Does home insurance cover plumbing problems?

If you're concerned about damage caused in your home by plumbing issues, consider reading the Product Disclosure Statement (PDS) closely before purchasing any insurance policy. The PDS can give you clarity about the specific incidents you might be covered for. Pay close attention to the water damage clause in the PDS or speak to the insurer for more details. Remember that insurance companies have different offerings, and your coverage also depends on the additional options you choose when you purchase the policy.

Most homeowners' insurance policies don't cover gradual water damage that could have been prevented through proper upkeep. This may include a leaking shower or wet areas that haven't been properly maintained. However, if you couldn't have reasonably known that the leak was there - such as inside a wall or under your house - some home insurance policies may cover this damage. Furthermore, if the plumbing issue that caused the damage was sudden and accidental, your homeowners' insurance might cover it.

Here are some examples of sudden and accidental issues that your insurance may cover:

Leaky roof

If your roof were to leak due to hail damage or a tree falling, you may be able to file a claim on your home insurance policy. However, if your roof is leaking due to poor maintenance, you might have to pay for the damage from your pocket.

Pipe bursts

You could potentially make a claim on your home insurance policy for damage caused to the property by leaking or burst pipes, if the issue affecting the pipe was unforeseen or accidental. For instance, if a pipe bursts due to freezing temperatures or other unexpected events, the resulting water damage might be eligible for coverage. However, if the pipe had been leaking or damaged for a while and preventive action was possible, your insurer might not clear your claim.

Damage due to leaks

While gradual damage due to water leakage may not be covered, some home insurance policies may help cover the repair costs for water damage caused by hidden leaks, such as those behind walls or under floors.

Water overflow

If your bathtub or sink overflows accidentally and causes damage to your property, some home insurance policies might offer coverage for the resulting damage. But you’ll need to consult your insurer or read the details in your specific policy to find out what exactly you’re covered for.

Accidental damage

Any accidental damage to plumbing fixtures, like a toilet or sink, might be covered by some home insurance policies. For instance, if a heavy object accidentally damages a fixture, your policy could assist with repair or replacement costs.

Gradual wear and tear

Most insurance policies don't cover gradual damage from a slow leak due to wear and tear. Regularly inspecting your plumbing and prompt repairs can help you prevent slow damage that insurance might not cover.

Maintenance issues

If the plumbing issues were a result of poor maintenance, neglect, or failure to address a problem that was known to you, your insurance may not provide coverage.

Flood damage

Some home insurance policies may not cover damage caused by flooding. If you live in a flood-prone area, it's worth checking the coverage offered by your insurer, and opting for a flood cover if you're worried about flood damage to your property.

If you want to attempt DIY plumbing at home, make sure you read the laws surrounding this. You typically need to be a licensed plumber to complete any work involving plumbing or drainage. But you may be allowed to do minor plumbing tasks independently, such as changing a tap washer or replacing a showerhead. Still, unless you have the necessary experience, it might be better to leave any plumbing work to the experts.

If you attempt plumbing work yourself and it leads to any kind of damage to your property, your insurance company may refuse to pay out any claim you make. In fact, some insurers might specifically exclude damage caused by DIY plumbing altogether. So make sure to check your policy before attempting any DIY work on your plumbing.

When you find any damage to your property due to a plumbing issue, make sure you take pictures of the damaged areas to document your claim. This may be useful in case you need to back up your damage claim with evidence of accidental damage. Once your insurer agrees, you can call a professional to make emergency repairs. 

When you file a claim for compensation, an assessor appointed by your insurance provider will visit your home for an inspection. If the assessor finds that the damage is caused by negligence or wear and tear, your claim will likely be denied. If you disagree with the assessor, you can request an assessment from another professional not affiliated with your insurer. 

If the cause of the damage is confirmed as an accident, your homeowner's insurance provider may reimburse you for the necessary plumbing repairs or request a preferred builder to make the fixes. Your insurer may let you hire a builder of your choice if your policy allows it. However, you may need to wait to get the repairs made until the insurer has completed the assessment.