Does Home Insurance Cover the Cost of a Hot Water Heater Replacement?

If you own a home and it suffers damage, you may assume your home insurance will step in and help cover those losses. In some cases, it will. In others, though, it will not.  

Perhaps your hot water heater bursts. It happened out of nowhere and flooded your basement. You have damage to your home’s drywall, carpeting, and furniture. Is your home insurance going to help you to recover from these types of losses? In some cases, it may. However, the amount of coverage will differ from policy to policy. 

What Caused the Problem? 

Most home insurance policies do not cover most forms of flooding. However, burst pipes and water heater leaks may have coverage. 

Water damage is often covered if and only if the cause was accidental and unpredictable. If it occurred because the system was very old and in poor repair, the insurance company may elect not to cover you. Home insurance does not cover maintenance costs, in other words. 

What Will Have Coverage? 

Perhaps the water heater began leaking as a result of an accident or an unpredictable event. You could not have prevented it. In this case, the insurance company is likely to provide you with financial help. It will likely cover the losses you experienced. This may include: 
Cleanup and removal of the water itself

However, it will not likely pay for the repair to the water heater itself. It may not cover the cost to replace the water heater. Homeowner generally will need to cover out of his or her pocket because they are what insurance calls expected costs. 

Every home insurance policy is different. Speak to your insurance agent about your plan. Some may include a specific exclusion to water damage from water heaters or burst pipes. And, you will need to learn when your policy is applicable. 

Taking any steps possible to reduce the risk that you will face from these types of risks is also important. Keeping your water heater in good working order is always the best first step. 

Get in touch with Hembree Insurance Agency today at (770) 977-1818. We can help you get the correct home insurance for your needs.