An average hot water heater has a 10-year lifespan, which doesn’t sound like much in the long run. If your hot water heater bursts, you may be wondering how much repairs will cost. If the right conditions are met, you may even file a claim with your homeowner’s insurance and find that your policy may or may not cover the problem.
It’s good to be ready, so let’s go over when your home insurance will cover your hot water heater, including any damage from leaks or water.
Hey folks! If your water heater unexpectedly breaks down, it can really disrupt your home life Having hot water is essential for bathing, washing dishes, doing laundry and more That’s why it’s important to understand how your homeowners insurance policy covers water heater damage.
In this article, I’ll explain exactly how water heaters are covered, what damage is included/excluded, how claim limits work, and tips for repairing or replacing your unit My goal is to make this topic simple to understand, so you know what to expect if you ever need to file a water heater claim
How Homeowners Insurance Covers Water Heaters
The good news is that standard homeowners insurance provides coverage if your water heater is damaged due to a covered peril like:
- Fire or explosion
- Lightning
- Windstorm
- Hail
- Smoke
- Vandalism
- Theft
So if your water heater leaks, bursts, cracks or malfunctions due to a sudden event like these, you can file a claim to repair or replace it.
There are a few parts of your policy that would apply:
Dwelling Coverage: This covers damage to the physical structure of your home. If the water heater is in your house, dwelling coverage applies.
Other Structures Coverage: If your water heater is in a detached garage, shed etc., this part of your policy covers it. The limit is usually 10-50% of dwelling coverage.
Personal Property Coverage: If the broken water heater damages your belongings like furniture, this pays for those losses. Limits are typically 50-75% of dwelling coverage.
Loss of Use: Pays for hotel, restaurant meals and laundry if you must temporarily move out during water heater repairs.
Liability Coverage: If the broken unit causes injury to others or damage to their property, this covers your legal responsibility.
Claim Limits and Your Deductible
If you file a water heater claim, your homeowners insurance will pay up to your coverage limits, minus your deductible. Here’s how it works:
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The insurer determines repair/replacement cost.
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Your deductible is subtracted (for example, $500 or $1000).
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The policy pays the remaining amount, up to your coverage limit.
So if the water heater replacement cost is $1000, and your deductible is $500, you would pay $500 out of pocket and the insurance would cover the remaining $500.
Make sure you know your policy limits and deductible amounts before filing a claim. This determines how much you’ll be reimbursed.
What Damage Isn’t Covered?
While homeowners insurance provides excellent protection for water heaters, there are a few scenarios that won’t be covered:
✗Normal wear and tear: Gradually wearing out from regular use over time.
✗ Lack of maintenance: Failing because you didn’t maintain or service it.
✗Mechanical/electrical breakdown: Malfunctioning due to an internal defect.
✗Pre-existing damage: Issues you knew about but failed to fix.
✗Rust, sediment buildup or corrosion: Gradual damage from everyday use.
✗Intentional damage: Damage you or a family member causes purposely.
So those types of common water heater problems won’t be eligible for a homeowners insurance claim.
Additional Options for Coverage
To get coverage for water heater damage that would otherwise be excluded, you can add these endorsements to your policy:
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Equipment Breakdown: Covers electrical/mechanical failure.
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Water Backup: Protects against water overflowing from pipes or drains.
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Home Systems Protection: Covers breakdown of systems like plumbing.
Though it costs extra, this additional coverage gives you total peace of mind.
Filing a Claim for Water Heater Damage
If you need to file a claim, here are some tips:
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Take photos of the damage right away.
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Call your insurance company to start the claims process.
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Make immediate repairs to stop further damage. Keep receipts for reimbursement.
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Get multiple repair estimates if the damage is extensive.
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Provide proof of damage when asked, like repair invoices.
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Be patient as the claims adjuster investigates. The process can take weeks or months.
Following these steps helps ensure you get the claim paid smoothly and promptly.
Replacing a Faulty Water Heater
If your water heater is faulty or failing due to age, it may need to be replaced before it causes damage. Here are some tips:
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Check the tank warranty to see if a free replacement is covered.
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Research the lifespan of your unit – usually 6-12 years for tank heaters.
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Inspect your water heater yearly for leaks and corrosion.
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Listen for rumbling or popping sounds that indicate problems.
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If needed, have a technician assess whether it should be repaired or replaced.
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For a replacement, buy a unit with a 6-10 year warranty.
