Are Leaks Covered by Building Insurance?

The building coverage of your homeowners policy usually covers water leaks caused by faulty pipes, as long as it wasn’t due to negligence.
You will need other types of coverages to ensure all your belongings are covered in case of a flood. Dwelling coverage protects your home’s roof, walls, and floor. Property coverage replaces clothes, furniture, electronics, and other personal contents within the structure. If you are forced to temporarily move out of your home due to a disaster, you’ll need additional living expenses (ALE) coverage to pay for your accommodation and food expenses.

Building insurance covers leaks due to plumbing malfunction and broken pipes, but not necessarily all types of water damage. It doesn’t cover damages resulting from the normal wear and tear of the building’s plumbing system. You need additional coverage for problems such as a backed-up drain. When you file a claim, your insurer will send an adjuster to your home to evaluate the damage. If the adjuster decides if the leak occurred due to the wear and tear or lack of maintenance, it would not be covered.

The best way to spot water leaks is to look for them when you periodically inspect your home. Not all leaks are visible, but they can usually be spotted on ceilings where there’s a bulge or stains. Be aware that even small leaks can grow quickly, so they should be addressed immediately. At night or when the house is quiet, listen to the dripping noise or trickling sound the leaks (if any) make. The musty smell in your house is another telltale sign of a leak.