Does Homeowners Insurance Cover Hot Water Heaters?

As a homeowner, you know that buying and replacing appliances can be expensive. You may be hoping that your homeowners insurance policy could pay to repair or replace various devices in your home, such as your hot water heater. However, it's important to understand that your home insurance policy might not always cover hot water heaters.

A local independent insurance agent can help you get set up with a home insurance policy if you're in need. They can also ensure you have all the protection necessary to protect your personal property. But first, here's a closer look at whether, when, and how home insurance can cover hot water heaters. 

Table of Contents

• Does Homeowners Insurance Cover Hot Water Heaters?
• When and How Does Home Insurance Cover Hot Water Heaters?
• If My Home Insurance Covers My Hot Water Heater, How Much Do I Have to Pay?
• If Homeowners Insurance Doesn't Cover My Hot Water Heater, What Will?
• Why Work with an Independent Insurance Agent?

Does Homeowners Insurance Cover Hot Water Heaters?

The appliances in your home, including hot water heaters, are not always covered by standard home insurance policies. Home insurance companies consider upkeep and routine repairs to be the homeowner's responsibility, including for appliances. As such, your home insurance usually won't cover hot water heater repairs or replacement due to the following:

• Aging of the appliance
• General wear and tear of the appliance
• The owner's failure to maintain their appliance
• Manufacturing defects in the appliance
• Faulty piping and plumbing connected to the appliance
• Faulty installation of the appliance

If you neglect your hot water heater and don't routinely make the repairs or adjustments it needs, your home insurance policy is unlikely to cover it. Your independent insurance agent can further explain when your hot water heater isn't covered by home insurance.

When and How Does Home Insurance Cover Hot Water Heaters?

It’s important to review your specific homeowners insurance policy first to be sure it includes coverage for hot water heaters, and there’s a good chance it does. Assuming these issues aren't caused by any of the items listed above, such as the owner's neglect, here are a few common ways hot water heaters can be covered under many homeowners policies:

• Water damage: Busted hot water heaters spew tons of water, leading to all kinds of potential damage. Over time, valves might burst, fittings may loosen, or the unit may become rusty. Whatever the cause of the unit breaking down, homeowners insurance can provide coverage for the water damage aspect.
• Furniture and carpet cleanup: After a busted hot water heater leaves wet trails behind, you may end up with some furniture and carpeting that gets soaked and potentially covered in mildew. Coverage can pay for the cleanup of furniture and carpeting, but it will not pay the full replacement value for your carpet. The carpet’s value depreciates over time, so insurance will usually only cover what it’s currently worth.
• Wood flooring: Wood flooring that's badly damaged by water from a broken water heater and must be torn up and replaced will likely be covered under your homeowners insurance.

Damage to the hot water heater itself may also be covered by your home insurance policy if the appliance is treated as personal property. In such a case, your home insurance may pay for repairs or replacements of the device if the following occur:

• House fires
• Theft or vandalism
• Lightning 
• Tornadoes

Make sure to review your specific home insurance policy with your independent insurance agent. They’ll be able to help you understand exactly what kind of coverage you have for your hot water heater.

If My Home Insurance Covers My Hot Water Heater, How Much Do I Have to Pay?

If the hot water heater causes covered structural damage to your home, after paying your deductible, you’ll be responsible for paying any amount exceeding your homeowners policy’s limits in the dwelling coverage category, which is likely the value of your home. 

In case your water heater itself is damaged, you'll be responsible for paying the deductible in the contents or personal property section of your policy. If you’re concerned about not having enough coverage, you can work with an experienced independent insurance agent to get a policy with a lower deductible or to increase your coverage limits.

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If Homeowners Insurance Doesn't Cover My Hot Water Heater, What Will?

If you have a home equipment warranty for your hot water heater, it will generally cover the cost of the unit’s replacement if it breaks down. These warranties can also help with damage to the water heater and may reimburse you if the installation job was botched. General wear and tear on an appliance is unlikely to be covered by even a warranty past a certain date. Keep up with your hot water heater’s routine maintenance for your best bet at preventing a catastrophe. 

Why Work with an Independent Insurance Agent?

When it comes to finding the right coverage for appliances like hot water heaters and all other elements of your home, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple home insurance companies near you so they can shop and compare polices and rates to find you the best deal. And down the road, your agent can help you update your coverage and even file home insurance claims for you.