Home Insurance for Water Damage

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Does home insurance cover water damage?

What’s typically considered ‘water damage’?

What kind of water damage is covered under home insurance?

How do I make a home insurance claim for water damage?

How can I prevent water damage?

Frequently asked questions

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Long story short

Water damage may be covered, but it’s worth checking anyway

Home insurance usually covers sudden water damage like burst pipes but often excludes gradual issues like leaks or mould.

Know your policy details

Your product disclosure statement (PDS) is your best mate here. It spells out exactly what’s covered and what’s not. It’s always worth giving it a good, careful read.

Making a claim is simple

Snap photos, contact your insurer, and submit a claim. Decisions generally take between 1 to 10 business days, so it pays to act fast.

Prevention goes a long way

Cleaning gutters, minding your tree roots, and checking inside plumbing for sneaky leaks? All smart moves that can help give you peace of mind – aside from getting home insurance of course!

Does home insurance cover water damage?

Most home insurance policies cover water damage, but whether you’re eligible for a payout really comes down to the type of water damage and what caused it. 

Generally, home insurance has your back for sudden and unexpected water dramas – things like a burst pipe, a heating system leaking, or your washing machine going rogue. These things happen more often than you’d think, making water damage a common home insurance claim. 

But heads up – long-term stuff like slow leaks, damp, or mould from dodgy maintenance, Yeah, unfortunately that’s usually on you (or your builder), not your insurer. 

To avoid turning your house into Waterworld, it’s a good idea to read your product disclosure statement (PDS) very carefully (you can typically find the PDS on the insurers’ website.) It’ll tell you what’s covered and what’s not when it comes to water damage, and any conditions or exclusions you need to know about. 

What’s typically considered ‘water damage’?

Sudden and accidental damage is typically what insurers cover when it comes to water damage. Burst pipes, overflowing appliances, sewer backup or storm damage to household items are just some of the types of water-related events that are generally covered under home insurance policies.  

The important thing to remember is that the water damage has to occur unexpectedly or out of the blue.  

On the other hand, gradual water damage caused by poor conditions or negligence may not be covered by insurers. It’s always best to read through the product disclosure statement (PDS) of any home insurance policy before purchasing so you understand the inclusions, exclusions, and limitations. 

What kind of water damage is covered under home insurance?

Home insurance policies – whether building only, contents only, or a combined home and contents –generally can cover three different kinds of water damage. Although whether all three are included as standard will depend on the specific policy:  

• Storm and rainwater cover (heavy rain, wind damage, earth movement)
• Escape of water cover (broken pipes, toilets, washing machines, taps and gutters)
• Flood damage (this often comes as an optional extra, so it may be worth considering if you live in a flood-prone area) 

Let’s examine those first two a little more (if you’d like more information on flood damage, you can check out our page on flood insurance): 

Typical inclusions and exclusions for storm and rainwater cover¹For more information, see Moneysmart – Home insurance 

Also, you typically won’t be covered for any loss or damage to the following:   

• Artificial grass or turf
• Courts designed for sports with fixed surfaces (such as a hard court)
• Fences and gates that are not in good condition
• Garden borders, driveways of any length, paths, or gardens
• Jetties, wharves, and pontoons
• Retaining walls
• Water in a swimming pool or spa, and their liners and/or covers 

Typical inclusions and exclusions for escape of water cover 

You may also be covered for reasonable costs to investigate the escape of liquid if it is causing damage to your home or contents. If you don’t know the source of the water escape, then many insurers will pay reasonable costs to locate the source (but this doesn’t typically include any burst pipe or other leak source). 

How do I make a home insurance claim for water damage?

If you find yourself in any of the unfortunate situations mentioned above, then you’ll want to know exactly how you go about making a water damage claim on your home insurance.  

Once you’ve assessed (and hopefully contained) the water damage, here are the next steps: 

• Contact your home insurer as soon as possible, making sure you include photos of the extent of the damage and any household items that have been affected.
• Submit your claim through your insurer’s website (if available – otherwise give them a call).
• Your insurer should then be in contact for a home visit to assess the damage.
• Wait for the outcome of the claim, which can take anywhere from 24 hours to 10 business days.
• If your claim is approved, your insurer may contact you to make some arrangements for repairs, replacing damaged goods, or reimbursing you to complete these tasks yourself. This can vary between insurers. 

Helpful tip:

Prevention goes a long way, but so does preparation. Keep a dedicated folder – physical or digital –with all receipts, home maintenance records, and before-and-after photos of upgrades like new plumbing. These things serve as solid evidence and can strengthen your claim if a water-related disaster strikes.

Adrian Bennett

General Manager for General Insurance

How can I prevent water damage?

Frequently asked questions

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Now that you know a little more about the effects of (and safeguards against) water damage, you can start comparing from a range of home and contents insurers. That’s where we can help! 

Save time and effort by comparing with iSelect.