Generally speaking, most home insurance policies cover natural disasters, certain crimes, and accidents. Think: Wind and hail, dog bites, theft and vandalism, snowstorms, burst pipes. Beyond that general framework, however, there’s no blanket guarantee you’ll be covered.
Does Home Insurance Cover Floods?
If the “flood” you speak of is a puddle of water from a burst pipe, yes, insurance should cover it.
But if the flood is due to excessive rain, a hurricane, or an overflowing river, most standard home insurance won’t cover it. (The National Flood Insurance Program defines flooding as “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”)
“Many homeowners don’t realize that flood damage is not covered under typical home insurance policies,” says Amy Danise, chief insurance analyst at Forbes Advisor.
If you live in an area that’s prone to floods, you’ll want to purchase this additional flood insurance. This is especially true since flooding tends to cause expensive damage—even 1 inch of floodwater can result in $25,000 in repairs, on average. So don’t buy a home in a flood-prone zone without it!
Does Home Insurance Cover Water Leaks?
It depends. Damage caused by slow leaks—technically “seepage and leakage”—can be denied coverage. Water damage has to be “sudden and accidental”.
“A prime example is a client whose contractor nicked a pipe behind a wall. The pipe was connected to a seldom used guest bathroom, so nobody noticed the leak,” he recalls. “When they rented out the home years later, the tenants called a few months later, to report that the floorboards were warping.”
The slow leak caused $25,000 in damage—and the homeowner insurance didn’t pay out a nickel.
Does Home Insurance Cover Mold?
This depends on what caused the mold to appear. A policy might cover mold if it’s the result of a “covered peril,” such as water damage from a burst water heater or firefighters dousing flames on your home.
However, mold won’t be covered if it was caused by perils outside your policy, such as flooding (see above), or preventable ongoing problems, like a slow water leak or high humidity.
Does Home Insurance Cover Sewer And Drain Backups?
If the sewer backs up and fills your house with water, you might have to clean up the mess yourself—and on your own dime.
Does Home Insurance Cover Wear And Tear?
Sorry, your home insurance policy also won’t pay for damage caused by normal wear and tear.
They’re there for actual emergencies that can’t be avoided, not damage that could easily have been prevented. So make sure not to neglect little problems at home that could balloon into bigger problems later on!
Does Home Insurance Cover Acts Of War?
“If the U.S. government determines we are at war, and your home is destroyed as a result of the war, you will not be covered,” says John Espenschied, agency principal at InsuranceBrokersGroup.com. Destruction from acts of terrorism, however, is generally covered.
Courtesy of Realtor.com