Homeowners insurance covers plumbing damage when there’s a sudden and accidental problem, such as a burst pipe that floods your basement. But home insurance typically won’t cover preventable or gradual water damage.
The dwelling coverage component in your homeowners insurance pays to rebuild or repair damage to your house and any attached structures, like a porch or garage.
So if your hot water heater ruptures, damaging your floors and walls, this coverage can pay for drywall repair, new paint, crown molding and flooring replacement. Mold, fungus or wet rot that result from a sudden and accidental problem are also usually covered.
This coverage pays for damage to structures not attached to your house, such as a shed or fence. If there’s a plumbing problem covered by your policy that damages a detached garage, this coverage would pay for repairs.
Personal property coverage
Personal property coverage pays to repair or replace your personal belongings if they are damaged or destroyed by problems covered by your policy.
For example, if a pipe bursts and floods your living room, this coverage can pay to replace your water damaged furniture, rugs, electronics and even the books on your bookshelves.
Additional living expenses (ALE) coverage
Additional living expenses coverage reimburses you for extra expenses if you need to live somewhere else temporarily while your plumbing damage is repaired.
ALE pays the difference between your normal household expenses and new expenses you have because you can’t live at home. This can include the cost of staying in a hotel, eating out, a laundry service and paying to board your pets.