Knowing exactly what your homeowner’s insurance policy covers is essential to making sure that you are protected against theft, damage, and loss. Yet coverage for one type of damage seems to cause a lot of confusion among homeowners – and that damage is water damage.
The reason that water damage can be so confusing is that there are different types of water damage. A standard homeowner’s policy will cover sudden or accidental water damage from the inside, such as a broken pipe, but may not cover water finding its way in from the outside, such as a flood. Where the water originated from can ultimately determine whether a loss may be covered or not. It’s important to be familiar with the nuances of the specific policy you’ve purchased.