Does renters insurance cover water damage?

The Federal Emergency Management Agency has determined, "Even just one inch of water can cause $25,000 of damage to your home" (2024). But what does that mean for renters? While landlord insurance typically covers building damages, you may be responsible for more than you realize as a renter. Learn more about how renters insurance protects you from water damage and which additional coverages help deliver more protection.

When does renters insurance cover water damage?

Renters insurance helps pay for covered water damage, outlined in your policy, up to your policy limits when it’s sudden and accidental. Losses resulting from wear and tear or events excluded from your policy are not covered.

You may also be able to buy additional coverages to insure events not listed in your policy.

About renters insurance and water damage

The most common 2022 home insurance claims by event included “wind and hail” damage at “40.7%,” “water damage and freezing” at “27.6%,” and “fire and lightning” damage at “21.9%” (Insurance Information Institute).

All of 2022's top three claim-related perils could cause water damage to your home and belongings, whether you rent a single-family home, townhome, or apartment.

Your landlord's insurance usually covers the building and its systems. Renters insurance typically protects your belongings, personal liability exposures, and additional living expenses.

For example, renters insurance helps pay for damage to your valuables up to your policy's limits. It usually includes liability coverage, which helps protect you if a visitor slips on water pooling from a leak, resulting in costly medical damages. It can also help pay for your temporary housing if your home is deemed uninhabitable due to your water damage.

Learn more from the following renters coverage questions.

Does renters insurance cover water damage caused by storms?

Renters insurance typically helps cover the following storm-related events:

• Hail, lightning, and tornado
• The weight of ice and snow
• Power surges to electronics and appliances

While renters insurance may cover your storm-related water damages, you may need to contact your American Family Insurance agent to adjust your coverage limits for greater peace of mind.

Does renters insurance cover water damage from faulty home systems?

Your renters insurance policy may help pay for damages resulting from the following malfunctioning home systems:

• Burst pipe
• Plumbing, heating, or cooling systems

Does renters insurance cover water damage caused by fire damage?

Your renters insurance policy may help pay for water damage resulting from the following events:

• Fire
• Wildfire

Does renters insurance cover water damage from other sources?

Your renters insurance may help cover water damage resulting from the following events up to your policy's limit.

• Theft
• Vandalism
• Your water leak affecting your neighbor’s home

When doesn’t renters insurance cover water damage?

Renters insurance doesn't usually cover water damages from events not listed on or excluded from your rental policy. However, if eligible, you may be able to buy additional insurance covering those losses.

Additional water damage coverages for renters

If eligible, you may be able to buy the following coverages for additional water damage protection.

• Electrical Appliance coverage: Appliances, home systems, or smart home devices experience damage from an unexpected mechanical or electrical breakdown.**
• Flash flood protection: Helps cover water leak damage due to inland flooding.***
• Sump pump failure and water backup coverage: Helps mitigate repair costs caused by water coming back into a home due to a backed-up drain or an overflowing sump.

Does renters insurance cover water damage related to events not listed in our available coverages? Connect with your American Family Insurance agent to find out.

Get water damage protection with renters insurance

Renters insurance with limits and coverages protecting you from unexpected losses delivers peace of mind when you need it most.

Take it from one of our American Family Insurance agents "When a pipe burst in the customer’s apartment, water damaged some of their furniture. New furniture definitely isn’t cheap — good thing they had renters insurance!"

Contact your American Family Insurance agent for renters insurance, a policy review or additional coverages and discounts. Life’s better when you’re under our roof. 

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

*Customers who bundle their auto and renters insurance may save up to 7% on both policies together (as of December 2024)

**Coverage provided by adding the Equipment Breakdown optional endorsement. Coverage provides protection should appliances, home systems, or smart home devices be damaged due to unexpected mechanical or electrical breakdown. Does not provide coverage for breakdown caused by normal wear and tear. Coverage applies once a $500 deductible has been met.

***Coverage provided by adding the Inland Flood optional endorsement. This endorsement does not satisfy mandatory flood insurance coverage should it be required by your federally regulated lender for your home mortgage or loan. This insurance product is not affiliated with the National Flood Insurance Program (NFIP). Please check with your agent and read the policy and endorsements for exact details on coverage limits and exclusions. Coverage applies after the property deductible has been met.

References:

Flood Insurance Protects You All Year Long. (February 23, 2024). Federal Emergency Management Agency. https://www.fema.gov/fact-sheet/flood-insurance-protects-you-all-year-long.

Average Homeowners Losses By Cause, 2018-2022. (n.d.). Insurance Information Institute. https://www. iii.org/table-archive/20385