Does Insurance Cover Plumbing Leaks?

Maybe. Maybe not. This is a concern many homeowners have, or anyone that owns, or even rents any type of property. And it all depends on what caused the water leak when the decision in made.

A homeowner’s insurance policy is designed to provide compensation from water damage caused by storms. A good policy should provide you full coverage should your home receive damage from a storm’s rain or wind. But any other type of water leak – that’s questionable.

Are Plumbing Leaks Covered By Insurance?

Suppose there is a leaky pipe hidden up in the ceiling or behind a wall? These types of leaks you won’t necessarily notice right away, especially if it is a slow leak or not in a part of the house you see every day, like your basement.

The damaged caused by these types of leaks is not covered, nor will any mold that develops be covered. Why? Insurers take the assumption that as the homeowner, you are responsible for leaking pipes. Only if the leak is caused by something external will insurers cover the damage.

Evets That Create Plumbing Leaks

As we mentioned earlier, an external event that causes a plumbing leak could be covered by insurance. One example would be that a rainstorm overwhelmed the city sewer system and the pressure surged into your home’s pipe system, causing pipes to bust.

An insurance policy should cover this type of busted pipe and the lead, just as it would plumbing pipes that become frozen. Now if you live in an earthquake prone area, and an earthquake busts a water pipe, the damage that ensues will not be covered. It is recommended that you purchase additional insurance coverage just for that type of possibility.

Water Damage From Plumbing Leaks

When it comes to claims, water damage is the second most common that the home insurance industry sees with hail and wind damage coming in next. But when you look at the exceptions that insurers put in place, it becomes complicated and creates more questions for the policy holders.

Water Damage Aren’t Just From Plumbing Leaks

Water damage is caused by different things in the home. Flooding – and this could be from Acts of God or something internal such as dishwasher or washing machine back, sink or tub overflow.

There is no right or wrong answer to the questions about what will insurance cover in water damage. The source of the problem that caused the damage is what will make that determination. And how did the damage occur – was it accidental (left the water running in the tub) or was it sudden (from a storm)?  Or is the damage from a gradual plumbing leak? In most cases of homeowner’s insurance, water damage from a gradual plumbing leak is not covered.

Gradual Damage –  Is That From Plumbing Leaks?

Damage that was sustained in gradual fashion is time is described as damage that occurred over time, slowly. Indicators of gradual damage is a paint chip on one wall that begins chipping away a bigger and bigger area.

No matter how simple of a layout your home has, there are nooks and crannies everywhere and within those is the electrical wiring, pipes, and ventilation systems. If proper maintenance isn’t done and checking the key components on a regular basis isn’t done, things could be happening that are visible to the naked eye.

Insurance companies have adjusters and experts that can tell when a water damage floor or wall is rom a problem has gradually been getting worse. If it is determined that there was an ongoing issue that was not addressed, the claim will most likely be denied.