Homeowners insurance will only cover plumbing failure caused by sudden, unexpected water damage

Plumbing damages due to wear and tear will not be covered. Erdark/Getty Images

• Homeowners insurance covers dwelling and personal property damage caused by a burst pipe. 
• Leaking pipes won't be covered if caused by wear and tear, flood, or sewage backup. 
• Mold damage isn't covered if it developed due to negligence.
• See Insider's guide to the best homeowners insurance companies

Homeowners insurance protects your dwelling and personal property from damage. It also offers personal liability coverage and loss of use coverage. 

Homeowners insurance will generally cover plumbing damage and pipe leaks caused by a sudden and unexpected failure. However, there are some exceptions.

Does homeowners insurance cover pipe leaks?

Homeowners insurance will cover plumbing damage from burst pipes as long as its caused by a peril listed in your policy and not a result of negligence, says Ashlee Tilford, managing editor of Insurance.com. 

• Dwelling coverage: If a covered pipe leak damages the structure or foundation of your home, your homeowners insurance will reimburse you for the damages. This coverage will also include damage to built-in appliances.
• Personal property coverage: If a burst pipe causes damage to your belongings, your personal property coverage will cover the damage. However, most homeowners policies have a coverage limit of $2,500. So, if you have high-end electronics or custom jewelry, your recovery amount will be capped unless you purchase an add-on rider for special jewelry or electronics.
• Loss of use coverage: If your house is unlivable due to water damage from a burst pipe, some homeowners policies have "additional living expenses" (ALE) coverage for alternative housing. However, Tilford warns not to assume your policy will cover additional living expenses. She recommends contacting your insurance provider before leaving your home.

When doesn't homeowners insurance cover pipe leaks? 

Homeowners insurance won't cover all water damage caused by leaking pipes. Damage resulting from negligence and normal wear and tear of pipes is not covered.

Standard homeowners insurance also won't cover damage from backup or sewer lines. That coverage is available as a rider. 

Additionally, flood damage is not covered under the standard homeowners insurance policy and will require separate flood insurance. 

Wear and tear damage

Your homeowners insurance policy will not cover water damage resulting from neglect. For instance, if the pipe has been leaking small amounts of water for a while, and you file a claim only after significant damage has been done, your claim will be denied. 

A home warranty will cover repairs related to wear and tear before the damage happens. 

Sewage backup damage

If damage from a sewer backup is sudden, unexpected, and related to a covered peril, your homeowners insurance will cover it. However, if the backup is caused the leaking pipe (usually due to a lack of maintenance), homeowners insurance will usually not cover the damage. 

While not insured by a standard homeowners insurance policy, you can purchase sewer backup coverage as a rider to your policy.  

Flood damage

If a body of overflowing water enters your home and causes damage to your pipes, you will need separate flood insurance to cover repairs for the damage. 

Flood insurance is a standalone policy and does not come with your homeowners insurance coverage. While flood insurance is not legally mandated, floods can happen anywhere. Communities at low to moderate risk of a flood receive one-third of federal disaster assistance for flooding, according to the Federal Emergency Management Agency (FEMA). So, it is essential to buy flood coverage, even if you don't think you'll need it. 

You can buy flood insurance through the National Flood Insurance Program (NFIP), administered by FEMA or a private insurer. 

Mold damage

Most homeowners insurance policies will not cover mold damage unless it is caused by a covered peril like a burst pipe. 

Mold needs time to grow and warm weather. Therefore, homeowners insurance will not cover the damage if you fail to address the growing mold and it damages your pipes. 

Check for yellow and brown water spots on the floor or ceiling to prevent mold damage. Look for peeling paint or buckling floor boards. These are usually signs of a leak.

Homeowners insurance companies usually give discounts on annual premiums to homeowners with smart home sensors that detect temperature, humidity and other conditions that could lead to mold. Check with your provider to see if that's available.

How to file an insurance claim for water damage

Steve Wilson, senior underwriting manager at Hippo Insurance, gave these four steps for filing a claim for water damage with your homeowners insurance company:

1. Contact insurance carrier. Your carrier may provide a list of contractors.
2. Ask your carrier for advice to help prevent further damage. 
3. Take photos or videos of the damage and where it is located.
4. Prevent further property damage. Focus on a temporary fix so insurance can look and properly access a permanent fix from a professional. Make sure water can run in all faucets. Leaks are usually the first sign of damage, especially in less-used rooms like guest bedrooms.