Coverage for water damage is limited in homeowner insurance policies. The policy covers the damage to your home if a pipe burst, for example, or if the wind blew your roof off and rainwater came in, but most other water losses are excluded. A typical homeowner policy will have an exclusion that defines water damage in three broad categories.
The first is flood, which includes flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind. Flood insurance is available through the National Flood Insurance Program. Your insurance company or agent can help you with flood insurance information and pricing.
The second is water or waterborne material that backs up through sewers or drains. Most insurance companies have an endorsement that provides limited coverage for this for an additional premium. Your insurance company or agent can explain the coverage available and the cost.
The third is water or waterborne material below the surface of the ground, including water that exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure. Since this is not covered, we recommend consumers regularly inspect gutters, downspouts, drainage systems, and outdoor irrigation systems to prevent this type of loss.