Does Renters Insurance Cover Water Damage?

Natural disasters like hurricanes can wreak havoc on your property.

If you have water damage due to flooding from heavy rain and wind that ruins your personal effects, your standard policy will not cover you.

Standard renters insurance typically does not cover water damage due to flooding from heavy rain or hurricanes. However, it often covers water damage from internal sources, such as broken pipes.

Flood damage is understood to be water that comes from outside your rental or underground source--as opposed to something inside your rental like a broken pipe--that damages or destroys your personal effects.

Generally, renters insurance covers water damage from inside your apartment rental building.

So, if you rent and want to be protected from water damage, which insurer should you sign up with?

We’ve made it a little easier for you. We tracked down the best renters insurance companies by category that offer some financial relief from flood damage.

In addition, we’ve given you everything you need to know about water damage to decide when to purchase a policy.

Liberty Mutual: Best for Discounts

Liberty Mutual is known for its extensive coverage after a disaster strikes.

If there’s fire, earthquake, or flood damage in your home or rental, Liberty will pay the cost to rebuild your home exactly as it was before a covered peril.

What sets Liberty apart is the discounts they offer that can bring down the cost of your insurance.

• Bundling more than one Liberty Mutual insurance policy, like renters and auto insurance.
• Not filing a claim with your previous insurance carrier for at least five years.
• Getting a quote from Liberty Mutual before your current policy expires.
• Enrolling in automatic payments linked to a bank account.
• Purchasing a policy online.
• Choosing to receive policy documents electronically.

Lemonade: Best For Water Back-Up Damage

Lemonade says that about 30% of policyholders’ claims are reimbursed instantly after submitting the claim online or via the app.

Other comparable companies take a few weeks to resolve a claim. The company only has an online and app presence. However, it’s easy to use, even if you are technologically challenged.

Lemonade provides the option to add water backup damage coverage for an additional premium, which protects against issues like sewage backup. However, it does not cover damage from natural flood events.

It also doesn’t cover earthquakes.

Read a full Lemonade home insurance review.

Allstate: Best Overall for Water Damage and Flood Options

Allstate is a leading insurer in the U.S., offering robust standard coverage for water damage in rental units or homes. While its renters insurance provides comprehensive protection for incidents like water damage from burst pipes or leaking water heaters, it’s important to note that flood damage is not included and requires a separate flood insurance policy.

Under Allstate’s standard coverage, repairs for issues such as soaked drywall from a burst water heater or leaking pipes will be covered.

In addition, if a pipe bursts and the water drains on your smart TV, Allstate will either replace the TV or repair it.

And if the plumbing leaks, such as when your washing machine supply hose breaks apart, the standard renter's insurance will cover any damages.

But you will not be covered if water backs into your home through an outside sewer or drain.

Still, you can buy additional sewer or water backup coverage as an add-on to your policy.

Finally, you can purchase a separate flood insurance policy with your renter's insurance if storms, wet grounds, and overflowing water from rivers, ponds, lakes, and oceans cause flooding.

Read a full Allstate renters insurance review.

Chubb: Best for High Limits of Coverage

Chubb is a high-end insurance company that targets people of wealth.

For this reason, the insurer is the only company available with such high coverage limits.

That’s $15 million in total property coverage for rentals, homes, vehicles, and personal possessions.

You can also choose your limits. Personal liability starts at $1 million, but if you need more coverage, you can go up to $100 million.

Its flood insurance is comprehensive and stands out from what other insurers offer.

That’s because the many coverages you need to pay extra for with most other insurers are available without additional cost.

So that means no endorsements and add-ons.

For example, unlike many other renters insurance providers, Chubb's standard policy covers water damage due to a burst pipe or clogged sewer drain.

Also included are replacement costs and a cyber and identity theft policy.

Assurant: Best for Competitive Rates on Flood Insurance Policy

Assurant is one of the nation’s leading providers of flood insurance.

It offers the best protection against floods. That’s not hyperbole.

Assurant has thirty years of experience in floods and flood damage and offers the most competitive rates for a flood policy add-on.

Assurant is also considered the second-largest carrier offering flood insurance.

If your rental or home is damaged due to a flood and you have to move elsewhere, Assurant will pay for additional living expenses.

You can protect yourself if you purchase an add-on in the event you have damage from a backed-up drain or sewer.

FloodSimple: Best for Customer Service

Available in all 50 states, FloodSimple offers flood insurance exclusively for renter-occupied apartments, houses, condos, and townhouses.

For those who live in flood-prone areas or high-risk zones, FloodSimple is not the right insurance for you.

FloodSimple only offers coverage in low-risk zones, such as dwellings far away from bodies of water like oceans, rivers, and more, and areas not susceptible to hurricanes or other natural disasters.

In this way, FloodSimple can offer you coverage at an affordable rate.

FloodSimple doesn't even require an elevation certificate.

That's because the insurer assesses rental units or homes on a case-by-case basis using the experience of a seasoned underwriter and the technology of computer scoring.

FloodSimple also has the best customer service in the whole world. You can find information about your policy 24/7 using their easy-to-use website.

You can get a quote instantly and determine online with its lookup tool if your unit is in a flood zone.

FloodSimple has the highest rating of any insurer on the internet, and that's due to its excellent and responsive customer service, as well as its ability to email you a quote within 24 hours or less (it's often less).

How We Decided

We gathered information from multiple trusted sites in renters insurance and the websites of insurance companies. We narrowed our search down to the needs of residents looking for water damage coverage by prioritizing the following:

Coverage and Discounts

A reputable insurance provider should have a range of policy coverages for your needs.

