Does Flood Insurance Cover Broken Pipes?

Water damage is a common cause of property loss, and insurance coverage can be complex. Homeowners often wonder if flood or standard homeowner’s insurance covers damage from broken pipes. Both policies address water issues, but they cover distinctly different sources. Understanding this distinction is important.

What Flood Insurance Covers

Flood insurance covers damage specifically caused by a “flood,” as defined by the insurance industry. This specialized coverage is separate from a standard homeowner’s policy, typically obtained through the National Flood Insurance Program (NFIP) or private providers. For insurance, a flood generally means a temporary inundation of two or more acres of normally dry land, or two or more properties, including the policyholder’s.

Flood insurance covers perils like overflowing inland or tidal waters, rapid surface water runoff, mudslides (flowing mud on dry land), and land collapse along shorelines due to erosion. For coverage, water must originate from an external source, such as rising water, storm surge, or broad surface water. It explicitly excludes damage from internal plumbing failures, leaks, or broken pipes, as these are not external flood events.

What Homeowner’s Insurance Covers

Standard homeowner’s insurance generally covers sudden and accidental water damage from within the home’s plumbing, heating, or air conditioning systems. This includes a burst pipe, leaking water heater, or broken washing machine hose. Coverage applies to damage to the structure and personal belongings, provided the water release is sudden and unforeseen.

Homeowner’s policies exclude damage from gradual leaks, continuous seepage, or neglect. A slow leak causing rot over time, for example, is likely excluded. Damage from sewer or drain backup is also generally excluded unless a specific endorsement is added. Standard homeowner’s policies do not cover external flood damage, which falls under flood insurance.

Determining the Water Damage Source

Identifying the origin of water damage is essential for directing a claim. The distinction is whether water came from an external environmental source or an internal plumbing system.

External flood indicators often include a visible waterline on walls, water entering from ground level, or widespread damage affecting multiple properties. Significant rainfall or a rising body of water outside also suggests an external origin.

Internal source indicators typically involve water localized to a single area without widespread external entry. This could be water from a fixture like a toilet or sink, or a visible pipe burst. Documenting damage with photos and videos is important, as this evidence helps clarify the water’s source for the insurer, ensuring the claim goes to the appropriate provider.

Filing a Water Damage Claim

When water damage occurs, prioritize safety by turning off the main water supply and, if necessary, electricity. Then, mitigate further damage by removing standing water, drying surfaces, and moving undamaged items. Document the damage thoroughly with photos and videos before making significant changes, as this evidence is critical for the claim.

After initial safety and mitigation, contact your insurance providers. If the source is unclear, notify both homeowner’s and flood insurance providers. Each company typically sends an adjuster to assess damage, determine the cause, and ascertain coverage. Provide all collected documentation, including photos and videos, to the adjuster. Understanding your policy’s deductible and coverage limits is important.

Citations:

FloodSmart. “What Does Flood Insurance Cover?”. https://www.floodsmart.gov/flood-insurance/what-is-covered
National Association of Insurance Commissioners (NAIC). “A Consumer’s Guide to Understanding Insurance”. https://content.naic.org/consumer_guide_understanding_insurance.htm