most of the days remain humid or the house itself is old, then the chances of mold growing are higher. It is strongly recommended by me that you purchase higher limits to get mold coverage.

Some Examples of Claims

To give you a better idea, let me tell you about some real-life scenarios.

• Covered Case: A pipe in your attic freezes and bursts overnight due to a winter cold snap. Water seeps through your ceiling, causing damage to your carpet and plasterboard. The cost of fixing the damaged rooms and possessions will usually be covered by your homeowners’ insurance; however, you will be responsible for replacing the burst pipe.

• Not Covered Case: The galvanised pipes in your house are twenty years old and rust gradually. A concealed leak behind your bathroom wall grows over several months, causing decay and mould. Your insurance is likely to reject the claim since it is linked to carelessness and aging plumbing.

• Possibly Covered Case: When it rains a lot, a sewage line backs up, flooding your basement. Your insurance could assist with cleanup and repairs if you have water backup coverage. You would probably have to pay out of pocket without it.

How to Receive Maximum Benefit of Homeowners Insurance

There are several reasons why the company may deny your claim. To make a strong case for yourself, you need to do the following:

• Document the Damage: You should click pictures of the damage as soon as it happens. This visual proof will make it undeniable that the damage is purely accidental.

• Prevent Further Damage: Most insurers will encourage you to mitigate damage by shutting off the water supply, cutting the electrical supply to the flooded area, and calling a plumber straight away. 

• Report Immediately: You should not delay in the process of reporting the damage. The faster you file, the simpler it is for the adjuster to assess the cause and extent of the damage.

• Keep Maintenance Records at Your Fingertips: In case the insurance company raises questions regarding your maintenance of the plumbing system of your house, you should have all the plumbing inspection data and receipts of repairs at your fingertips.

Final Thoughts

I hope that you have found the answer to the question that you have been asking: Does homeowners’ insurance cover plumbing? The bottom line is that it often covers the harm brought on by plumbing malfunctions rather than the price of replacing or repairing outdated or defective pipes. Sudden accidents, such as a pipe burst, are included, but leakage for a prolonged time or sewer backup is not included.

Since every policy comes with its own pros and cons, the smartest decision that you can make is to review and compare. Consider opting for endorsements, as you will receive additional benefits from them.

If you are still unsure about your current status regarding your policy, you should contact insurance professionals for a review or inspection.

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