Water damage is one of the most common reasons people make claims on their home insurance. Burst pipes, leaky appliances, and flooded basements are just a few of the ways you could discover exactly what is and is not covered by your home insurance policy.
As reported by Insure.com, here are several common water damage scenarios and their insurance consequences.
Scenario 1: A sewer backs up, flooding your basement.
Are you covered? No. Standard policies don't cover it, and many specifically exclude damage from sewer back-ups. Special endorsements are available, at an additional cost, for sewers and drains.
Scenario 2: Your bathtub overflows.
Are you covered? Yes. You are even covered if the bathtub overflowed because you forgot to turn off the faucet.
Scenario 3: A nearby lake or river overflows its banks, causing a flash flood in your living room.
Are you covered? No. Flood damage is not covered by homeowners insurance. You must purchase flood insurance from the federal government. You can purchase flood insurance as long as your community participates in the National Flood Insurance Program.