The short answer for Texas homeowners
Does homeowners insurance cover water damage? For most Texas policies, the answer is yes for water damage that is sudden and accidental, such as a pipe that bursts or a washer hose that splits, and no for damage from a leak that crept along for weeks or from floodwater rising outside.
That is the line the Texas Department of Insurance (TDI) draws in its consumer guidance, and it explains most of the yes and no answers DFW homeowners get from their adjusters. Two homes can have the same soggy carpet and the same stained drywall and still end up with very different claims, because the insurer looks first at the cause and the timing, then at the damage.
Nothing on this page is a promise about your policy. Policies differ by company, by form and by the endorsements you bought, and only your insurer can tell you what yours covers. What follows is how the rules are generally described by TDI and FEMA, so you know what to ask and what to have ready before the first phone call.
Sudden and accidental, or slow and gradual
Insurers sort water losses by how they started. A burst supply line, a toilet tank that cracks, a dishwasher that overflows: these happen at a point in time and are what TDI calls sudden and accidental. A drip under the kitchen sink that rotted the cabinet floor, or a shower pan that has been seeping into the subfloor since last year, is gradual, and TDI says most home policies leave out damage from gradual leaks or seepage, an exclusion that usually reaches the mold growing from them too.
Hidden leaks sit in the middle. The water may have been running inside a wall for a while before anyone could see it, and some Texas policy language treats a loss that stayed concealed until it could be detected as sudden, as long as you report it promptly once you find it. That is one reason to call your insurer soon after you notice a stain, a floor spot that feels warm, or a water bill that suddenly climbs, and to write down the date you first saw it.
| What happened | How it is usually treated | What to ask your insurer |
|---|---|---|
| A pipe in the attic froze and split during a hard freeze | Sudden and accidental water damage, which TDI says most policies cover | What is my deductible, and do you cover the pipe repair or only the damage? |
| A washing machine hose broke and soaked the laundry room and hall | Sudden and accidental, a TDI example | Do you want photos of the hose before it is thrown away? |
| A toilet overflowed into the bathroom and the ceiling below | Sudden and accidental, a TDI example | Is cleanup of gray water handled differently from clean water? |
| A slow drip under a sink went unnoticed for months | Gradual leak or seepage, which TDI says most policies do not cover | Is any part of this covered, such as the cabinet or the floor? |
| Water rose from a creek or a flooded street into the house | Flood, which home policies do not cover; a separate flood policy is needed | Do I have flood coverage through the NFIP or a private policy? |
| Sewage came up through a floor drain or toilet | Often excluded unless a water backup endorsement was added | Does my policy include water backup coverage, and what is its limit? |
| Mold grew after a covered burst pipe | May be covered as part of the water loss, often with limits | Is there a dollar cap on mold, and does it include remediation and testing? |
The rows above reflect general guidance, not your contract. Read the section of your policy called "perils insured against" or "covered causes of loss", then the exclusions, then any endorsements stapled at the back. The endorsements are where water backup and mold changes usually live.
Mold: covered sometimes, capped often
TDI's mold guidance follows the same logic as its water guidance. If a covered water loss damages something and mold grows on it, that mold damage may be covered. If the mold came from a long, slow leak, it usually is not. On top of that, many Texas policies limit or exclude the cost of mold remediation, which is the separate work of containing and removing mold beyond simply repairing what the water ruined. A TDI order on a standard mold endorsement, for example, restored coverage for mold that follows a covered sudden water discharge while leaving out the cost of remediation, including testing.
Some insurers have sold optional mold coverage that adds back part or all of what the basic policy leaves out. The Texas Attorney General's office notes that many Texas home policies do not cover mold remediation, and those that do generally cap it. If you do not know whether you have it, your agent can tell you in one call.
Texas also has its own licensing rules for larger mold jobs, where one licensed professional assesses and a different one remediates. Those rules are about who may do the work, not who pays for it. The Texas mold rules guide walks through them.
