Are you covered for water damage?
Water damage is one of the most common and costly issues landlords face. Proper insurance protection ensures your investment remains secure when unexpected water events occur.
How much landlord insurance coverage do I need for water damage?
There is no one-size-fits-all formula when it comes to choosing your water damage coverage limits. Your dwelling coverage should reflect the full cost to repair and restore your property after a covered water loss. You can set your coverage limits based on factors such as the age of your plumbing systems, local flood risks, and several key considerations when choosing landlord water damage protection.
When determining how much personal property coverage you need for water damage, create an inventory of items you own that could be affected by water at the rental property. Consider the replacement cost of HVAC equipment, water heaters, appliances you provide, and any furnishings in basements or common areas that are vulnerable to water damage. Most standard policies cover personal property at about 10% of your dwelling coverage.
Your dwelling coverage limit should account for potential water restoration costs—including structural drying, mold remediation, and rebuilding damaged areas. Consider the age of your plumbing and roof, proximity to water sources, basement or ground-floor risks, and any recent upgrades when calculating this amount. Working with a water damage restoration specialist or insurance agent can help determine an accurate coverage estimate for your specific property risks.
It's important to understand the water coverage in your landlord policy.
When it comes to fire damage, Landlords insurance typically helps pay for repairs to your home, unattached structures on your property and your belongings. Learn more about what is and is not covered, below.
Types of water damage covered
- Structural water damage coverage
- Personal property water protection
- Loss of rental income after water damage
- Additional living expenses coverage
Water damage that landlord insurance may not cover
While landlord insurance provides substantial protection against water damage, be aware of these common exclusions:
- Flood damage from natural disasters or rising water sources. Flood is purchased as a separate policy, in addition to your landlord insurance policy.
- Water damage from lack of maintenance or gradual leaks
- Vacant properties (typically defined as unoccupied for more than 30-60 days)
- Water damage resulting from tenant negligence that may have complicated claims processes
Be sure to consult with you licensed insurance agent to clarify what water damages are and are not covered by your landlord insurance policy.
Common water damage scenarios
Plumbing fixture overflow
HVAC system water damage
Roof leak from storm damage
Appliance malfunction overflow
Burst pipe flooding
Frequently Asked Questions
Will my landlord insurance cover the cost of finding and fixing the source of water damage?
Coverage varies by policy, but most landlord insurance covers the cost of accessing and repairing the immediate source of sudden water damage (like a burst pipe behind a wall), though it may not cover extensive exploratory work or repairs related to gradual deterioration or poor maintenance.
How long do I have to report water damage to my insurance company?
You should report water damage immediately or as soon as reasonably possible after discovery. Most policies require prompt notification, and delaying could complicate your claim or potentially lead to denial of coverage.
Does landlord insurance pay for temporary housing if water damage makes my rental uninhabitable?
Yes, most landlord policies include loss of rental income coverage that compensates you for lost rent while the property is being repaired, and some policies also cover additional living expenses if you need to provide temporary housing for displaced tenants.
Will my landlord insurance cover water damage caused by my tenants?
Coverage depends on the cause and your policy terms. Accidental tenant-caused water damage (like an overflowing bathtub) is usually covered, but intentional damage or damage from tenant negligence may be excluded or require additional investigation during the claims process.
Does landlord insurance cover all types of water damage?
No, landlord insurance typically covers sudden and accidental water damage like burst pipes, appliance malfunctions, and storm-related roof leaks, but excludes flood damage from natural disasters, gradual leaks from poor maintenance, and damage to vacant properties.
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