Keeping Your Home Dry: Water Mitigation and Homeowners Insurance

Water damage is one of the most common and costly home insurance claims. In fact, roughly 1 in 60 households file a claim due to water damage yearly, with an average cost of nearly $14,000, according to the latest available data from the Insurance Information Institute.

Whether it's a burst pipe, a leaky roof, or a flooded basement, the consequences of water damage can be devastating. 

Understanding water mitigation is crucial for protecting your home and minimizing losses. Keep reading to learn essential tips for minimizing damage to your home, and information to help you prepare for, respond to, and recover from water damage.

At a glance:

• Water mitigation is essential for minimizing damage after water intrusion.
  
  
• Proactive prevention, such as regular inspections, gutter or plumbing maintenance, and even water sensor installation can significantly reduce the risk of costly water damage. 
  
  
• Partnering with an insurance provider, like Openly, that offers comprehensive coverage and partners with trusted water mitigation experts can ensure a smooth recovery process. 
  
  

What is water mitigation?

Water mitigation is the process of controlling and minimizing water damage to a property after a flood or other water intrusion event. Water mitigation is a time-sensitive process that aims to:

• Prevent further damage by stopping the source of the water, drying affected areas as quickly as possible, and preventing mold and fungi growth.
  
  
• Limit structural damage through rapid drying, thereby minimizing warping, rotting, and other structural issues.
  
  
• Reduce health hazards such as mold and mildew growth, which can pose serious health risks to occupants of the home.

Importantly, prompt mitigation can help homeowners return to their homes more quickly, if they have been forced into alternative housing due to water damage, or simply get their home back to the way it was sooner. 

The role of homeowners insurance in water mitigation

Most standard homeowners insurance policies include coverage for water damage, but with important exclusions. 

Typically, coverage applies to sudden and accidental events, such as burst pipes, overflowing appliances, and damage from severe storms. However, coverage may be limited to specific perils such as fire, wind, and hail, which can lead to water damage. It is also important to note that most homeowners insurance policies do not cover flood or surface water. Additionally, home insurance policies typically have limits on the amount of coverage for water damage, along with applicable deductibles. 

Understanding your policy

For homeowners to be fully prepared for the unexpected, it isn’t just about understanding how home insurance, water mitigation efforts, and water damage work together; it's about understanding the specific terms, conditions, and exclusions of your specific home insurance policy. 

It is recommended that homeowners regularly review their home insurance policy to ensure it remains up to date and provides adequate coverage. If you’re concerned about your levels of coverage, gaps in coverage, or any other policy-related questions, don’t hesitate to talk to your insurance agent. They will be able to help you explore options for endorsements, standalone policies such as flood insurance policies, or higher limits for water damage. 

Exclusions to look for

It’s important to remember that home insurance policies typically come with exclusions, which can extend to types of damage, earth movements, or subsequent damage as a result of water damage. 

For instance, standard home insurance policies typically do not include coverage for gradual water damage caused by things like leaky roofs, foundation issues, or plumbing problems. These are generally considered maintenance issues that a homeowner should be aware of prior to any resultant damage. 

In addition, standard homeowners insurance policies typically do not cover damage caused by floods. If you live in an area prone to flooding, you may want to consider purchasing a separate flood insurance policy; check out the National Flood Insurance Program (NFIP) or talk with your insurance agent about private flood insurance. 

Other home insurance exclusions for water damage include damage caused by earthquakes, which can result in ruptured pipes or flooding, as well as mold or fungi remediation. However, some insurance providers, like Openly, include limited coverage for mold and fungi, which is why it's important to review your policy or speak with your insurance agent about your coverage—you may already be covered against certain damage!  

Preventing water damage 

The financial burden of home repairs is a significant concern, with 40% of homeowners actively mitigating risks; this is particularly important when addressing water damage, a costly issue that can cause structural problems, mold, and health risks, making prevention paramount.

Here are some essential steps you can take to help prevent water damage:

• Conduct regular inspections—Look for leaks in pipes, faucets, and appliances. Be sure to also check for signs of water intrusion around windows, doors, and the foundation of your home and other structures.
  
  
• Maintain your plumbing—Regular inspection and maintenance of your plumbing system can help prevent leaks and burst pipes by identifying vulnerabilities before they become problems.
  
