Your Basement Flooded. What Will Insurance Cover?
Home insurance only covers basement floods if they happen for certain reasons.
Most policies cover damage from burst pipes, leaking appliances and overflowing toilets. But a lot of basement flooding happens when your sump pump can't keep up with heavy rain. This is called "water backup," and it's only covered if you buy a special add-on. Other common reasons for basements to flood include water seeping in through the walls and surface water coming in from outside, which aren't covered.
Does homeowners insurance cover basement flooding?
| Burst pipes | Surface water and true floods |
| Leaking appliances | Water backup |
| Overflowing plumbing | Seepage and ground water |
| Water damage after a fire | Water damaged caused by lack of maintenance |
Find Cheap Homeowners Insurance Quotes in Your Area
When does homeowners insurance cover a flooded basement?
Home insurance covers flooding caused by burst pipes, leaking appliances and overflowing plumbing.
A standard home insurance policy only covers certain types of water damage. So coverage depends on why your basement flooded.
Damaged and burst pipes
If you have a pipe that bursts, the resulting water damage should be covered by your home insurance policy. The damage to the pipe itself is usually not covered.
Home insurance doesn't usually cover slow leaks, though. And if the leak was caused by a lack of maintenance, the damage won't be covered.
Leaking appliances
If you have an appliance in your basement and it leaks, causing water damage, your home insurance will probably cover it. Washing machines, fridges, water heaters and air conditioners are all common in or near basements and can cause damage if they leak.
Overflowing plumbing
You also probably have coverage if your basement floods because a tub, sink or toilet overflows. This also covers if your washing machine or another appliance that uses water overflows, which is different than leaking.
Water damage after a fire
Putting out a house fire can cause water damage to your home and your belongings. Thankfully, home insurance covers the damage from water used to put out fires.
Find Cheap Homeowners Insurance Quotes in Your Area
Sometimes covered: Water backup
In many areas of the country, basements commonly flood during heavy rains when sump pumps, which help pump excess water out of your basement, can't keep up with the amount of water. Or a sump pump might fail without warning, causing water to back up into a basement.
Water backup damage is not automatically covered by home insurance, but you can usually buy an add-on so that you have coverage. Talk to your insurance agent or a contractor in your area to find out if water backup is common. If it is, it's probably a good idea to buy the extra coverage. Having the add-on is the only way that you'll have coverage if your basement floods because of water backup.
When do you not have coverage for basement flooding?
Home insurance doesn't cover damage from actual floods, water seeping in from outside or water damage caused by neglect.
Knowing what your home insurance doesn't cover can help you prepare by buying other types of insurance to fill the gaps. It also helps you take better care of your house by preventing problems that you know won't be covered.
Floods and surface water
Although it's common to call any water in your basement a flood, it's usually not technically "flooding." True floods are when large areas that are normally dry are covered in water. Floods usually happen after heavy rains or if bodies of water overflow their banks. Home insurance never covers damage from floods. If you live in an area where flooding is common, get a quote for a flood insurance policy.
Surface water is similar to a flood, but it doesn't have to cover a large area. Maybe a low spot in your backyard tends to be covered in water when it rains, and that water then leaks into your basement. But just like floods, home insurance doesn't cover the damage.
Install a water monitor to lower the risk of damage
Water leak sensors make a loud noise or send an alert to your smartphone when they get wet. It's a good idea to put water monitors in areas of your basement that might get wet, like around the sump pump or near a washing machine. That way, if water starts to overflow or get into areas where it shouldn't be, you'll be notified and can take action to lessen the damage.
There are lots of water sensors out there, and they range in price from around $40 to several hundred. Spending a bit of money on a sensor can help you avoid thousands of dollars in damage.
Water seeping from underground
After a heavy rain, sometimes water seeps through the soil and into your basement. Home insurance doesn't cover this type of damage. But you can lessen the risk of it happening by filling cracks in your basement walls and installing good drainage to move water away from your home's foundation.
Water damage caused by lack of maintenance
Home insurance doesn't cover any damage caused by poor home maintenance. For example, say you noticed some wet spots on your basement wall. If you ignore the problem and the spots continue to grow, your home insurance won't cover any of the damage. Even if the wet spots came from a leaking pipe that eventually bursts. Home insurance won't cover it, because you could have taken action to prevent the damage before it happened.
Frequently asked questions
My basement flooded. What will insurance cover?
Your coverage depends on what type of water damage is in your basement. You'll probably have coverage for things like burst pipes, leaking appliances, and overflowing toilets or sinks. But you won't have coverage for true floods, surface water or water seeping through the walls. If you have coverage, your policy will pay for the damage to your house and your belongings.
Does insurance cover basement flooding from rain?
Whether or not you have coverage depends on how the rain got into your basement. If a storm damages your roof and rain drips all the way to your basement, your home insurance will cover the damage. But if your sump pump fails during heavy rains and water backs up into your basement, you'll only have coverage if you have a water backup endorsement. And if surface water runs into your basement, you will not have coverage.
How much coverage should I have for water backup?
Match your water backup coverage to how much you have in your basement. If your basement isn't finished and you don't have much stuff down there, you don't need as much coverage. But if your basement has carpet or hard floors, drywall, furniture and home decor, you should have more coverage. You can work with an agent or do your own calculations to decide how much coverage is right for you.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.