Home insurance for water damage

What kind of water damage is covered by home insurance?

Home insurance for water damage is usually split into three separate types of cover:

1. floods
2. storms and rainwater
3. escape of water

Flood cover is often an optional extra you may need to pay extra for – so if you live in a flood-prone area, be sure to check you're covered. 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

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.

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:

Does home insurance cover leaking pipes?

Yes, home insurance covers leaking pipes if the damage was caused by escaping water that occurred suddenly and without warning.

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 covers storms

Yes, standard home insurance policies generally cover storms. Storm cover can include damage caused by:

There is one main exception – home insurance doesn't usually cover damage caused by storm surges. This is because it is considered 'an action or movement of the sea', which is excluded by most home insurance providers. Luckily, it's not that common.

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. Keep in mind that it needs to be sudden and unexpected – for example, a plumbing malfunction or broken pipe.

• 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.

• 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. It can include damage caused by mould, leaky taps and pipes (provided it starts slow), seepage and a deteriorating roof. Keep on top of home repairs and you can avoid insurers denying your claim as a result of gradual damage.

• Does home insurance cover leaking roofs?

  Yes. Home insurance covers leaking roofs but only as a result of sudden and unexpected damage like a fallen tree or storm.

  When am I not covered for leaking roofs?

  If it's due to gradual damage and deterioration – for instance, a roof that needs repaired because of rot, mould or corrosion.