Property · Insurance Term
Water Damage
Definition
Water damage is harm to a building or contents from water, and whether it is covered depends on where the water came from. Sudden leaks from pipes or appliances are often covered. Flood, surface water and slow long-term leaks are commonly excluded, and sewer backup usually needs added coverage.
In Plain English
Insurers look at the source. A pipe that bursts suddenly is commonly covered on special form policies. Water from outside at ground level is usually treated as flood and requires flood insurance. Water backing up through drains is usually a separate sewer backup coverage option.
Repeated or continuous leaks over 14 days or more are commonly excluded. Mold that results from water is also usually limited.
Fire sprinkler leaks are handled under their own sprinkler leakage coverage. Frozen pipes are often covered only if you kept heat on or drained systems.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: an upstairs apartment's water heater fails and floods three units below. Repairs cost $60,000. A special form policy may cover the sudden discharge, minus the deductible, but not the cost of replacing the water heater itself.
Why It Matters for Texas Property Owners
Texas owners face several water sources at once: Gulf hurricanes, flash flooding, freeze events like Winter Storm Uri, and tropical rainfall. Each may fall under a different coverage part or none.
What to Watch For
- Ask how your policy treats flood, surface water, sewer backup and leaks.
- Check your sewer backup and mold limits.
- Keep heat on and inspect vacant units for leaks.
- Fix leaks promptly, since long-term leaks are commonly excluded.
Common Questions
Is water damage covered by my commercial property policy?
It depends on the source. Sudden internal leaks are often covered, while flood, surface water and long-term seepage are commonly excluded.
Do I need flood insurance if I'm not in a flood zone?
Many Texas properties outside high-risk zones still flood from heavy rain. Flood is excluded from most property policies, so a flood policy is usually the only way to cover it.
Last updated October 14, 2026 · Primesure editorial team · How We Write