First, the pipe must burst suddenly and unexpectedly. Water damage from a slow leak is a maintenance issue. Homeowners insurance does not cover maintenance-related repair.

Did freezing temperatures cause the pipe to burst? There may be no coverage if the home was unheated.

Finally, insurance may cover interior damage, but the homeowner may have to pay out-of-pocket to fix the broken water pipe and related plumbing fees. Pipe deterioration is related to structural wear and tear, which is not covered by homeowners insurance.

Multiple sections of the homeowners insurance policy are impacted by this type of loss. The dwelling portion of the contract pays for structural repair (drywall, flooring, carpet). Personal property (throw rugs, curtains, decorations) is covered under the contents section. One deductible applies to the claim. Check terms and loss settlement conditions outlined in your policy. Traditional homeowners policies cover structural losses on a replacement cost basis. Personal property losses are depreciated unless the policy includes contents replacement cost as an add-on.

The policyholder must report a claim right away and take steps to minimize further damage. Begin the cleanup process, but do not pitch anything until the adjuster has inspected the damage and given approval.