Are Wells Covered by Homeowners Insurance?

Many property owners rely on private wells for water, raising questions about how these systems are covered under homeowners insurance. Understanding this coverage is important for well owners.

Typical Homeowners Insurance and Wells

A standard homeowners insurance policy provides protection across several categories: Dwelling, Other Structures, and Personal Property. Dwelling coverage applies to the main home and attached structures, like an attached garage. Other structures coverage extends to buildings or features on the property not physically connected to the main house, such as a detached garage, shed, or fence.

A well, including its pump and related components, falls under the “Other Structures” coverage because it is a detached fixture. This portion of the policy provides coverage for direct physical loss caused by specific perils. Damage from fire, lightning, vandalism, vehicle impact, or falling objects may be covered if the policy is on a “named perils” basis. If the policy is “open perils” for other structures, it covers all causes of loss unless specifically excluded. The coverage limit for “Other Structures” is a percentage of the dwelling coverage, typically 10% of the home’s insured value.

Common Causes of Well Damage Not Covered

Many issues affecting wells are not covered by standard homeowners insurance policies because they are excluded. Policies are designed to cover sudden and accidental damage, not issues arising from gradual deterioration or lack of maintenance.

Mechanical breakdown, such as well pump failure due to age, wear and tear, or internal malfunction, is not covered. Electrical surges are also excluded unless a direct result of a covered peril like a lightning strike. Damage from gradual deterioration, rust, corrosion, or inadequate maintenance falls under the wear and tear exclusion.

Water-related issues are another significant area of exclusion. Damage from floods, surface water, or hydrostatic pressure is almost universally excluded, requiring a separate flood insurance policy. Earth movement, including earthquakes, landslides, and sinkholes, is also excluded. Freezing damage to pipes and wells may be excluded if proper heat was not maintained. Contamination of well water due to pollution is also not covered, as it falls under environmental exclusions.

Expanding Well Coverage

Homeowners can broaden well protection beyond a standard policy by adding endorsements or riders. One option is Equipment Breakdown Coverage. This endorsement covers mechanical or electrical failures of the well pump and related equipment that a standard policy would exclude, often for $25-$50 annually with limits up to $50,000-$100,000. This coverage addresses breakdowns due to power surges, mechanical failure, or electrical problems.

Another endorsement is Service Line Coverage. This protects against damage to underground utility lines, including the water service line from the well to the house. This coverage may include damage from wear and tear, leaks, freezing, rust, corrosion, or mechanical breakdown of the service lines. While it covers the line itself, it does not cover the well structure or pump. Some insurers may also offer specialized well endorsements that provide specific coverage for certain types of well damage or collapse.

Reviewing and Confirming Your Coverage

Understanding your homeowners insurance policy is important for well owners. Start by reviewing your policy’s declarations page and the full policy document. Pay close attention to sections detailing “Other Structures” coverage, as this is where your well is likely addressed.

Look for any exclusions that might apply to wells, such as those for mechanical breakdown, wear and tear, or specific water-related damages. Examine any endorsements you currently have or can add, like Equipment Breakdown or Service Line Coverage, to understand their scope and limitations. It is beneficial to contact your insurance agent or company directly to clarify existing coverage, inquire about additional options, and discuss specific concerns related to your well, including policy limits and deductibles.