Read your own policy first
This page is general information, not legal, insurance or financial advice. Homeowners policies differ from one insurer to the next, and the exact exclusion wording varies by policy form. The only way to know what yours covers is to read it and ask your insurer or agent.
The NAIC, the national association of state insurance regulators, suggests asking your agent two questions: “What types of water damage are not covered? Is mold damage covered?” If you can, ask before you ever need to file a claim.
The general rules below come from the Insurance Information Institute (III), the NAIC, FEMA and the Arizona Department of Insurance and Financial Institutions (DIFI). Treat each one as a starting point, then check it against your own policy.
What caused the water matters most
Standard homeowners policies care about how the water got in and how quickly it happened.
Sudden and accidental water is often covered
The III lists this among the water-related perils a standard HO-3 policy covers: “Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.” The NAIC says homeowners policies cover damage from a “sudden and accidental” discharge from a plumbing system.
DIFI says water damage and mold remediation not caused by a flood may be covered if they result from a sudden or accidental event. It also notes that insurers cite plumbing failures as the cause of a significant number of claims.
Examples that often fit this description: a supply line that splits under a sink, a washing machine hose that bursts, a pipe that breaks inside a wall. Even then, the details of your policy decide the outcome. See burst pipe water damage for what the cleanup involves.
Slow leaks and wear and tear usually aren’t
The III states plainly that “water seepage is excluded under the HO-3.” It adds that a policy “will not cover damage due to lack of maintenance.”
The NAIC puts it this way: “A homeowners policy isn’t a maintenance contract.” It doesn’t pay to repair items that simply wear out, and you’re responsible for upkeep, “such as repairing your roof when it begins to leak.”
Examples that often fall on this side: a drip under a sink that ruined the cabinet floor over months, a toilet seal that leaked into the subfloor, a worn-out roof. A leak can also fall between the two. How long it was going on may matter, so write down when you first noticed it and check how your policy words the difference.
Flooding from outside needs a separate policy
FEMA states that most homeowners insurance does not cover flood damage. The III says flood damage is excluded under standard homeowners policies, and the NAIC says you may qualify for flood insurance through the National Flood Insurance Program (NFIP) or a private insurer, depending on where your home is.
DIFI defines flood as “water that enters the home from the outside at ground level,” and says that coverage requires a separate policy bought in addition to homeowners insurance.
Timing matters here:
- There’s a waiting period. FEMA says there is typically a 30-day wait before an NFIP policy takes effect, with some exceptions, such as a lender requirement or a flood map change.
- Monsoon season is short. The National Weather Service and the City of Phoenix treat June 15 through September 30 as monsoon season, and the city says storms peak between mid-July and mid-August. A policy bought after the first big storm may not be in effect for the next one.
- Floodplain maps don’t tell the whole story. Maricopa County says 1 in 4 flood insurance claims come from outside a floodplain.
Rain that comes through a roof is a different question from floodwater. How your policy treats it can depend on why the roof let water in, and the NAIC counts repairing a roof that begins to leak as part of your upkeep. Ask your insurer. Our page on monsoon and storm water damage covers the cleanup side.
Sewer and drain backups usually need an endorsement
The III says: “Sewer backups are not covered under a typical homeowners insurance policy, nor are they covered by flood insurance.” The coverage has to be bought as a separate product or as an endorsement to your homeowners policy.
The NAIC lists sewer backup among common optional add-ons, described as coverage that “pays for losses to the house from sewer or drain backup.” If you’re not sure whether you have it, look in your policy for an endorsement with “water backup” or “sewer backup” in the name, or ask your agent.
Sewage cleanup is its own kind of job because the water is contaminated. See sewage backup cleanup for what it involves.
Mold coverage is often limited
The III describes mold, like rot and insect infestation, as a home maintenance issue that is generally not covered. There’s an exception: the III says that when mold growth is the direct result of a covered peril, such as a burst pipe, eliminating the mold may be covered.
The NAIC says most homeowners policies offer limited or no coverage for mold, and that you may be able to buy an endorsement for it. For flood policies, the III says federal flood insurance may cover mold and mildew only if it’s directly attributable to a flood. Check whether your policy has a separate limit or exclusion for mold.
The EPA advises drying water-damaged areas within 24 to 48 hours to prevent mold growth. Drying promptly helps on two fronts: it limits mold, and it shows you took reasonable steps to protect the home. Our guide to the signs of hidden mold explains what to watch for afterward.
You’re expected to prevent more damage
The NAIC says that when you have a loss, “You’re also required to protect your home from further damage.” Its examples are boarding the house up or cleaning up water from a backed-up drain. DIFI’s advice is similar: if water is actively running, stop it, and if it’s safe, prevent any further damage.
In practice, that usually means shutting off the water, getting standing water out and starting the drying. Our shut-off valve guide shows where the main valve usually is, and the first-hour checklist puts the early steps in order.
Document everything
A claim goes more smoothly when you can show what happened. Consumer guidance from DIFI, the III and the NAIC points to the same habits:
- Photos and video before cleanup. DIFI says to take pictures before any water mitigation company, plumber or restoration contractor shows up.
- A list of damaged items. The III suggests making a list and giving a copy to your adjuster.
- The damaged items themselves. The III advises not throwing them out until the adjuster has visited.
- Receipts. The III says to save receipts for what you spend, since you may be able to submit them for reimbursement later.
- Notes on every conversation. The NAIC suggests writing down the dates of conversations with your agent or adjuster.
- A log of the work. DIFI suggests recording times, dates, names of technicians and equipment such as dehumidifiers and air movers.
Ask the restoration provider for moisture readings and photos as the job goes, so you have them for your file.
Contacting your insurer
Call early. The III says to phone your insurance professional immediately, and the NAIC says to contact your agent or company as soon as possible.
DIFI suggests calling your insurance company or adjuster before you call a contractor, and confirming “what will be covered and for how much.” It also says: “Do not take the contractor’s word for what is covered.” As the policyholder, you get coverage answers from your insurer, not from anyone doing the work.
A few more points from DIFI and the Arizona Registrar of Contractors:
- Watch for pressure. DIFI advises avoiding high-pressure sales and people who come to the door offering services you didn’t ask for.
- Check the adjuster. DIFI’s website has a license search for adjusters.
- Check the contractor. Look up the contractor’s license with the Arizona Registrar of Contractors. The ROC notes that, apart from workers’ compensation, it doesn’t require contractors to carry insurance to hold a license, so ask for proof of insurance separately.
- Ask how payment works. Get the scope of work in writing before it starts, and settle how and when you’ll pay the provider.
Small claims and deductibles
Not every leak needs a claim. The NAIC notes that if the repair is not much more than your deductible, you might choose to pay for it without filing a claim, and that insurers report claims to claims databases. DIFI says filing a claim for a loss close to your deductible can result in a higher premium at renewal. Your agent can walk you through how that applies to your policy.
If you disagree with a decision
Start by asking your insurer to explain the decision, and keep notes of each conversation. The NAIC says state insurance departments have consumer services staff who can help you work with your insurer to resolve disagreements.
In Arizona, that’s DIFI. The Arizona Department of Insurance and Financial Institutions has a consumer help process on its website, including an online consumer complaint form. DIFI notes that facts in the complaints it receives become public records under Arizona law.