Most standard homeowner policies help cover water damage if the cause is sudden and accidental, but there may be situations your policy doesn't cover. Coverage for water damage depends on the situation and the source. If the damage is sudden, accidental, and comes from inside your home, you're generally protected with a standard home insurance policy. However, if the water damage is due to external flooding or careless repair, you won't have coverage.
Homeowners insurance doesn't cover mold caused by water damage or other problems, such as lack of maintenance, pool leaks, floods and earthquakes. For example, if a water heater broke suddenly and accidentally, the homeowner would have to replace that water heater or pay the bill to repair it. A water damage insurance claim only covers the home and personal belongings, not the item that caused the damage. Your home policy is likely to pay not only for anything ruined by fire and smoke, but also for water damage when extinguishing the fire.
Also keep in mind that some insurance companies may refuse to renew your policy if you file too many claims. Your insurer will likely request an inventory of your ruined personal belongings for reimbursement. For example, if the broken pipe was due to cold weather and you took precautions to prevent it from happening, that's probably covered by your home insurance policy. If the event that caused the damage occurred in a way that the landlord could not predict or prevent, it is considered sudden and accidental and is likely to be covered by homeowners insurance.
If the damage is relatively minor, you may not receive a large payment after the insurance company subtracts your deductible. A standard homeowners policy won't cover flood damage, so you'll need separate flood insurance for that. While you shouldn't schedule major work until your insurance adjuster has reviewed the damage, you can take smaller steps to protect your home. Before either type of home insurance coverage pays for water damage, a homeowner may have to pay a certain amount out of pocket, called a deductible.
A home insurance policy generally covers sudden and accidental water damage caused by causes such as broken pipes or a breakdown of. For example, putting a tarp on a leaky roof can prevent more water from entering and throwing away a damp carpet can prevent mold from growing. Another point to keep in mind is that home insurance only covers what has been damaged by water, such as the structure itself or personal belongings.