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Consider upgrading to a tankless water heater for greater efficiency and longevity.
Replacing a water heater before it fails helps avoid serious leaks or flooding.
The Bottom Line
To wrap it up:
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Homeowners insurance covers water heater damage from covered causes like fire or storms.
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The policy pays repair costs up to your coverage limits minus the deductible.
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Maintenance issues and wear/tear aren’t covered – consider extra coverage.
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Document damage right away and file a thorough, detailed claim.
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Proactively replace an aging unit before it fails and causes bigger issues.
Frequently Asked Questions
What type of water heater damage is covered by homeowners insurance?
Homeowners insurance covers sudden water heater damage caused by a covered peril like fire, lightning, theft, frozen pipes, hail, falling objects and more. If the damage results from an abrupt incident like this, you can file a claim to repair or replace your water heater.
Does homeowners insurance cover gradual water heater damage?
Unfortunately, gradual damage to your water heater over time isn’t covered by a homeowners policy. Issues like wear and tear, rust, corrosion, mineral buildup and sediment are specifically excluded. To get coverage for gradual damage, you’d need to add endorsements like Equipment Breakdown coverage.
What if my water heater leaks and damages my home?
If your faulty water heater leaks and causes damage to your floors, walls, furniture, etc., this resulting damage can be covered under your homeowners policy, even if the water heater itself is not. The Dwelling and Personal Property sections of the policy would reimburse you for water damage to your home and belongings.
Is an old water heater covered by homeowners insurance?
Age alone does not exclude coverage. Even if your water heater is old, any sudden damage from a covered cause of loss would be covered. However, an insurer may more closely scrutinize a claim on an older unit to ensure it didn’t fail due to lack of maintenance or simply wearing out over time, which they won’t cover.
What is Equipment Breakdown coverage for water heaters?
Equipment Breakdown coverage is an optional endorsement that covers mechanical or electrical failure of appliances and systems, including water heaters. It fills the gap for damage excluded by standard homeowners policies, like if your water heater stops functioning due to an internal defect. This provides more complete protection.
How much does it cost to replace a water heater not covered by insurance?
The cost to replace a faulty or broken water heater that isn’t covered by homeowners insurance typically ranges from $500 to $1500, depending on the type, size, features and labor involved. This is for a fairly standard replacement unit. Upgrading to tankless or a high-efficiency model would cost more.
Should I replace my water heater before it fails?
It’s generally recommended to proactively replace a water heater once it reaches the end of its typical lifespan, which is 6-12 years. Older units are more prone to leaks and sudden breakdowns. Replacing it early on your own terms avoids much bigger headaches and costs if it fails unexpectedly.
How much of a water heater replacement will insurance cover?
If your water heater is covered by homeowners insurance, the policy will pay the full reasonable cost for a standard replacement, up to your policy limits, minus your deductible. Any premium upgrades would be paid out-of-pocket. If the unit isn’t covered, you’ll pay the full replacement cost yourself unless the manufacturer’s warranty applies.
What maintenance can extend the life of my water heater?
To maximize the lifespan of your water heater, flush sediment from the tank annually, replace anode rods as needed, keep the area around the unit clean an
Does Homeowners Insurance Cover Water Heater Damage?
If your water heater explodes or leaks, your homeowners insurance may cover the damage. This is as long as your insurance company thinks the event was caused by a covered peril.
Your homeowner’s insurance may not cover the claim at all if your water heater was old or clearly in need of repair. This includes any water damage to your home that happened because of the leak. It’s important to know how old and in good shape your water heater and other appliances are so that you don’t end up with water damage that costs a lot of money and causes problems.
Does Homeowners Insurance Cover a Water Heater?
Yes and no. If your hot water heater bursts a pipe or the tank leaks, you can file a claim with your homeowners insurance as long as the damage was unexpected or caused by a covered peril. This means that it wasn’t due to old hardware breaking down or appliances not being properly maintained.
If the adjuster decides that your water heater was old and should have been replaced a long time ago, your homeowners insurance company may not pay for the damage caused by the leak or burst. Additionally, if the water heater has been leaking for a long time and you haven’t noticed it, your homeowners insurance company may not pay for the damages.
When your water heater bursts, the repairs can get very expensive very quickly if you don’t notice the leak for days or even weeks. You may be partly to blame for the damage. In this case, your insurance company may offer to pay some of the claim or decide not to pay it at all.