What kinds of water damage does home insurance cover?

A burst pipe. A leaky dishwasher. A malfunctioning sump pump.

No matter the source, dealing with water damage on your property can be a real hassle. Of course, it's also something you'll need to address promptly to avoid ongoing issues like rot, mildew, and mold.

If you carry homeowners insurance, the good news is you already have some coverage for water damage. However, not all types and sources of water damage are covered by a standard home insurance policy—so it's important to understand the ins and outs.

Home insurance and water damage: What's covered?

You should always read through your own homeowners insurance policy and declarations to understand exactly what's covered (and what's not covered) in your unique scenario. Generally speaking, a home insurance policy includes coverage for water damage that's caused by a sudden and accidental event. Some examples of this may include:
 

• A burst pipe in your wall
• An overflow of water from a malfunctioning appliance
• A leak from a roof that has sustained storm damage

If you have water damage from a sudden and/or accidental event, your homeowners insurance policy should kick in to cover any cleanup and restoration costs. It’s worth noting, however, that most homeowners insurance policies will not cover the cost of repairing or replacing an affected appliance (such as an overflowing washing machine) or plumbing system that caused the loss.

Likewise, when filing an insurance claim for water damage, you’ll be responsible for paying your deductible out of pocket before your coverage kicks in.

Does homeowners insurance cover rain damage?

Like any water damage, whether your homeowners insurance covers damage caused by rain will depend on how the damage occurs. If the rain gets into your home as the result of sudden and accidental damage—like if a rainstorm breaks a window or tears a hole in your roof—it will likely be covered.

However, if rain enters your home through an existing leak, such as through a window that does not seal properly or roof that was worn and damaged before the storm, it likely isn’t covered.

Will homeowners insurance cover mold?

Even after water damage is cleaned up, residual moisture can become trapped inside drywall, wooden framing, and flooring. Mitigation measures are very important to protect the home from further damage, including mold growth.

In general, homeowners insurance policies do not cover mold remediation unless the mold was caused by sudden and accidental water damage. Mold that occurs as a result of a gradual and/or preventable source of water damage (such as a slow leak over a period of several weeks or months) will not be covered.