Water damage claims: what you need to know

A leak in the wall, a burst pipe, the bathroom ceiling from the neighbour’s flat collapsing…
Water damage is one of the most common reasons for home insurance claims and, at the same time, one of the sources of most doubts and disputes with insurers.

Does insurance cover a water leak?
What if the source is the flat above?
What happens if the insurer says it is not an accidental loss?

In this guide we explain how to properly claim water damage, what insurance covers (and what it doesn’t), how compensation is calculated and what to do when the insurer raises objections.

In practice, many water damage disputes do not arise from the policy itself, but from how the cause of the loss is identified and how the real extent of the damage is assessed. When reviewing home insurance claims, it is common to find misclassified leaks, gradual damage treated as maintenance issues, or valuations that leave out part of the work required for a proper repair.

What does insurance cover for water damage?

Most home insurance policies include specific cover for water damage, although the scope always depends on the individual policy terms and on how the cause of the loss is defined.

In general, the following are usually covered:

• Accidental breakage of pipes, taps or downpipes
• Water leaks originating from private installations
• Damage to ceilings, walls, floors and finishes
• Damage to furniture and insured belongings
• Third-party liability if water causes damage to others (for example, a neighbour)

It is important to remember that not all policies provide the same cover, limits or excesses.

What water damage is usually not covered?

Although this varies by insurer, many policies exclude or limit:

• Damage caused by lack of maintenance (old damp, damaged tiles, deteriorated joints)
• Gradual or slow-occurring damage. This is a frequent source of dispute: for example, a small pore in a pipe may be considered maintenance, while a clear rupture is usually treated as accidental damage.
• Flooding caused by extraordinary natural events. In these cases, cover is not provided by the private insurer but by the special protection funded through the surcharge paid to the Insurance Compensation Consortium, designed to absorb exceptional or large-scale losses.
• Damage resulting from improper use of installations or appliances

The line between accidental damage and gradual damage is not always clear and often depends on how the loss is documented and assessed.

What to do if you suffer water damage at home

If a leak, rupture or filtration occurs, these are the recommended steps to claim correctly.

1. Shut off the water supply (if possible)

If the source is in your home, close the stopcock to prevent further damage.

2. Document the damage

Take clear photos and videos of:

• Damp or collapsed ceilings and walls
• Damaged floors
• Affected furniture or appliances
• Stains, mould or water accumulation

The more visual evidence you have, the easier it will be to support the claim, especially if the damage evolves over time.

3. Notify the insurer

The usual legal deadline is 7 days from when the damage is discovered, unless the policy states otherwise.

Whenever possible, keep written proof of the notification.

4. Complete the claim report

Clearly describe:

• When the damage was discovered
• How it occurred. If you do not know, do not speculate — you are not required to know the cause.
• Which areas and items are affected, stating that these are all the damages observed so far
• Whether any technician has intervened (plumber, electrician, etc.)

An imprecise description can condition the entire claim.

5. Keep invoices and estimates

If you carry out urgent repairs, always keep the invoices.
Estimates are also useful to justify the real cost of the damage.

6. Loss adjuster’s visit

The insurer will send a loss adjuster to assess the damage.
It is important to accompany them, show all affected areas and explain what happened.

Their report will be decisive for the compensation.

When the assessment falls short (an important point)

There is a key aspect that is rarely explained and often makes a significant difference to the final settlement.

Reviewing a claim with the property owner, even if they have technical training (engineer, architect, etc.), is not the same as reviewing it with a claims specialist or loss assessor. The difference is not technical knowledge, but the ability to translate damage into the language and parameters used by insurers.

This is where insurers often reduce compensation — not because the damage does not exist, but because it was not properly documented and justified at the right time.

A very common example in water damage claims involves tiles and wall finishes.

In many assessments, a wall is considered “fine” because the tiles have not yet fallen off. However, after a prolonged leak, the adhesive behind the tiles may have deteriorated even if the damage is not visible.

In more thorough inspections, lightly tapping the tiles with a key or even a ring changes the sound and reveals hollow areas. The tiles have not fallen yet, but it is only a matter of time.

This is a clear example of what we call hidden damage: the damage exists even if it is not yet visible. If it is not identified and justified during the initial assessment, it is often excluded from the valuation, even if it becomes evident weeks or months later.

Water damage caused by a neighbour

This is one of the most common situations.

When the source of the damage is another property:

• You must notify your own insurer. Sometimes the neighbour may already have reported the incident to their insurer, but it is important to understand that their insurer does not work for you — their client is the neighbour, not you.
• Your insurer will contact the neighbour’s insurer.
• If the neighbour has no insurance, your policy may still cover you (depending on the terms) and later seek recovery.

Handling the issue directly without involving insurers usually complicates the process.

Flooding caused by heavy rain or extraordinary events

If the damage is caused by torrential rain, overflows, hail or other extraordinary events, it is usually not covered by private insurers.

In these cases, the Insurance Compensation Consortium intervenes.

To claim from the Consortium you will need:

• A valid insurance policy
• Photos of the damage
• A claim report
• Invoices or proof of loss

How compensation for water damage is calculated

Compensation depends on several factors:

• The loss adjuster’s assessment
• Policy limits and excesses
• Whether the damage affects the building (structure) or contents

The insurer may pay for repairs, reimburse costs already incurred or replace damaged items.

This is why it is essential to justify the real extent of the damage, not just what is visible.

What to do if the insurer rejects or reduces the compensation

It is not uncommon for insurers to allege lack of maintenance, offer compensation far below the real cost, or delay the resolution.

In such cases you can submit a written complaint to the customer service department, provide an independent expert report, escalate the complaint to higher authorities or seek support from professionals specialised in insurance claims.

Conclusion

Water damage is one of the most common household losses, but also one of the most disputed.

Acting quickly, documenting the damage properly and reviewing the assessment with technical criteria makes the difference between receiving fair compensation and falling short.

Are you having problems with a water damage claim?

We analyse your policy, the cause of the loss and the insurer’s assessment to check whether the compensation is correct or can be improved.

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