Does a Home Warranty Cover Water Damage?

Home warranty water damage coverage

When you sign up for a home warranty, you likely won’t see water damage as a plan feature. What you will see are plans that cover water-related systems and appliances like:

• Pipes
• Water heaters
• Well pumps
• Sup pumps
• Roofs
• Septic systems

Getting a policy that includes coverage of these systems (if you have them) may add some water damage coverage to your plan. If one of these systems breaks down, there’s a chance your policy could cover some water damage from the malfunction.

Most home warranty plans will pay to repair or replace the system or appliance that caused the leak — like a broken pipe, leaking water heater or malfunctioning washing machine — if it fails due to normal wear and tear and is included in your plan.

However, home warranties generally do not cover the damage that results from the leak itself. This means repairs to walls, floors, ceilings, cabinets or personal property damaged by water are usually excluded. These repairs are often handled by homeowners insurance policies, not home warranties.

Here are examples of how common scenarios are typically handled:

• Burst pipe: If a plumbing pipe bursts due to normal wear and tear, a home warranty may pay to repair or replace the pipe. However, the warranty usually does not cover water damage to floors, walls or personal belongings caused by the burst.
• Washing machine leak: If a washing machine covered by your plan leaks because of a mechanical failure, the warranty may cover repair or replacement of the appliance. Damage to the surrounding area, such as ruined flooring or drywall, is typically excluded.
• Roof leak: Some home warranty plans offer limited roof leak coverage, but this is often restricted to repairs of the roof itself. Water damage inside your home, like stained ceilings or mold, is generally not included.
• Hidden leaks: If a leak from a covered plumbing component is hidden behind walls or under floors, the warranty might cover accessing and repairing the pipe, but not the cost to repair secondary water damage or mold remediation.

Be sure to ask your home warranty company for more information about your coverage.

Water damage warranty coverage exclusions

If you’re lucky enough to find a company that offers water damage coverage, there are still a few things that may result in a denied claim. These include the following:

• Preexisting problems with the systems or appliances
• Preexisting water damage
• Failure to properly maintain the systems or appliances

What to do if your home warranty doesn’t cover water damage

Even if your home warranty doesn’t cover water damage, getting coverage for water-related systems and appliances is a good idea. As soon as something goes wrong, you can get the item fixed before it leaks enough to damage your floors or walls. Also, it’s a smart move to put a water leak detector around these appliances to catch problems early.

If you’re not already covered by your home insurance, you can often add water damage coverage. Just remember that the insurance company won’t cover the repair or replacement of whatever caused the water damage. That’s what home warranties are for.

Bottom line

You’re not likely to get water damage coverage through a home warranty. The good news is that your home insurance should cover water damage, and your home warranty may cover the repair or replacement of whatever caused the leak.