Insurance typically covers water damage from sudden, accidental leaks—like a burst pipe or failed water heater connection. The average covered claim pays out around $13,000 to $15,000 for water damage restoration.
However, insurance usually won’t cover damage from gradual leaks that develop over time, especially if they could have been prevented with proper maintenance. They also don’t typically cover the cost to repair the actual leak itself, just the damage it caused.
This is exactly why early detection and professional repair make financial sense. It’s much cheaper to fix a $300 leak than to file a $13,000 insurance claim—and you avoid the hassle of dealing with adjusters, contractors, and potential premium increases.