Does Homeowners Insurance Cover Flooded Basements?

Standard homeowners insurance policies cover flooded basements when the water damage is caused by a covered peril, like a burst pipe, but not a natural disaster. Specifically, this type of basement damage falls under dwelling coverage.

Dwelling coverage refers to the part of a homeowners insurance policy that pays to repair or rebuild the actual structure of the home. It is typically the highest coverage limit in a homeowners insurance policy.

In claims involving flooded basements, the policyholder must prove that the cause of the flood is a covered peril for dwelling coverage to take effect.

Generally, whether homeowners insurance covers flooded basements depends on the cause of the flooding. If it is a result of a covered incident, then the insurance policy will reimburse you for the damages.

For flooded basements, the cause of the flooding is key in determining whether the policyholder can file a claim. Covered perils may vary depending on the type of homeowners insurance policy you buy. However, there are certain events typically included in standard policies.

For instance, standard home insurance policies tend to cover flooding due to a broken appliance like a washing machine or air conditioning unit, leaking water heaters and bursting pipes. If the flooding is caused by an overflowing tub, sink or pool, your policy may also cover it. Other possible scenarios wherein homeowners insurance applies include vandalism and water damage after a fire.

There are specific types of flooding that homeowners insurance does not cover. These include:

• Flooding due to a natural disaster
• Sewage backup
• Sump pump overflow
• Seeping groundwater
• Maintenance problems or negligence

In some cases, the insurance company may opt not to approve an insurance claim for flooded basements, even if the cause is a covered peril. This could happen if the insurer proves that you have somehow caused the peril yourself.

Buying homeowners insurance is a smart way to protect yourself against expensive cost issues involving your home. However, it’s even better to prevent issues when you can. When it comes to flooded basements, ensuring proper maintenance and conducting regular inspections of your appliances, pipes and systems can help.

Most major insurance companies, such as State Farm, Progressive and GEICO, as well as smaller ones like Lemonade or Hippo, offer homeowners insurance. On average, the cost of homeowners insurance is about $175 per month.

That said, costs may vary per company. Shopping around and comparing home insurance can help ensure that you are getting the best policy.

The price you’ll pay for a homeowners insurance policy also depends on the value of the items you own. Use MoneyGeek’s personal property calculator below to get an idea of how much coverage you may need.