Does Homeowners Insurance Cover Pipe Damage?

Homeowners insurance is crucial for ensuring the security and well-being of your Texas property. Unique challenges such as extreme weather conditions and aging infrastructure can significantly impact your home, so understanding the extent of your policy’s coverage is more important than ever. Pipe damage, a common yet potentially costly issue, stands at the forefront of homeowners’ concerns in the Lone Star State. 

Whether stemming from sudden freezes that lead to burst pipes or the gradual wear and tear on an older home’s plumbing system, the financial repercussions can be substantial. This makes it vital for homeowners to know if and how their insurance policy comes into play in such scenarios.

A Texas homeowners insurance claim lawyer can shed light on the nuances of insurance coverage for pipe damage, empowering you with the knowledge to protect your home effectively.

Make Sure You Have a Basic Knowledge of Texas Homeowners Insurance

Homeowners insurance is a safeguard for your home, offering financial protection against various forms of damage and liability. Generally, it covers damage to the interior and exterior of your house, loss or theft of possessions, and personal liability for harm to others.

This encompasses events like fires, storms (excluding certain natural disasters like floods and earthquakes, which are covered under separate policies), theft, and vandalism. However, it typically does not cover damage due to lack of maintenance, wear and tear, or intentional acts.

In Texas, homeowners can choose from several types of policies, known as “forms,” that offer different levels of coverage. The most basic, HO-A, provides limited actual cash value coverage for specified perils. More comprehensive options, like HO-B, offer broader coverage against all perils unless explicitly excluded.

Other forms include HO-A amended policies, which offer slightly broader coverage than the basic HO-A, and the HO-C policy, which provides the most extensive coverage. Selecting the right policy involves balancing your need for protection with your budget and the specific risks your home faces in Texas.

Pipe Damage and Your Insurance Policy

Pipe damage in Texas homes can arise from various sources, significantly affecting a homeowner’s peace of mind and financial stability. Common causes include freezing temperatures that cause pipes to burst, seismic activity or construction activity leading to shifts and cracks, and soil shifting beneath homes that disrupts plumbing infrastructure. Understanding the nuances of homeowners insurance coverage for such damage is crucial for Texas residents.

Most homeowners insurance policies in Texas cover pipe damage that is sudden and accidental. For example, if a pipe unexpectedly bursts due to freezing weather, causing water damage to your home, this would typically be covered. The key here is the unforeseeability and immediacy of the incident, distinguishing it from damage that occurs over time.

Conversely, damage resulting from negligence or lack of maintenance is generally not covered by homeowners insurance. If pipes become damaged because a homeowner failed to properly insulate them against cold weather, or if slow leaks were ignored over time, insurance providers may deny claims on the basis that the damage could have been prevented with proper upkeep.

Water Damage Resulting from Pipe Damage

When pipe damage leads to water damage inside the home, this is often covered by homeowners insurance, provided the cause of the pipe damage is covered. This includes water damage to walls, flooring, and personal property. However, the distinction lies in the cause of the pipe damage itself; if the cause is not covered, any resulting water damage may also be excluded from coverage. Here are some examples:

• Covered Scenario: A pipe suddenly bursts during a rare Texas freeze, causing water damage to the living room. This is typically covered as sudden and accidental.
• Not Covered Scenario: Over time, a pipe slowly leaks due to corrosion, eventually causing damage. This could be considered a maintenance issue and might not be covered.

In summary, the coverage of pipe damage under homeowners insurance in Texas largely depends on the cause and nature of the damage. Sudden, accidental events are usually covered, whereas issues stemming from neglect or gradual deterioration are not.

Potential Exceptions and Exclusions

When it comes to homeowners insurance, not all types of pipe damage are covered. Policies typically include exclusions and exceptions that homeowners should be aware of to avoid unexpected out-of-pocket expenses. A common exclusion is damage resulting from normal wear and tear or deterioration over time.

Insurance is designed to protect against sudden and unforeseeable incidents, not the inevitable aging process of a home’s plumbing system. Intentional damage caused by the homeowner or residents is also excluded, as insurance policies do not cover acts that are deliberately carried out to cause damage.

Another scenario where pipe damage might not be covered is if the home was unoccupied for a prolonged period, and the homeowner did not take the necessary precautions to prevent potential damages, such as turning off the water supply or maintaining adequate heating to prevent freezing. 

Insurers may view the lack of preventive measures as negligence, leading to denied claims for pipe damage. Understanding these exclusions and conditions is vital for homeowners to ensure they are adequately protected and to take necessary preventive actions.

When Is It Time to Call a Pipe Damage Attorney?

Homeowners might find themselves in need of legal assistance for several reasons related to their insurance policies, including:

• Bad Faith: If an insurance company unreasonably denies a claim, delays payment, or fails to investigate a claim properly.
• Breach of Contract: When the insurer does not honor the terms of the insurance policy, requiring legal action to enforce the agreement.
• Claim Disputes: Over the valuation of damages, scope of coverage, or interpretation of policy language.
• Underpayment of Claims: Where the settlement offered by the insurance company does not adequately cover the damages incurred.
• Denial of Legitimate Claims: For reasons that are not explicitly excluded in the policy, necessitating legal intervention to secure rightful compensation.

Our legal representation can help navigate these complex issues, ensuring homeowners like you are fairly treated and receive the benefits their policy entitles them to.

When Making Texas Pipe Damages Claims, Call Our Lawyers

At Carrigan & Anderson, PLLC, our attorneys are ready to help you through the claims process. Insurers don’t always want to cooperate, and we are here to make sure you get the settlement you need to make repairs and recover your losses. Call us now for help.