So, we looked at renters insurance policies based on how much coverage they offered.

We looked at the primary or standard coverage options, unique features that other insurers don’t have, and add-ons or riders to make sure you are sufficiently covered for peril and to make sure you feel safe in your apartment.

We also looked at discounts each insurer offered, such as bundling and security options in your rental. We looked at those companies that offered the most discounts that could lower your policy rates. This allowed us to narrow down our search further. The more deals an insurer had were added to our list.

Technology

We only considered insurers with a website and app to make your life easier and save you time from having to be on hold over a long period via phone before you could talk to a live agent.

Only those with an easy-to-use and easy-to-navigate website and app were considered.

Plus, the website and app had to have features that made your life easier, such as signing up for a policy online, making a claim, paying your premium, and finding additional coverage you can buy as an add-on.

Customer Reviews

Customer reviews were used to narrow down the options. The studies also helped determine each category. Using customer reviews allowed us to see how customers chose a company based on affordable cost, accessibility, and overall coverage.

What Kind of Water Damage is Covered Under Renters Insurance?

Many who opt for renters insurance don’t know how much their insurer covers water damage.

Indeed, renters insurance doesn’t cover water damage, but you have to look at the particulars to see what kind of water damage your policy offers.

Water damage coverage depends on the source of the water and where it came from.

For example, renters insurance covers water damage in your rental due to accidental overflows or water discharge.

But your insurance typically won’t cover water damage from backed-up sewage or flood damage.

And your landlord is not responsible for water damage that ruins your belongings.

The landlord is only responsible for the exterior of the apartment.

But the good thing is that the landlord is responsible for replacing any pipes if your plumbing system suddenly goes AWOL.

The landlord is also responsible for preventing and repairing leaks.

Anything in your apartment damaged by water coming in from outside is paid for by you if you don’t purchase a flood endorsement from your insurance.

What is Flood Insurance?

Although standard renters' insurance policies cover some water damage to your personal property, renters' insurance does not cover flood damage to your belongings due to hazardous weather conditions like hurricanes.

Flood insurance usually is a separate policy designed to help protect your rental and belongings if they are damaged in flood. This stand-alone flood insurance policy can be added to your coverage as a rider or add-on.

It's essential to have this add-on if your unit or apartment is on the ground floor, below the ground, or on the first floor.

Does Renters Insurance Cover Ceiling Leaks?

Yes. If there is a leak from your ceiling and water drizzles from another unit in your building to destroy your property, you can claim with your policyholder.

For example, if the water leaked onto your expensive couch, laptop, or television and eviscerated these items, your policy will pay up to the insured limit.

Does Renters Insurance Cover Water Damage from a Toilet?

If there is accidental overflow or discharge from your toilet, renters insurance will replace your damaged personal belongings.

But if your toilet floods due to negligence, your insurance will not cover this.

For example, if your toilet is clogged and you didn't fix it, or if you didn't hire a plumber and the clog overflowed and caused damage, your insurance won't cover the costs to repair or replace the floor.

Neither will your landlord.

In fact, due to the overflow that could damage the unit below you, your landlord may sue you for repairing the damages.

Rest assured that your renter's insurance will cover any legal costs.

Still, renters insurance doesn't cover damage from water that backs up through sewers or drains.

And it won't cover damage caused by seepage from underground water.

So water backup is only covered if the blockage is not caused by flooding or a sump pump, as well as human error or negligence,

So, if a failed sump pump causes water to back up in your basement or water from a burst pipe damages your walls or floors, your insurance will not cover this.

Important to note here is that if water damage is excluded but causes another form of loss, such as by fire, you may be able to file a claim for damage to your property.

Accidental Discharge or Overflow of Steam

As suggested earlier, accidental overflow of water or steam is covered if you have plumbing, heating, or air conditioner problems.

And if a sprinkler system becomes damaged and drips water onto your laptop, you will be covered.

Some insurers also cover an overflow of water from an appliance, like your washing machine.

But if your washing machine overflows due to a malfunction, an insurer will not cover any damages.

An insurer will cover an air-conditioner leak or a busted hot water heating system.

If these appliances and HVACs tear, crack, burn, or bulge, your property will be covered if damaged.

Frozen Water

If water is discharged from your rental’s plumbing, HVAC system, or household appliance, and the water freezes and damages items you own, your renter's policy will reimburse you.

In addition, your insurance will cover you if you tried to maintain heat in your unit or tried reasonable measures to remove freeing water from your appliances.

Does Renters Insurance Cover Storm Damage?

Renters insurance protects your property from heavy rain and storms, but not in all instances.

Renters insurance covers damage to your property from incoming water if a window breaks during a storm due to heavy wind.

Wind damage is usually covered in a standard policy, regardless of who you are insured.

And if a storm destroys your rental unit or home, your insurance will cover the repair costs and loss of use because your dwelling is inhabitable.

On the other hand, if you are irresponsible and leave a window open during a storm and your furniture and other properties get damaged, your insurer will not cover any costs needed to replace them.

What is Excluded from a Typical Renters Insurance Company?

Anything that came with your rental includes fixtures like ceiling chandeliers or appliances like refrigerators.

If these get damaged, the landlord pays to replace them.

Disasters That Are Not Covered

Along with floods, some disasters that are not covered include earthquakes and terrorist attacks.

If you live in an area prone to earthquakes, most insurers offer earthquake protection as an add-on to your policy.

Renters can purchase coverage only for the contents within the rental.

That's because the landlord uses the landlord's insurance to pay for structural damage to an apartment complex, a condo building, or a townhouse.

Renters are entitled to the same maximum coverage limits on the same items as homeowners.