Homeowners insurance and water damage in Georgia: what is usually covered

Sudden and accidental: the line most policies draw

Most homeowners policies cover water damage that happens suddenly and accidentally: a pipe that bursts, a water heater that ruptures, a washer hose that splits, an ice maker line that lets go. The policy usually pays to repair the damage the water caused, minus your deductible.

What it usually does not pay for is the part that failed. The burst pipe or the broken water heater is typically on you; the ceiling, floors and walls it soaked are what the policy covers.

What is usually excluded

These are the water losses most often excluded or limited in a standard policy:

• Gradual leaks that went on for weeks or months, like a slow shower pan leak
• Outside flooding from rising water, creeks or storm runoff
• Sewer and drain backups, unless you added a backup endorsement
• Groundwater seeping through a foundation
• Damage from poor maintenance or a known problem left unrepaired

Flooding needs its own policy

Water that comes from outside, like a creek over its banks or storm runoff pouring into a basement, is flood damage, and standard homeowners policies exclude it. Flood coverage comes from a separate flood policy, through the National Flood Insurance Program or a private insurer.

NFIP policies generally have a 30-day waiting period before coverage starts, so buying one when a storm is already in the forecast is usually too late. Homes near creeks around Atlanta are worth checking now, not after the next big rain.

Sewer backups, mold and frozen pipes

A sewer backup endorsement is an inexpensive add-on on many policies, and without it, a backup at a floor drain may not be covered at all. Mold coverage is often limited to mold that results from a covered sudden loss, sometimes with a dollar cap. Frozen pipe bursts are commonly covered, but some policies limit coverage if the house was left without heat.

Condo owners have one more layer: the association's master policy covers parts of the building, and your unit-owner policy covers what is yours. The condo leak guide explains how that usually splits.

How to check your own policy

Find the section on covered perils and the exclusions, and look for the words sudden, accidental, gradual, flood, surface water and backup of sewers or drains. Check whether you have a water backup endorsement and what your deductible is.

If something is unclear, ask your agent before a loss, not after. If you do have a loss, stop the water, document everything and report it promptly. The documentation guide covers what adjusters ask for, and Georgia's Office of Commissioner of Insurance and Safety Fire handles consumer questions about insurers.