Flood is a separate policy, and it has a waiting period
FEMA says homeowners and renters insurance typically does not cover flood damage. In insurance terms, a flood is generally water that rises and comes in from outside, like a creek leaving its banks or a street that fills faster than the storm drains can take it. North Texas knows the difference well: during the August 21 and 22, 2022 storm, DFW Airport recorded 9.19 inches of rain in 24 hours and more than 15 inches fell near White Rock Creek in southeast Dallas, and much of the damage that week came from water rising, not from roofs.
How flood coverage works
Most flood insurance is written through the National Flood Insurance Program (NFIP), run by FEMA. Many regular insurance companies sell NFIP policies under their own name, and an agent can quote one. The Texas Office of Public Insurance Counsel notes that private flood policies are also sold in Texas, so it can be worth comparing the two.
The 30 day wait
An NFIP policy generally takes effect 30 days after you buy it. FEMA lists limited exceptions, such as coverage required when you make, increase, extend or renew a mortgage loan, or coverage added after a flood map change. Shopping for one after a storm shows up in the forecast is usually too late for that storm.
Who to call
Flood claims go to the company that sold the flood policy, not to your homeowners insurer. The NFIP help line is 877-336-2627. In its May 2024 flood claim reminder, TDI noted that NFIP policies require you to file a claim within 60 days, and the NFIP is a federal program with its own rules, so read your flood policy's claim and proof of loss terms.
When both policies are involved
One storm can cause both kinds of damage: wind-driven rain through the roof and water rising through the front door. Tell each insurer what you saw and when, and keep separate photos of each kind of damage.
Sewer and drain backup: the endorsement question
A sewer line that backs up into a tub or a floor drain is one of the most unpleasant water losses there is, and it is also one many homeowners discover is excluded only after it happens. Many policies leave out water that backs up through sewers or drains unless the owner added a water backup endorsement, sometimes with its own lower limit. Ask your insurer directly whether your policy includes water backup coverage and what the limit is. If the answer is no, ask what adding it would cost.
Sewage is also the dirtiest kind of water, Category 3 under the IICRC S500 restoration standard. Nobody in the household should wade through it, pets belong in another room, and it is worth reading the sewage cleanup page before anyone starts hauling things to the curb.
Your part: protect the house and document it
Texas policies expect you to act. TDI warns that failing to take reasonable steps to protect the property from further harm can give an insurer grounds to deny the claim, and its claim tips tell homeowners to make temporary repairs that keep the damage from getting worse, then save the receipts. Waiting a week to stop a leak or dry a room can turn a covered loss into an argument about how much of the damage was avoidable.
- Stop the source if it is safe. Close the main water shutoff. Never wade through water that may be touching outlets or appliances, and leave the house and call 911 and Atmos Energy from outside if you smell gas. The first 48 hours guide covers the safety steps in order.
- Photograph and film everything first. TDI advises taking pictures or video of the damage before any repairs. Get wide shots of each room, close shots of stains and waterlines, and the source itself, such as the split hose or the cracked fitting.
- Write down the timeline. When you first saw the water, what you were doing, what the weather was, and who you called. TDI suggests keeping a record of everyone you speak with at the insurance company.
- Report the claim promptly. Ask for a claim number and the adjuster's name, phone number and email.
- Keep damaged items until the adjuster sees them. TDI says not to throw away damaged property until the adjuster has had a chance to look. If something must go for health reasons, such as sewage-soaked carpet, photograph it and keep a piece.
- Hold off on permanent repairs. TDI's guidance is to make only the repairs needed to protect the home until the adjuster has seen the damage. Drying out a house is protection; rebuilding a kitchen is not.
- Save every receipt. Fans, tarps, a hotel night if the house is not livable. TDI notes that most policies pay some of the extra costs of living elsewhere after a covered loss, so ask what yours allows.
