Are underground water leaks covered by insurance?

Author: Mr. Kian Pouros  |  Last update: Friday, February 27, 2026

Like flooding, groundwater seepage isn't covered by a standard homeowners policy.

Do insurance companies cover ground water damage?

Groundwater is naturally occurring water underground whose levels may increase after heavy rains or snow melts, which can be destructive to basements. However, your homeowners insurance policy won't cover damage from groundwater.

Can I claim compensation for a water leak?

As a general rule, water damage is covered by home insurance if it is sudden or accidental.

How do I make a successful water leak insurance claim?

7 Tips when Filing a Home Insurance Claim for Water Damage
  1. Step 1: Determine the Source of the Water. ...
  2. Step 3: Call your Insurance Agent. ...
  3. Step 4: Get the water and moisture professionally removed. ...
  4. Step 5: Determine if you can remain in your home. ...
  5. Step 6: Take photos of the damaged area. ...
  6. Step 7: Contact an Adjuster or Lawyer.

Can you claim a water leak on your homeowners insurance?

Source of damage

If the source of the damage comes from inside your home, such as a water leak from plumbing , a broken pipe or overflowing appliance, you'll likely be covered by your homeowners insurance.

Leaky vs Broken Pipes | Does Home Insurance Cover Me?

Can I claim compensation for a leak?

If you have not been able to use your property properly, or you have suffered an illness due to the water damage, you will be able to make a claim against your landlord if he or she has not acted in a reasonable time. Here at Legal Expert, we can help you to secure compensation if such a scenario happens to you.

How much does it cost to replace pinhole leak?

Pinhole leak repair can cost an average of $150 to $800, depending on the leak's location and the complexity of the fix.

Will insurance pay to replace the entire floor?

Dwelling coverage, on your condo or homeowners policy, may pay to repair or replace your floors and carpet if they're damaged by a covered peril. For instance, if your home's floors are damaged in a fire, your home insurance may pay for new flooring, up to your policy's limits and minus your deductible.

Does homeowners insurance cover broken pipes under foundation?

If your slab cracks due to a covered hazard, like a pipe burst, homeowners insurance will likely cover the cost of tearing out and pouring new slab, but pipe repairs will likely not be covered. Slab and plumbing issues resulting from age or normal wear and tear are not covered by home insurance.

Can I get a refund if I have a water leak?

Many utilities offer refunds

To recover one-time water losses, contact the agency's customer service department or fill out a form on the agency's website. Proof of repair must be submitted (a plumber's bill or receipts for parts purchased by the homeowner) or some municipalities use meter readings.

Will my homeowners insurance go up if I file a water damage claim?

So, does homeowners insurance go up after a claim? Absolutely, but now you know why and how. You've learned that the type of claim matters—water damage or theft could hike your rates more than others. You understand filing multiple claims might not only raise costs but also risk policy renewal.

Why would a water damage claim be denied?

Reasons for denial can range from the nature of the damage itself—such as gradual damage that occurred over time—to issues with how the claim was filed, including missed deadlines or insufficient documentation. Furthermore, unreported property modifications can also lead to complications during the claims process.

What is groundwater seepage?

Groundwater seepage occurs when there is an excessive amount of water in the ground adjacent to a foundation wall or the basement floor. The pressure of the groundwater can build to a point that it may begin to “seep” through small cracks in the foundation or floor.

Can I keep my homeowners insurance claim check and make the repairs myself?

Can I keep my homeowners insurance claim check and make the repairs myself? Your ability to complete your repairs on your own will depend on your policy and the nature of the repairs. Many insurance companies will allow you to complete simple repairs yourself, though they may require supervision.

What does homeowners insurance cover and not cover?

Damage or destruction due to vandalism, fire, and certain natural disasters are all usually covered. So is your liability if someone is injured on your property. Certain catastrophes, like flooding or earthquakes, are generally not covered by basic homeowners policies and require specialized insurance.

Does insurance cover ground water damage?

Basically, any water that flows into your home from the ground isn't covered. So rainwater, a surging river and saturated ground aren't covered. Homeowners can purchase separate flood insurance through FEMA's National Flood Insurance Program (NFIP), your agent can help with this process.

Will insurance pay for everything?

Health insurance doesn't pay for everything. It usually pays most of the bill, but you will still have to pay some. This is called cost-sharing. The amount that you pay depends on the kind of plan you have.

What does a pinhole leak look like?

Pinhole leaks in copper pipes are exactly what they sound like – very small holes in a pipe through which water slowly drips. They're usually less that 1/8” wide. Scientists estimate that there are about 750,000 pinhole leaks in the U.S. each year, and they're more common in Texas, Florida, and California.

Who pays for water line repair?

If these are damaged or break, the homeowner might be responsible for the repair. A standard homeowners policy does not cover the service lines running into the home—unless you've added service line coverage.

Is a water leak under the house covered by insurance?

Under most standard home insurance policies, if water damage occurs suddenly or accidentally from a source inside your home, such as a busted pipe, it will likely be covered by your homeowners insurance. If the water comes from outside your home, it will not be covered by your standard policy.

How much compensation should I ask for?

Work out how much compensation you want

You'll need to work out a fair amount of compensation to ask for. You should consider: how much money you've spent fixing the problems, or how much it will cost to fix.

Can my neighbor sue me for water damage?

For example, in California, the California Supreme Court modified the rule when it held that the reasonableness of conduct should be determined under the law of negligence. Per the law of negligence, every person has a duty to use reasonable care to avoid injury to another, including adjacent property owners.

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