Are Water Heaters Covered Under Home Insurance | Core Reasons

As a resident, you know that anything may go awry at any time. Your water heater might malfunction, your pipes could break, and your power could short circuit. Owning a house comes with the worry that something will go wrong. What transpires, though, when the water heater ultimately breaks down? Are water heaters covered under home insurance? We will highlight this below.

Many people wrongly think that their home insurance covers damage to water heaters. But this is not the situation. Make sure to do your homework and get supplemental insurance to ensure that you fully comprehend what your insurance covers. Very few circumstances exist where damaged plumbing networks may be fixed or replaced.

Damages to the actual house often get covered by insurance coverage. Since a water heater leak would have damaged any necessary repairs, the homeowner must cover those costs.

 The financial challenge you could be experiencing is paying for water heater servicing. Depending on your specific coverage, your home’s insurance may cover the plumbing price. Some people may not. Check your insurance to determine whether you are protected to understand your position the best.

Are Water Heaters Covered Under Home Insurance?

Are Water Heaters Covered Under Home Insurance

Along with the highlighted above, we will go through when and how water heaters get covered by homes insurance. It’s crucial to check your home’s insurance plan first to make sure hot water boilers are even covered. And the likelihood that it does is high. But let’s suppose for the time being that we’re looking at the insurance that surrounds them. Most homeowner insurance covers water heaters in a few typical ways.

Water heaters often get covered by homeowners’ insurance in the following ways:

  • Water destruction: Faulty water heaters release massive amounts of water, potentially causing a wide range of harm. Over time, connections may become weak, valves could burst, and the device could start to erode. Homeowners’ policy pays the water leaks component regardless of what caused the appliance to malfunction.
  • Cleaning up soggy and maybe mildewed furniture and flooring is another issue that might arise when a broken water heater casts behind its wet tracks. Although coverage will compensate for cleaning your carpet and furnishings, it won’t fully replace your carpet. Because carpet loses value over time, coverage will only pay for what the rug is now worth.
  • Wood flooring:  Water from a faulty water heater may cause severe damage to wooden floors. Your home insurance will provide coverage if it has to be taken down and rebuilt.
  • Contact your independent insurer so they may go through your own homeowners’ coverage with you. They can explain the kind of protection you have for your water heater.

When will a damaged or broken water heater not be covered by my homeowners’ insurance?

Your insurance company will not pay for the repair or replacement if your water heater suddenly stops operating due to aging, carelessness, or damage from normal wear and tear.

Even though they are inevitable and unplanned, flood insurance and earthquake insurance often get overlooked in property insurance coverage. Therefore, it gets advised that you get supplemental coverage for tremor and flood damages if you reside in a flood-prone location.

Homeowners insurance expressly excludes certain occurrences from coverage, even if it protects your house and personal belongings if it is affected by a covered danger. Floods and landslides get included in this. The cost of fixes will be your responsibility if an eruption destroys your house and floods.

You may get separate plans for earthquakes and floods if you reside in a prone region. Some lenders demand that borrowers get flood insurance. Even if they live in an area with a significant danger of flooding damage, the federal government gives residents the right to obtain extra flood coverage.

However, since some plans demand huge deductibles, often $10,000 or more, you must be ready to spend extra cash if an earthquake occurs. If your house is vulnerable to earthquakes, it is wise to have earthquake insurance and money put aside to meet out-of-pocket expenses.

What would happen if a water heater leaked?

Are Water Heaters Covered Under Home Insurance

A leaking water heater often necessitates calling a maintenance specialist, who then issues a charge to remedy the issue or replace the equipment. The mechanical fault with the water heater qualifies as a maintenance issue. Thus, you are responsible for fixing it.

However, if the leak causes a burst of water that damages your house, your homeowner’s insurance may pay to repair the damage. Appliance upkeep is not covered, but water leak damage is. As a result, your home’s insurance may cover damages caused by a broken pipe from your hot water system that destroys personal goods or a portion of your house.

When terrible catastrophes affect your home, homeowner’s insurance is a great help. Water heater mechanical problems are not covered under this policy. But when a covered risk damages or destroys an appliance, your insurance compensates for a new one. This still holds if it leaks and causes damage to your home.

How to Guard Against Water Heater Damage

First, turn off your water heater as soon as you discover leaks! You may cut the main stopcock in your basements or the water valve next to the device. Before a situation arises, it’s critical to know where to look for these valves.

The following section outlines a few steps you can take right now to prevent unforeseen water heater costs in the future. They consist of:

1. Contact your house insurer to find out what your contract states.

Some insurance plans may not pay for a new water heater if one breaks down and causes flood damage to your house. Others limit their coverage to products installed or produced within the last ten years. Knowing the status of your coverage is crucial.

2. Verify the water heater’s age.

A license plate that lists the manufacturing year gets included with water heaters. Check with your supplier if you have leased a water heater.

3. Hire a specialist to maintain your water heater.

If your unit is reaching its tenth year, this is exceptionally crucial. Before you end up with a moist basement, you should consider replacing it if it’s not in fantastic condition.

There are numerous more steps you may take to reduce the likelihood of water leaks when it’s time to upgrade your water heater, including:

  • Add a leak detector that closes the hydration valve whenever it discovers a leak.
  • Place a water heater recuperation plate underneath the new tank to stop any potential leaks.
  • Have the other appliances in your basement raised off the ground to protect them from being harmed by light flooding.
  • Leaving the house for a long time, particularly during the winter, depletes the water heater storage facility. If the tubes freeze, this will stop them from exploding.
  • Invest in waterproofing your basement.

Frequently Asked Questions

How much do I have to spend if my water heater does not get covered by property insurance?

Be sure to cover any extra costs associated with your home’s insurance policy, whether related to the structure of your house or private possessions, such as furniture.

Working with an experienced individual insurance broker may help you get a plan with a reduced deductible or expand your deductibles if you’re worried that you don’t have proper insurance.

What will handle my hot water system if property insurance never seems to?

If a home equipment guarantee covers your water heater, the expense of replacing it if it malfunctions will often get covered. These warranties may also cover the destruction of the water heater. Typical homeowners’ plans do not cover general appliance depreciation since maintenance is the homeowner’s responsibility.

Your most excellent chance of avoiding a disaster is to keep up with the regular maintenance of your water heater. Be sure to familiarize yourself with your homeowner’s insurance policy’s limitations for the house and personal property divisions and the policy limit. Contact your independent insurer if you wish to expand your plan.

Should water heaters be coated?

Yes. Shielding your electric water heater is a simple and affordable approach to increase energy efficiency and reduce monthly energy costs, much like protecting your walls or ceiling. Check whether the padding in any older water heaters has an R-value of at minimum 24. Shake the tank to determine the R-value if you’re unsure.

How can I verify the guarantee on my water heater?

By looking at the first 2 to 3 digits of the product code, you may quickly determine the guarantee. The heater is usually installed in a single-family house for one year. When installed in another structure, the duration is shortened to one year.

Can a water heater be outside the apartment?

Tank-style water warmers powered by electricity or gas are not intended for installation outdoors without cover. Gas heaters, on either hand, have outdoor types that get installed. Electric water warmers may also get installed outdoors. However, covering the heater from the elements is advised.


In conclusion, water heaters stand as an excellent addition to the home. And if you desire to know if water heaters get covered under home insurance, the tips above will aid you immensely.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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