When Water Damage Isn’t Covered by Insurance

At Assurance Restoration, we’ve seen firsthand how devastating water damage can be. Whether it’s a burst pipe in the middle of the night or a heavy storm that turns your home into a wading pool, the emotional and financial toll is real. One of the most common and heartbreaking conversations we have with homeowners happens when insurance doesn’t cover the damage — simply because the source of the water was outside the home.

If you’ve experienced water damage recently or want to prepare for the unexpected, here’s what you need to know.

Water Damage from Inside the Home: Usually Covered

The good news is that most homeowners insurance policies do cover water damage that originates inside the home. This includes incidents like:

• Burst or leaking pipes

• Overflowing bathtubs or sinks (when accidental)

• Water heater failures

• Dishwasher or washing machine malfunctions

In these cases, your policy typically covers the repair of the damaged area, such as flooring, drywall, and insulation. However, it may not cover the broken appliance or pipe itself — always check the fine print.

Water Entering from Outside: Usually Not Covered

Here’s where it gets tricky — and where many homeowners find themselves caught off guard.

If water enters your home from outside, it’s usually not covered under a standard home insurance policy. This includes:

• Rainwater seeping in through the foundation

• Flash flooding

• Rising rivers or creeks

• Storm surge

• Snowmelt runoff

Even if the water damage inside your home looks the same as a pipe burst, your insurance company will likely deny the claim if the water came from outside. That’s because these situations fall under a different category: flood damage.

Protect Yourself with Flood Insurance

To be financially protected against outside water events, you need flood insurance, which is not included in your homeowners policy. Flood insurance is typically purchased separately through the National Flood Insurance Program (NFIP) or through private insurers.

Flood insurance covers:

• Structural damage caused by flooding

• Damage to your flooring, walls, and insulation

• Certain personal belongings (depending on the policy)

And here’s an important fact: Over 25% of all flood insurance claims come from properties outside high-risk flood zones. You don’t need to live near a river to be vulnerable.