Burst Pipe Water Damage: Insurance Coverage And Costs For Landlords

A burst pipe can cause thousands of dollars in water damage in just minutes—so it’s no surprise that these are some of the most common and costly insurance claims landlords face. Whether it’s from freezing temperatures, corrosion, or old plumbing, pipe failures in rental properties are both disruptive and expensive.

In this guide, we’ll break down what landlords need to know about insurance coverage for burst pipes, average repair costs, and what to do if your property experiences water damage.

What Causes Pipes To Burst In Rental Properties

Pipes can burst due to a range of avoidable and unavoidable issues. Some of the most common causes include:

• Frozen water expanding in the pipes (common in cold climates or vacant properties)
• Corroded or aging pipes that fail over time
• Shifting foundations that damage pipe joints
• Poor installation or DIY plumbing fixes
• Excessive water pressure or sudden pressure drops
  

For landlords, the key risk is delayed detection. If the property is vacant—or the tenant doesn’t report the issue quickly—the resulting water damage can affect drywall, flooring, ceilings, and even structural elements.

Average Repair And Restoration Costs

According to national averages, the typical cost of repairing a burst pipe ranges from $500 to $1,500 for plumbing repairs alone. But the total cost of a water damage event caused by a burst pipe is often much higher—between $2,000 and $10,000 depending on the extent of damage.

These costs may include:

• Pipe repair or replacement
• Drying and dehumidification (water mitigation)
• Replacing flooring or baseboards
• Drywall and ceiling repair
• Mold remediation
• Appliance or cabinet replacement
  

For landlords, this doesn’t just mean repair bills. It may also result in loss of rental income if the property becomes temporarily uninhabitable.

Is A Burst Pipe Covered By Landlord Insurance?

Most landlord insurance policies do cover sudden and accidental water damage caused by a burst pipe. That typically includes damage to the structure itself—such as walls, ceilings, and floors—and may include additional coverage for loss of rent if tenants must move out during repairs.

However, some key conditions apply:

• The pipe must not have been leaking slowly over time (gradual damage may be excluded)
• Damage caused by tenant negligence may not be covered unless you have extended liability coverage
• If the home was vacant and improperly winterized, the claim could be denied
  

If the pipe burst due to poor maintenance or a known issue the landlord failed to fix, the insurer may reduce the payout or deny the claim altogether.

How To File A Water Damage Claim For A Burst Pipe

To maximize your chance of a successful insurance claim:

1. Stop the water flow immediately and document everything with photos and video
2. Call your insurance company to report the damage promptly (most require this within days)
3. Hire a licensed mitigation/restoration company to begin drying and cleanup
4. Save all receipts and invoices
5. Cooperate fully with the adjuster’s inspection and any requested documentation
   

In some cases, you may also need to provide proof of ongoing maintenance (especially in older homes). Be sure to track service records for plumbing inspections or tenant-reported leaks.

Preventing Burst Pipe Damage In Rentals

An ounce of prevention is worth thousands in repair costs. To help prevent burst pipe claims:

• Winterize vacant properties—shut off water, drain pipes, or keep heat on
• Insulate pipes in unheated areas like basements, attics, or crawl spaces
• Install leak detectors and smart water shutoff valves
• Educate tenants to report plumbing issues immediately
• Replace old or corroded piping during renovations
  

You can also consider adding equipment breakdown coverage to your landlord policy to protect major systems like plumbing and HVAC beyond basic dwelling coverage.

Final Thoughts

Burst pipe damage is one of the most common—and expensive—issues landlords deal with. Fortunately, if you’re properly insured, your policy may cover the water damage, repairs, and even lost rent. If your rental property includes features like a pool or hot tub, even minor leaks can evolve into major problems if not caught early.

Want to make sure you’re covered for water damage, from burst pipes to roof leaks? Get a quote from Steadily and protect your rental before the unexpected happens.