  
• Install water sensors—Water sensors can be placed in areas prone to leaks, such as under sinks, near appliances, and in basements. These sensors can alert you to leaks early on, minimizing damage and allowing you to swiftly begin water mitigation efforts.
  
  
• Invest in a sump pump—If your home is prone to flooding, consider installing a sump pump to remove excess water from the basement.
  
  
• Proper drainage—Proper drainage and grading can help prevent water from pooling near the foundation, leading to potential water damage.
  
  
• Regular roof inspections—Consider having your roof professionally inspected annually to identify and repair any leaks promptly. Be sure to also ensure gutters and downspouts are clean, functioning properly, and directing water away from your home’s foundation.

Remember to address any leaks you identify as soon as possible. Small leaks can quickly become major headaches.

What to do if water damage occurs

If you experience water damage, it's essential to act quickly to minimize losses. Here are 6 steps you can take to quickly mitigate damage:

1. Safety first—If the water damage is caused by a storm or other dangerous situation, prioritize the safety of yourself and your family. Evacuate if necessary and contact emergency services as soon as possible.
   
   
2. Stop the source of water—If possible, shut off the water supply to the affected area. This can involve turning off the main water valve to your home.
   
   
3. Document the damage—When it's safe to do so, and you’ve stopped the flow of water to the affected area, take photos and videos of the damage from all angles. This visual documentation will help speed up your insurance claim.
   
   
4. Remove water and belongings—Use mops, buckets, and towels to remove excess water. Remove any items that can be damaged by water to prevent further losses.
   
   
5. Contact your insurance provider—Notify your insurance provider immediately about the water damage. You may also want to consider reaching out to your insurance agent as well. They can help guide you through the claims process.
   
   
6. Water mitigation—Call a water mitigation or water restoration company to assess the damage and initiate the mitigation process. If you do not know where to start, contact your insurance agent or insurance provider, as they may have a list of trusted mitigation experts who can help you restore your home quickly and efficiently. 
   
   

What does water mitigation include?

Water damage restoration can be complicated and may require specialized expertise. For a better understanding of what steps are involved in a water mitigation operation, read on.

Water extraction

The first step in water mitigation is removing as much water as possible to minimize further damage. Professional water mitigation experts use powerful water equipment, like wet / dry vacuums, pumps, and water extractors to remove standing water. Because water can easily seep into hidden areas like subfloors or even wall cavities, thorough extraction is key. 

Drying

After the standing water is removed, the drying process begins so as to prevent secondary damage such as mold growth or structural integrity issues. Dehumidifiers and high powered fans are used to remove moisture from the air, speed up evaporation, and subsequently accelerate the drying process in affected areas. 

Mold remediation

If mold growth unfortunately does occur, professional remediation is essential to the safety of those in the home. Experts can conduct mold assessments to determine the extent of mold growth and determine a course of action. Depending on the severity of the mold growth, removal may involve cleaning, sanitizing, or even replacing materials such as drywall, insulation, and flooring.

Professional intervention is recommended as mold remediation often requires specialized safety equipment and expert technicians to prevent the spread of mold and limit potential future health hazards.

Structural repairs

If the water damage is extensive, it may weaken structures, so a thorough assessment is recommended to identify structural damage, such as warped wood, weakened support beams, and damaged drywall. Repairs may include replacing damaged framing, repairing or replacing drywall, and reinforcing weakened structures. 

Contents restoration

Restoring damaged belongings is an essential part of the water damage recovery process. Many items can be salvaged through professional cleaning, sanitizing, drying, and dehumidification. Be sure to review your policy for coverage limits for personal belongings to ensure you have enough coverage to repair or replace damaged items.

Working with insurance providers

Your homeowners insurance policy likely covers certain water damage, but it's important to understand the limitations and exclusions of your unique home insurance policy. 

Review your policy

As previously mentioned, it's important to understand the extent of your coverage for water damage. Does your policy have specific exclusions such as flood damage or damage from sewer backups? What are your coverage limits? What is your deductible for water damage? 

Document the damage

Documenting the water damage with photographs or video can save you time and stress. When documenting the damage, be sure to note the date and time of the incident. 

If you’ve previously created a home inventory, you may have already saved yourself from a huge hassle. A home inventory of all your items, including receipts and appraisals, will help speed up the claims process and ensure your belongings are adequately covered. 

