Water Damage vs Flood Damage and What Texas Homeowners Insurance Usually Covers

To an insurer, a pipe that bursts in your wall and a creek that comes into your garage are different events with different policies, and the difference is the most common source of surprise in homeowners claims. This post lays out what the Texas Department of Insurance and FEMA say, so you know which kind of loss you have before you read your own policy.

Two kinds of water, two kinds of coverage

Insurance sorts water by where it came from and how it arrived. Water that is released inside your home from a failure, such as a broken pipe or appliance hose, is generally a homeowners policy matter. Water that comes in from outside as flood or rising surface water is generally a flood policy matter. A slow leak is a third thing, and TDI puts it on the side of things most policies do not cover.

What is usually covered

“Sudden and accidental”

TDI’s FAQ says most homeowners and renters policies cover sudden and accidental water damage, with examples such as a burst pipe, toilet overflow or broken washer hose. It says policies usually will not cover damage from gradual leaks. The line between the two is where claims are argued. A pipe that splits and floods a room is sudden. A fitting that weeps for months behind a cabinet and rots the base is gradual, even though the end result looks the same.

Two practical consequences follow. A leak you find and fix quickly is easier to describe as sudden, which is another reason to run the checks in the hidden leak guide. And the photographs and timeline in the documentation checklist are how you show what happened and when.

Flood is a separate policy

FEMA’s flood insurance page says most homeowners insurance does not cover flood damage, that flood insurance is a separate policy that can cover buildings, contents, or both, and that there is typically a 30-day waiting period for an NFIP policy to go into effect. TDI says the same about the waiting period for most flood policies. The consequence is that you cannot buy flood insurance when a storm is in the forecast and expect it to respond.

TDI also notes how often flooding happens away from the maps: more than half of homes flooded by Hurricane Harvey were outside of designated flood zones. A mapped zone is a regulatory category, not a prediction.

Flood zones and who needs flood insurance

FEMA’s glossary defines the Special Flood Hazard Area as the area that will be inundated by a flood event having a 1 percent chance of being equaled or exceeded in any given year. Zone X, shaded, marks moderate flood hazard areas between the limits of that flood and the 0.2 percent annual chance flood. Unshaded Zone X marks minimal hazard. FEMA says homes and businesses in high-risk flood areas with mortgages from government-backed lenders are required to have flood insurance. Outside those areas it is optional.

You can look up an address on FEMA’s Flood Map Service Center, and your city’s floodplain staff can explain what the result means locally. Whether water has entered a particular building is a separate matter. Roofs, grading, drains and plumbing all move water into buildings in ordinary neighborhoods. See the DFW rainfall post.

Renters, condo owners and landlords

The same event hits each of these differently.

• Renters. TDI says most homeowners and renters policies cover sudden and accidental water damage. For a tenant that usually means your belongings. The building and its fixtures are the landlord’s responsibility.
• Condo owners. The association usually insures the building structure and common areas, and you insure the interior and contents. Which walls, fixtures and finishes fall on which side is in the association documents, so read them before a loss.
• Landlords. A landlord needs its own coverage for the building. A tenant’s renters policy does not insure it.
• Leaks that damage a neighbor. Ask whether your policy includes liability coverage for water that leaves your unit.

This is general orientation, not legal or insurance advice. For a particular unit, ask the association’s manager and your insurer.

Add-ons worth asking about

TDI’s guide lists optional coverages that bear on water damage: backup of sewers or drains, damage to foundations or slabs and mold removal. It also describes additional living expense coverage, which can pay for housing while a home is unlivable, and says it might be limited to 10 to 20 percent of the dwelling coverage. If you own a house with a sewer line that serves a lower level, a garage or a bath below the street, ask about the sewer backup endorsement.

• Does my policy cover sewer or drain backup, and what is the limit?
• Is there a separate deductible for water damage or for wind and hail?
• What conditions apply to frozen pipes, such as keeping the house heated?
• Does it cover mold, and if so, up to what amount?
• What does the additional living expense limit allow?

Five terms that decide a water claim

1. Sudden and accidental. TDI’s examples are a burst pipe, toilet overflow and broken washer hose. It is the category most policies cover.
2. Continuous or gradual leak. TDI says policies usually will not cover damage from gradual leaks. Wear and tear is also listed as not covered.
3. Flood. Rising or surface water. Most home policies do not cover it; a separate flood policy does, with a waiting period.
4. Backup of sewers or drains. TDI lists it as optional coverage. Without the endorsement, the answer depends on the policy.
5. Deductible. The amount you pay first. TDI says to save proof that you paid it, and that a Texas law makes it illegal for contractors or roofers to offer to waive a deductible.

TDI says most homeowners and renters policies cover sudden and accidental water damage. For renters that usually means your belongings. The building itself is the landlord’s coverage, so notify the landlord at once.

What to do after a loss

Call your insurer early, photograph everything, make only temporary repairs and keep receipts. TDI says to file a claim as soon as you can and that your company has 15 business days to say it got your claim. The details are in the documentation post. The first-hour steps are in what to do after a pipe bursts, and the cleanup for outside water is on the flood damage cleanup page.

Read about flood damage cleanup →

This article is general information from the Dallas Flood Guard editorial team. It is not medical, legal, engineering or insurance advice. Sources are linked above. See the editorial policy for how posts are researched and corrected.