The deadlines Texas insurers must meet
Texas has a prompt payment law, chapter 542 of the Texas Insurance Code, that puts clocks on the insurance company once you file. TDI summarizes them for consumers, and they are worth knowing so you can tell when a claim has stalled.
| Step | Deadline for the insurer |
|---|---|
| Acknowledge the claim, begin investigating, ask for the information it needs | 15 days after it receives notice of the claim |
| Accept or reject the claim in writing | 15 business days after it receives everything it asked for; it may take up to 45 more days if it tells you why |
| Pay after saying it will pay | 5 business days |
| After a weather-related catastrophe or major natural disaster | State law adds 15 days to these deadlines |
If a claim is denied, TDI says the company must tell you why in writing. TDI also notes that a company missing these deadlines may be liable for the amount owed, with interest and attorney's fees on top. If you think a deadline has passed, start with the adjuster, then call the TDI Help Line.
Questions to ask your insurer before work starts
Ask these on the first call, write down the answers, and ask for anything important in writing or by email.
- Based on what I have described, is this a covered cause of loss under my policy?
- How large is my deductible on a water loss, and does my policy carry a separate wind, hail or water deductible?
- Does my policy have a limit for mold, and does it include mold remediation and testing?
- Do I have water backup coverage, and what is its limit?
- Is any flood coverage in place, and who handles that part of the loss?
- Will you pay for opening walls or floors to reach the leak, or only for the water damage?
- Do you need to see the damage before a restoration company begins drying, or should drying start now to protect the house?
- Is replacement cost or actual cash value used for my home and belongings, and will payment come in more than one check?
- Is my lender listed as a payee on claim checks, and what must I send it to get the funds released?
- Does my policy pay additional living expenses if I have to stay somewhere else?
- What deadlines in my policy should I know about, such as a proof of loss form?
Checks, deductibles, adjusters and where to get help
Payment in more than one check
Some policies pay a claim in more than one check, for example a first payment before repairs and a second once the work is done, so ask your insurer how yours will be paid. If your mortgage company is on a check, TDI says it must tell you within 10 days what it needs before it releases the money.
The deductible is yours to pay
Texas law requires the policyholder to pay the deductible, and TDI says it is illegal in Texas for a contractor to offer to waive, rebate or absorb it. A company that offers to "take care of" your deductible is asking you to take part in something unlawful.
Public adjusters
A public adjuster works for you, not the insurer, and charges a fee. Texas requires public adjusters to be licensed by TDI. TDI says you have 72 hours after signing a public adjuster contract to cancel it, and that you can call its Help Line to check a license and any complaints.
You can reach the TDI Consumer Help Line at 800-252-3439. Its staff can help you find your insurance company, answer questions about how claims work, take a complaint, or check whether a public adjuster is licensed. TDI cannot tell you whether your particular claim should be paid, but it can tell you whether a company is following Texas rules.
A restoration company is a contractor, not your adjuster. It can document moisture readings and write an estimate, and many will share those with your insurer if you ask, but decisions about coverage stay between you and your insurance company. Before you sign anything, go through our checklist for vetting a restoration company, and if cost is the worry, the restoration cost guide explains what drives the estimate.
Where the free line fits
Water Damage Pro Dallas does not sell insurance, read policies, handle claims or bill insurers. If you have water in the house, the line connects you with an independent DFW restoration company that can come out, measure the damage and write an estimate you can share with your adjuster. How the job is paid, by you, by your insurer or both, is something you work out with the company and your insurance company.
Call and describe the leak or the flood in plain words. A local restoration company comes to look, records the damage and prices the work in writing, and you choose what to pass along to your adjuster.
About this line: Water Damage Pro Dallas is a free phone line, not a restoration or mold company. It answers your call and connects you with an independent local company, which inspects, quotes and does the work, and which you pay directly. Companies may pay a referral fee. Calling the line costs you nothing. See how a call is handled.