When water gets into a home, the first question is usually whether insurance will help. The short version is that it depends on where the water came from and how fast it happened. Here is how a standard homeowners policy usually sorts it out in Illinois, based on what the Illinois Department of Insurance and other published sources say.
What water damage does a standard policy usually cover?
The pattern to remember is sudden, accidental and from inside the house. NerdWallet explains that a home insurance policy typically covers sudden and accidental water damage that starts inside your home. Common examples:
- A burst pipe. The policy generally pays for the resulting damage, like wet drywall and flooring, but not to fix the pipe itself.
- An appliance that suddenly fails. A water heater or washer that gives out is a typical example. The policy generally covers the water damage, not a new appliance.
- A pipe that freezes and bursts. NerdWallet says this is probably covered, with conditions we explain below.
- A roof leak after a windstorm. The storm damage and the water that came in with it would likely be covered.
Two parts of the policy usually come into play. Dwelling coverage pays for the structure, including the roof, walls and floors, and personal property coverage pays for your belongings. Both are limited to the amounts on your declarations page, minus your deductible.
What does a standard policy usually leave out?
The Illinois Department of Insurance lists several gaps in its consumer guide:
- Standard homeowners and renters policies do not cover flood damage.
- Most policies exclude sewer backup and sump pump overflow.
- Mold coverage is usually limited.
- Damage from wear and tear, age, rotting or lack of maintenance is not covered, because it is not sudden and accidental.
NerdWallet adds that a slow drip usually is not covered, and neither is damage that develops over time or could have been prevented with maintenance.
| What happened | What a standard policy usually does | What to ask your agent about |
|---|---|---|
| Pipe bursts inside a wall | Covers the water damage, not the pipe repair | Your deductible |
| Water heater or washer suddenly fails | Covers the water damage, not the appliance | Your deductible |
| Pipe freezes and bursts | Often covered, with heat conditions | The freezing language in your policy |
| Slow leak under a sink for months | Usually not covered | Maintenance exclusions |
| Water comes up through a floor drain | Usually not covered | A water backup and sump overflow endorsement |
| Sump pump fails or overflows | Usually not covered | A water backup and sump overflow endorsement |
| Rain or river water floods in from outside | Not covered | A separate flood insurance policy |
| Mold after a leak | Limited | Your mold limit and whether the leak itself was covered |
What does Illinois law say about sewer backup coverage?
This is where Illinois has a specific rule. Public Act 103-0858, passed as House Bill 5357, added Section 143.21d to the Illinois Insurance Code. According to the enrolled bill, starting January 1, 2025:
- When you apply for homeowners insurance, the insurer must give you information about coverage for loss caused by a sewer backup or sump pump overflow, including the limits and costs.
- At least 30 days before each renewal, the insurer must tell you what sewer backup and sump pump coverage you have now, what is available, and the limits and costs.
That notice is worth reading in Chicago. Most of the city’s sewers carry rainwater and wastewater in the same pipes, and WBEZ reported that, based on MWRD modeling, the system can be overwhelmed after two-thirds of an inch of rain in an hour. For a sense of the numbers, NerdWallet found that water backup limits often start around $5,000 per year and that the coverage can cost up to $250 per year.
How do frozen pipes fit in during a Chicago winter?
A pipe that freezes and bursts is often covered, but there is a condition. An insurance-industry reference published by PropertyCasualty360 explains that the policy requires the heat to be left on or, if the heat is turned off, the pipes to be drained of water. Check how your own policy words this, especially if you travel in winter or own a two-flat with a unit that sits empty.
A few prevention steps from published guidance:
- The American Red Cross says to keep the heat no lower than 55 degrees Fahrenheit when you are away, let cold water drip from faucets served by exposed pipes, and open kitchen and bathroom cabinet doors.
- The City of Chicago recommends insulating pipes on the outside walls of your home and keeping heat on in basements, crawl spaces and closets that hold water lines.
- If a pipe freezes, the City says to thaw it with a hair dryer or heating pad, never an open flame.
If a frozen pipe has already burst, shut off the main water valve and see our burst pipe water damage page.
Will insurance pay for mold after a leak?
Sometimes. NerdWallet explains that if your policy pays for the water damage that caused the mold, it may also pay to remove it, and that mold can form in as little as a day or two after water damage. The Illinois Department of Insurance notes that mold coverage is usually limited. Mold from a long, slow leak often runs into the maintenance exclusion instead.
Timing matters here. The EPA says to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth. If mold has already started, our mold remediation page explains what that work involves.
What should I do first when I file a claim?
The Illinois Department of Insurance and NerdWallet point to the same early steps:
- Stop the damage if you safely can. The Department says it is your responsibility to mitigate against further damage, which means taking reasonable steps so things do not get worse. If water could reach outlets or appliances while the power is on, stay out and call a licensed electrician or your utility. Call 911 for any emergency.
- Take photos first. Photograph the damage before cleanup, but only if it is safe to be in the area.
- Call your agent right away and give a detailed description of the damage.
- Make temporary fixes only. NerdWallet says not to schedule major work until your insurer has reviewed the damage.
- Watch for a proof of loss form. The Department says your insurer may send one for you to complete.
Our insurance claims page explains how we work alongside your adjuster.
How long does an Illinois insurer have to respond?
Illinois rules set some timelines:
- Your messages: Insurers must respond within a maximum of 15 working days from receiving a communication from you (50 Ill. Adm. Code 919.40).
- Investigation: When liability is reasonably clear, the insurer must make a good faith effort to communicate with you within 21 working days after you report the loss.
- Decision and payment: The insurer must affirm or deny liability within a reasonable time, and offer payment within 30 days after affirming liability if the amount is determined and not in dispute (50 Ill. Adm. Code 919.50).
- Denials: If a claim is denied or paid at less than you claimed, you are owed a written explanation within 30 days after the insurer finishes its investigation and decision.
If you have a dispute, the Illinois Department of Insurance takes complaints in writing and answers general questions at (866) 445-5364. It says insurers have 21 days to respond to a complaint and that its investigations take about four to six weeks.
This is general information, not legal or insurance advice. Policies differ, so check your own policy and talk to your agent or adjuster about your situation.
When to call a restoration company
If water has soaked drywall, flooring or belongings, or came up through a drain, call us. Here is what happens:
- A person answers, 24 hours a day, seven days a week.
- We ask what happened, where the water came from and whether the power is safe.
- We send a crew to stop the spread and start drying out your home.
- We document everything for your insurance company, so your adjuster can see what we found and what we did.
When you are ready, you can contact us here.