Standard homeowners insurance typically covers water damage that’s sudden or accidental, like a burst pipe or appliance failure, but usually excludes damage from heavy rain, groundwater pressure, surface flooding or gradual seepage through foundation walls. Sump pump and sewer backup is normally covered when a water backup endorsement is added. Basement waterproofing itself is rarely covered as it’s considered to be preventative work rather than damage.
This is general information and should not be taken as insurance advice as coverage will always depend on your specific policy.
Most policies cover water damage that’s caused by sudden and accidental discharge. This is the opposite of gradual damage that accumulates over time, which is what usually causes water damage in your basement.
Key takeaways
- Standard homeowners policies generally cover sudden, accidental water damage and exclude gradual seepage.
- Sewer and sump pump backup coverage is an optional endorsement in most cases, not included in a standard policy, with limits running around $5,000.
- Surface flooding is excluded from homeowners policies and needs separate flood coverage that’s typically offered through the National Flood Insurance Program.
- Basement waterproofing is preventative maintenance, so it’s rarely covered under home insurance policies.
- Foundation settlement is excluded as it’s generally caused by earth movement.
The distinction that decides most basement claims
Sudden and accidental discharge describes water damage that happens at a specific, identifiable moment cause by failure in an appliance or the plumbing system.
Gradual seepage describes water that enters the home’s foundation slowly over a period of time.
For a basement specifically, most of the water that shows up will normally be a result of the “bottom up” category. This can happen when hydrostatic pressure pushes moisture through a foundation wall and causes slow seepage through small cracks.
It’s vital to read your declarations page before assuming that insurance will take care of water damage to your basement.
The Insurance Information Institute puts the covered side plainly: “The HO-3 covers you for accidental discharge of water from a plumbing system.” The excluded side is just as plain: “Water seepage is excluded under the HO-3.”
The question we hear most often when we’re giving a quote is “will insurance cover this?”
Most of the time, the honest answer isn’t the one homeowners are hoping for. Once we walk through the distinction between “sudden” versus “gradual,” people usually realize their situation falls on the gradual side, which is a tough thing to hear standing in your own basement.
What is usually covered
When basement water damage can be traced back to an identifiable failure inside your home, it’s typically considered to meet the loss standard outlined in a standard homeowners policy.
One example of what’s typically covered under basic homeowners policy is a burst or frozen pipe that fails suddenly and results in damage. Storm damage that breaches the building envelope could also be covered under the “failure” umbrella.
Water backup, and water entering through a sewer, drain or failed pump system is a different matter. According to the National Association of Insurance Commissioner, water backup of sewer is typically listed as an optional add-on rather than standard coverage, usually referred to as a water backup endorsement. Farmers Insurance notes that coverage limits for this endorsement commonly start at $5,000 and range up from there, so homeowners shouldn’t assume it’s automatically included in their policy.
What is usually excluded
When it comes to answering the question “will insurance pay for basement waterproofing,” the answer is often no. Waterproofing is preventative work that homeowners are expected to undertake themselves. Standard policies are built to respond to sudden damage that’s already happened.
Gradual seepage through foundation walls is the main problem most homeowners face. Hydrostatic groundwater pressure is the force that pushes water through a foundation wall or footer during wet seasons.
Surface flooding is usually excluded from standard policies entirely and requires its own coverage through the National Flood Insurance Program, which is run by FEMA. This is a separate policy that must be added onto your existing home insurance.
The Pennsylvania Insurance Department lists flood and earthquake as common exclusions from a standard homeowners policy and advises homeowners to talk to their agent or carrier directly about coverage.
Sump pump failure is also excluded from coverage without the water backup endorsement add-on. A pump failure is treated in the same manner as a slow leak, and viewed as a maintenance-related loss. In addition, damage that happens as a result of deferred maintenance (such as a crack that you didn’t notice or address) is generally excluded regardless of how the water got in.
If waterproofing is coming out of your own pocket, it’s worth knowing exactly what you’re buying. Our cost guide breaks down what moves the price.
Foundation repair and sagging floors
Foundation settlement is generally excluded from normal homeowners insurance coverage as it’s considered earth movement. Structural sagging that develops over a long period of time is another item that insurance companies consider to be a maintenance issue. Structural damage that results from a traceable event, such as a storm, is a different case and it’s worth having a professional assessment.
Foundation settlement can land repairs outside of your coverage on most standard policies. Sagging floor joists that develop gradually due to long-term exposure to moisture typically isn’t covered.
If the floors sagging or cracking can be traced back to a sudden event, the repair costs could be covered. A foundation repair assessment, or a closer look at sagging floor joists specifically, can tell you which pattern fits your house, providing more clarity on your policy’s declarations page details and exactly what that means in such a scenario.
Not sure whether what you’re looking at is structural or cosmetic? A free inspection will tell you.
What to document if water gets in
If you find water in your basement, what you do in the first hour counts almost as much as what caused it. Following these five steps can make the difference between a documented claim versus guesswork down the road.
- Photograph everything before you move a thing. Document standing water, staining, and the source of the water before cleanup starts.
- Write down the date and what the weather was doing. A claim that’s tied to a specific storm reads differently than one with no clear cause.
- Keep receipts for emergency mitigation. Maintain documentation as carriers sometimes reimburse steps taken to limit further damage.
- Find your declarations page. Before you call anyone, check your declarations page.
- Call the carrier before any demolition starts. Once damaged material is removed, it’s harder to establish what actually happened.
FAQ
1. Will homeowners insurance pay for basement waterproofing?
Usually not. Waterproofing is preventative work, so homeowners policies typically don’t reimburse for it. If water has already caused a documented, sudden impact, the damage caused may be treated differently than the preventative fix itself.
2. Does homeowners insurance cover water damage from heavy rain?
It depends on how the water got in. Wind-driven rain entering through storm damage from your roof or a window is typically treated as a covered scenario. Groundwater that seeps in through your foundation after heavy rain is generally not viewed the same way.
3. Is sump pump failure covered?
Generally not, unless you’ve added a water backup endorsement to your policy. Without this endorsement, sump pump failure is typically treated as a maintenance issue.
4. Does homeowners insurance cover foundation repair?
Foundation settlement is generally excluded, regardless of what caused it. If the foundation was impacted by a sudden event, like a storm, it may be treated differently.
5. Will insurance cover sagging floors?
Sagging floor joists that develop gradually due to long-term moisture are typically viewed as a maintenance issue instead of a covered loss. Sudden structural damage from an identifiable, covered event is a different case.
Free basement and crawl space inspections across Monroe County and Northeast PA.
Everything on this page is general information, not insurance advice about your specific policy. Basements by Burke doesn’t file or process insurance claims, and we don’t deal with adjusters on the homeowner’s behalf. That conversation is between you and your carrier.
We’re here to help you address the problems in your basement, and what it will take to fix them properly.
