Home insurance can cover water damage

Home insurance for water damage is usually split into three separate types of cover: floods, storms and rainwater, and escape of water. Flood cover is often optional, and you need to be careful a claim isn't rejected due to what insurers call "gradual damage".

What's considered water damage?

Water damage can include sudden or accidental damage as a result of water, most commonly from a burst pipe, water overflow, flood or storm. Home insurance providers usually only cover you for sudden and accidental damage; that is, water damage that occurred quickly and unexpectedly. Gradual water damage, on the other hand, is usually not covered by most home insurance policies. Common claims can include the following:

• Burst taps or pipes, e.g. your kitchen sink pipe bursts suddenly
• Damage caused by a storm or a flood
• Broken kitchen or bathroom appliances that cause water damage
• Sewer backup and overflow

What's classified as gradual damage?

Gradual damage is damage that has developed over time; it is something that has started small but is visible in some way, sometimes even if the homeowner is not aware of it. It can include damage caused by mould, leaky taps and pipes (provided it starts slow), seepage and a deteriorating roof.

To ensure you avoid gradual damage, it's important to take preventative measures. Keep on top of home repairs and have your home inspected regularly to ensure there's nothing an insurer could deny was the result of gradual damage.

How does home insurance cover water damage?

Home insurance usually covers water damage that is the result of floods, storms and rainwater, and escape of liquid. If you live in a flood area, be sure to check you are covered. Flood is often an optional extra you may need to pay extra for. Below is a table of some insurers that include water damage cover for all three services.

	Flood	Storms and rainwater	Escape of liquid
Coles Home & Contents Insurance
Youi Building and Contents Insurance
Westpac Home and Contents Insurance
St. George Home and Contents
Real Top Home and Contents Insurance

Can home insurance cover leaking pipes?

Home insurance will most likely cover leaking pipes if the damage was caused by escaping water that occurred suddenly and without warning. In some cases, insurers will cover you if it occurred slowly over a period of time, but you could not have been reasonably aware of it.

A burst pipe generally comes under "escape of liquid or water" and can cover you for a sudden and immediate leak (not something gradual that you were well aware of) as a result of the following:

• Appliances, such as a washing machine, dishwasher etc
• Fixed items, such as showers, baths, sinks and toilets
• Fixed systems, such as drainage or sewage systems
• Water-filled items, such as aquariums and waterbeds

If you don't know where the leak is coming from, some home insurance providers will pay the reasonable costs up to a certain price to locate the source of the problem.

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Does home insurance cover storm surge?

Home insurance generally does not cover damage caused by storm surges. This is because it is considered an action or movement of the sea, which is usually excluded by most home insurance providers. An action or movement of the sea is generally defined as a rise in the ocean or sea level, a storm surge, a high tide or a king tide.

However, you are generally covered for storms. Damage that is caused by storms, lightning, wind, hail and snow are often included under storm cover as is stormwater overflow from roof gutters and their downpipes. This can also include instances where the storm causes mechanical, electrical or electronic breakdown and failure.

Does home insurance cover leaking roofs?

If water damage has occurred as a result of a poorly maintained or deteriorating roof, then your home insurance will most likely not cover you. If a leaking roof occurs as a result of sudden and unexpected damage, like a fallen tree, then your home insurance should protect you.

As a good rule of thumb, if you find yourself thinking "I should really fix this", then you should see that it's repaired as soon as possible. Otherwise, you risk any claim you make being rejected as gradual damage. This includes a roof that needs repair, be it because of rot, mould or corrosion.

How to make a water leak insurance claim in Australia

To file a successful claim for water damage through your home insurance, follow these steps:

1. Contact your home insurance provider as soon as there is damage.
2. Give them as much information as possible. Document the value of all the items you can think of that have been damaged and take as many photos as possible.
3. If possible, make an effort to control the leak and dry out your home to prevent further damage.
4. Your insurer will probably send someone to take stock of the damage.
5. Obtain at least three independent estimates from qualified general contractors to work out how much the damage has cost.
6. If your claim is approved, your insurer will talk to you about making necessary repairs to your home as well as replacing damaged contents.

Frequently asked questions about water damage

• Does homeowners insurance cover water damage in the bathroom?

  Yes. Homeowners insurance can cover water damage from the accidental overflow of an appliance or fixture like the toilet or bathtub. But keep in mind that in order to be covered for water damage in the bathroom, it needs to be sudden and unexpected.

• Does homeowners insurance cover water damage from heavy rain?

  Yes. Homeowners insurance generally covers water damage from heavy rain caused by a weather event like a storm, so long as it was damage caused by the storm that led to water leaking into your house. You won't be covered if there was damage present prior to the heavy rain. If there is something that needs repaired, you should always fix it beforehand.

• What does 'escape of liquid or water' mean?

  "Escape of liquid or water" is an insurance term that means you are covered for damage from liquid or water that is sudden and immediate or that has escaped slowly over time that you couldn't be reasonably aware of. It does not mean something gradual that you were well aware of.