Why is water damage not covered by insurance?

As stated above, for insurance to cover the event, it should generally be considered sudden and accidental. That means that anything that happens due to negligence or lack of maintenance on the part of the owner will normally not be covered. This is probably the first thing you think of if you're wondering what type of water damage is covered by homeowners insurance. Does homeowners insurance cover damage caused by rain or water? If it's storm damage, generally yes.

But does home insurance cover floods? Most of the time, no. In most cases, your home and personal property coverages will cover water damage as a result of extinguishing a fire. If a fire caused by grease destroys your kitchen and the water used by firefighters enters your living room, destroying floors, furniture and plasterboard, your policy must cover the damage. Standard homeowners insurance covers water damage when it's sudden and accidental, but floods caused by heavy rain are never covered.

However, standard home insurance doesn't cover floods caused by heavy rains or gradual water damage that occurs over time. According to the Insurance Information Institute, approximately one in 60 insured households files a claim related to water damage and freezing every year. If a storm causes an opening in the roof and water gets in, your home insurance policy may cover water damage. Make temporary repairs if water enters through the roof, windows, or doors; your insurance company will likely pay these costs when you file a claim.

It turns out that “flood damage has some complicated nuances that can alter the solution of the claim offered by your insurance company.” The images are especially useful if the mold develops in the future and can support your claim that the mold grew as a result of water damage and not through negligence. Most home insurance policies cover water damage if it occurs suddenly and accidentally from a source inside the house, such as a malfunctioning washing machine or a leaky roof. This means that if a snowstorm accumulates enough snow to cause the roof to collapse, the resulting damage is likely to be water and other types of snow will be covered. The only time homeowners insurance will cover damage caused by a hurricane is if the storm itself was the cause of the flood—for example, if the storm broke a window and caused your home to flood.

Generally, home insurance companies only cover mold if it's the result of a covered hazard, such as sudden and accidental water damage. If your home is unoccupied for an extended period and your pipes freeze because you forgot to turn off the water supply, your home insurance company will likely deny the claim. If a pipe suddenly breaks or is leaking due to a faulty pipe, your home insurance policy must pay for flood damage. If water damages other laundry items, such as a dryer or cabinets, your personal property coverage should cover the losses.

Mold damage is generally covered by home insurance, as long as it's not due to lack of maintenance or negligence. However, home insurance doesn't cover damage caused by floods caused by heavy rains or poor maintenance on your part.