Hire professionals

A reputable water damage mitigation company with experience working with insurance providers can also speed up the restoration process. These companies understand the type of detailed documentation of the damage and the restoration process that an insurance provider needs to move forward with your insurance claim. 

Additional tips for water damage prevention 

Proactive measures to minimize the impact of water damage is important to ensuring you get back on your feet quickly. Beyond the preventative steps discussed earlier, consider these additional tips:

Create an emergency plan

A comprehensive emergency plan for your household ensures everyone in the home understands their role prior to an emergency. This plan should include:

• Contact information for emergency services, water restoration companies, plumbers, your insurance agent, and family, friends, or neighbors who can help in this type of situation.
  
  
• Steps to take in case of a water emergency (e.g., shutting off the main water supply, locating the emergency shutoff for appliances), evacuation routes or meeting points for family members if you are forced out of your home, or a designated safe area within the home. 

To make creating an emergency plan easier, we’ve created a downloadable Water Damage Emergency Plan checklist.  

Consider additional coverage

A careful review of your home insurance policy can identify any coverage gaps you may currently have. If you identify gaps in coverage, a supplemental policy may keep you from being underinsured and paying out-of-pocket in the event that damage is not covered by your home insurance policy. 

Maintain proper ventilation

Exhaust fans and windows are there for a reason beyond just keeping you cool. Adequate ventilation enables you to prevent moisture buildup. Be sure to use the exhaust fans in bathrooms and kitchens, periodically open windows when the weather permits, and consider using dehumidifiers in damp areas like basements. 

Water damage prevention: a final word 

Water mitigation isn’t merely a reactive measure; it’s a proactive strategy for safeguarding your home and wallet. Understanding the causes of water damage, implementing preventative measures, and knowing how to respond effectively can significantly minimize the impact of water damage.  

Whether it's a minor leak or a major flood, preparedness and prompt action are your strongest allies in navigating the challenges of water damage and ensuring a swift return to normalcy. 

Fortunately there are insurance providers, like Openly, that understand the complexities of water damage and offer coverage for often-excluded perils like mold and fungi remediation, water backup, and water seepage coverage. Review your policy, understand your options, and partner with an insurance provider like Openly that can help you confidently face the unexpected. 

Water Damage Frequently Asked Questions

What is water mitigation?

Water mitigation is focused on immediate, preventative actions taken to minimize further damage after a water damage event. Mitigation is about stopping the source of water, removing standing water, and taking initial steps to prevent secondary damage, like mold growth.

What is water remediation?

Water remediation often is used to refer specifically to the removal of hazardous materials, like mold or black water, that result from water damage. This step involves identifying, containing, and eliminating contaminants to ensure a safe environment. 

What is water restoration?

Water restoration is a term used to encompass the entire process of returning a property to its pre-damage condition, including water mitigation and remediation. It includes drying, cleaning, sanitizing, and repairing structural or cosmetic damage. 

Does home insurance cover water damage?

Generally, homeowners insurance covers sudden and accidental water damage, like burst pipes or appliance leaks, but excludes gradual damage (leaky roofs) or floods or surface water, which requires a separate flood insurance policy.

* We provide this information to help you understand insurance. Any coverage is subject to the terms of your policy. Please refer to your policy and declarations page for complete terms, conditions and coverage details.

** Openly may provide links that lead to an external website that may promote goods and services that Openly does not endorse. We are not responsible for the content, claims, or representations made on the linked website. Please review their terms and policies before engaging with any offerings.

¹  Insurance Information Institute. “Facts + Statistics: Homeowners and Renters Insurance.” III.org. Accessed 26 February 2025. https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance

²  Insurance Information Institute. “Homeowners Perception of Weather Risks 2023Q2 Consumer Survey.” III.org. Published 2023. Accessed 26 February 2025. https://www.iii.org/sites/default/files/docs/pdf/2023_q2_ho_perception_of_weather_risks.pdf

³ The Home Depot. “The Full Guide: Water Damage Restoration.” thehomedepot.com. Published 12 August 2024. Accessed 26 February 2025. https://www.homedepot.com/c/ab/full-guide-water-damage-restoration/9ba683603be9fa5395fab9011c2d3e9b