Does Homeowners Insurance Cover Basement Floods Caused by Overflowing Gutters?

Homeowners can face many types of incidents that impact their homes, including those that aren’t their fault. If your basement floods because of an overflow in your home's gutters, it may not be covered by your homeowners insurance. To understand if a claim would be covered, it's necessary to review the different causes of basement floods, even when related to gutters.

Fortunately, an independent insurance agent can help you get covered with the right policies. They’re well-versed in knowing exactly what kind of coverage is required and can get you set up with it long before you ever need to file a claim. But first, here's a breakdown of when home insurance might cover basement floods caused by your gutters.

Does Homeowners Insurance Cover Basement Floods Due to Gutters That Weren't Installed Correctly?

Unfortunately, not all professionals always do their jobs correctly when working on your home. Further, homeowners insurance doesn’t cover faulty workmanship. You would have to rely on any warranties you have from the installer or the builder. 

Always hire professionals who are licensed and insured to work on your home, just in case of an incident like this, in which you may have to sue. Also, always ask for a company’s credentials upfront, including proof of contractors insurance.

Would the Contractor's Business Insurance Cover the Basement Flood?

If you were to file a claim through your homeowners insurance, your insurance company would deny the claim. Instead, you would have to pursue the contractor or builder. 

The gutter installation company’s business insurance would pay for the “completed operations cost,” meaning they would reimburse for the damages to the homeowner’s house. However, the company would not pay the contractors to redo the job that they botched the first time.

What if the contractor's insurance didn't cover it?

If the gutter installation business’s insurance didn’t cover the damages, it could be tricky to file a homeowners claim and get it approved. An inspector would have to determine how exactly the water got into your basement and why. If the cause of the water damage to your basement wasn’t due to a covered peril, and the gutter installation business’s insurance didn’t cover the flooding, you might end up being out of luck.

When Does Homeowners Insurance Cover Flooding from Gutters? 

The property coverage section of your homeowners insurance covers flooding within the home due to certain causes. Typically, property coverage only protects against water damage if it comes from inside the home, such as with defective plumbing or a broken appliance. It’s not usually possible to get flooding covered if the water comes from outside the home unless a hole within the home’s structure is discovered during an inspection.

Consider gutters again. Aside from bad installation jobs, there are a couple of types of incidents that can cause basement flooding that may be covered by home insurance. 

If your gutters form ice dams in the winter that lead to overflow, which floods your basement, you may have coverage through your home insurance for the incident. However, if the ice dams formed due to the homeowner's lack of maintenance or failure to keep their gutters clear before winter hit, it could be hard to get the claim approved.

Also, if a fallen object like a tree damages your gutters or tears them off of your house, which leads to a flooded basement, these types of incidents are likely covered by home insurance as well. Fallen objects and trees are a covered peril under standard home insurance policies. Double-check your specific home insurance policy for more information about coverage for fallen tree damage.

When home insurance doesn't cover flooding

Flooding due to natural water sources, such as hurricanes and tsunamis, is not covered under standard homeowners insurance policies. For these situations, you’d need a separate flood insurance policy. 

Flood insurance is available through the National Flood Insurance Program, which is a part of the Federal Emergency Management Agency (FEMA), and through private insurers. Home insurance also won't cover flooding due to the following incidents:

• Lack of home maintenance or upkeep
• Seepage leaks from fountains
• Intentional acts
• Earthquakes or "earth movement"
• Sewer backups or sewer line breaks
• Sump pump failures

You can also ask your independent insurance agent about adding sewer backup endorsements to your home insurance policy. These can add coverage that provides reimbursement for incidents of sewer backups or sewer line breaks, as well as sump pump failures.

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Other Common Risks Home Insurance Covers

Aside from flooded basements due to bad installation jobs, there are plenty of other property damage risks that homeowners need to consider protecting. Fortunately, the following common perils are also covered under the property damage section of standard homeowners insurance policies:

An independent insurance agent will help you consider all risks unique to your home and ensure you get set up with all the property damage coverage you need. They’ll also be able to review your specific insurance policy and spot coverage gaps in any areas of concern. If you’re lacking protection in an area, they’ll help to patch those holes.

An Independent Insurance Agent Can Get You Covered

When it comes to protecting your home from basement flooding due to improper professional work and all other incidents, no one’s better equipped to help than an independent insurance agent. Independent insurance agents search through multiple carriers to find providers who specialize in homeowners and property insurance, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.