Does Homeowner’s Insurance Cover Rotted Wood?

Homeowner’s insurance policies are designed to protect your most significant asset from unforeseen damage. Wood rot, a decay caused by prolonged moisture, can compromise a home’s structural integrity. Whether a standard homeowner’s insurance policy covers this issue depends on the damage’s specific circumstances and the policy’s language.

General Insurance Stance on Wood Rot

Standard homeowner’s insurance policies cover damage that is “sudden and accidental” and caused by specific perils. Wood rot, however, is a result of gradual deterioration, which policies often exclude. If wood rots over time due to a slow, undetected leak or lack of upkeep, it is not covered. Insurance companies view such issues as preventable through regular home maintenance.

Policies commonly exclude damage from “wear and tear,” “deterioration,” “mold,” “fungus,” or “rot.” These exclusions limit liability for gradual damage, not sudden events. For instance, if a poorly maintained window seal allows rain to cause wood rot over time, this damage would likely not be covered. Insurance covers unforeseen damages, not natural aging or neglected maintenance.

Situations When Wood Rot May Be Covered

While wood rot is often excluded, coverage may apply if it directly results from a “sudden and accidental” covered peril. The key factor is the water damage’s cause. If the rot stems from a sudden, unpredictable event listed as a covered peril in the policy, the damage may be included.

For example, wood rot caused by a sudden burst pipe or an accidental overflow from an appliance, like a washing machine hose detaching, can be covered. Insurance covers the cost to repair damage directly caused by such sudden events, which might include replacing rotted wood. Damage from a sudden, severe storm, such as a wind-damaged roof leading to immediate water intrusion and rapid rot, may also be covered.

Even in these scenarios, coverage applies to damage caused by the sudden event, not pre-existing rot or rot that developed slowly due to unaddressed issues. If water damage from a covered event is not promptly mitigated, leading to prolonged moisture and subsequent rot, coverage may be limited or denied. The policy covers direct consequences of a sudden, covered loss, not long-term neglect or gradual issues.

Steps After Discovering Wood Rot

Upon discovering wood rot, homeowners should take immediate steps. Document the damage thoroughly with clear photos and videos, capturing the extent of the rotted wood and suspected moisture source. This documentation provides crucial evidence for a potential claim.

Identify the moisture source to determine if it relates to a covered peril. Take reasonable steps to prevent further damage, such as stopping a leak or drying the affected area. Mitigating damages is often an insurance policy requirement, as failing to prevent further harm could impact coverage.

Review your homeowner’s insurance policy to understand your coverage, deductibles, and claim procedures. This clarifies your agreement regarding water damage and rot. After understanding your policy, promptly contact your insurance provider to report the damage and obtain repair estimates from qualified contractors.