Will your insurance cover a burst pipe?
Cold weather can result in unwanted side effects such as a slippery commute and hefty heating expenditures. And if you’re a homeowner, frozen pipes can send shivers down your spine during the winter months. Not only will you have to replace the pipe if it bursts, but you may also suffer significant damage from gallons of water spilling into your home.
CNBC Select explains who pays for the damage caused by burst pipes and what to do if one explodes in your home.
What to do if frozen pipes burst
Cold conditions can result in unpleasant side effects, such as a slick commute and excessive heating expenditures. And if you’re a homeowner, frozen pipes can send chills down your spine throughout the winter. If the pipe bursts, you will not only have to replace it, but you may also suffer significant damage from gallons of water spilling into your home.
CNBC Select explains who is liable for paying for the damage caused by burst pipes and what to do if one explodes in your house.
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You can now contact your homeowner’s insurance company online or via phone. Nationwide, one of our top selections for homeowners insurance, includes a page dedicated to water damage, including information for customers and a link to file a property claim.
Lemonade is another insurance company noted for speedy claim acceptance. You can file a claim directly within the Lemonade app, which will walk you through the procedure. You might receive reimbursement for a basic claim almost immediately—but more complex circumstances may require a longer assessment.
What your insurance may not cover.
A standard homeowner’s insurance coverage does not cover the expense of repairing or replacing the burst pipe. Overall, according to the Allstate website, the source of the water damage is usually not covered. For example, if your dishwasher failed and caused your kitchen to flood, the insurance would cover the damage to the floor but not the cost of replacing your dishwasher.
On the plus side, if you have a home warranty, your policy may cover a damaged pipe. For example, Choice Home Warranty’s Basic Plan includes coverage for the plumbing system. The supplier also has a high coverage limit of $5,000 per insured item.
Note that home warranties only cover damage caused by normal wear and tear. If you have not maintained your pipes properly or taken any precautions to keep them from freezing, you may be out of luck. Furthermore, coverage varies by plan and provider, so if you have any questions about your coverage, contact your home warranty organization.
Similarly, if your insurance company determines that the damage was caused by your negligence, they may deny your claim. If you left your house for a few days and did not switch on the heat in the cold weather, they may presume the burst pipe was your fault. The same may happen if your pipes were not properly maintained.
Check your policy for a complete list of exclusions, as well as the situations under which they may apply.
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