Last Updated February 2026
- Renters insurance can help cover water damage from “sudden and accidental” issues that happen inside a basement, such as a burst pipe or a leaky hot water heater.
- Coverage can help pay to repair or replace personal property damaged by water and for additional living expenses if the home is uninhabitable.
- Basement flooding caused by heavy rain, hurricanes or overflowing rivers typically is not covered by renters insurance. Separate flood insurance for renters may be available through the National Flood Insurance Program (NFIP).
- Coverage and options can vary by insurer and by state, so it’s important to review the specific terms of your policy.
Renters insurance can help pay to repair or replace personal belongings damaged by basement flooding if the water is caused by a sudden or accidental issue inside the building. For example, if a utility sink or water line pipe freezes and bursts or an appliance hose disconnects and the basement floods, renters insurance may cover losses. Water damage or “flooding” due to weather or a sewer backup typically are not covered by renters insurance unless you’ve added those specific coverages to your policy.
Renters insurance policies typically include:
- Personal property coverage to help repair or replace your belongings.
- Liability coverage to help with costs if you’re found legally responsible for injuries to others or damage to their property.
- Additional living expenses (ALE) coverage to help with temporary housing costs (also referred to as loss of use coverage).
While renters insurance can help cover damage to your belongings, damage to the building itself (the basement’s walls, floors or foundation) is typically covered by the landlord’s property policy.
Water damage is among the most common and costliest affecting U.S. homes, according to the Insurance Information Institute. Understanding your coverage limits and the value of your possessions can help you decide if you need to update your policy. In some cases, flood insurance or other optional coverages may be added.
Water damage: What’s covered?
Determining when water damage is covered by renters insurance and when it is covered by flood insurance depends on the cause or source of the flooding.
How is water damage different from flood damage?
From an insurance perspective, water damage typically occurs from issues inside a home or building, like burst pipes or leaky water heaters, while flood damage happens when water flows in from outside sources, such as heavy rain or an overflowing river.
Renters insurance can help cover losses due to sudden and accidental damage from water that originates inside the building. For example:
- A pipe bursts and destroys rugs, furniture or electronics.
- A washing machine malfunctions and overflows, ruining belongings stored in a basement.
- A hot water heater leaks and damages clothing, outdoor equipment or furniture.
Flood damage from water that comes from outside of the building — from an overflowing river or other weather event — can be covered by a separate flood insurance policy. Flood insurance is available through the NFIP Write Your Own (WYO) Program.
Water damage from a sewer backup or sump pump failure is not covered by a standard renters insurance policy, but water backup coverage can be added to your policy.
Basement water damage: covered or not?
| Type of damage or situation | Typically covered by renters insurance | Not covered by renters insurance | How to get coverage |
|---|---|---|---|
| Burst pipe or sudden plumbing leak | ✔ Yes — if the leak is sudden and accidental. | ✖ No — if the leak results from neglected maintenance or wear and tear. | Standard renters insurance covers sudden, accidental leaks. |
| Overflow from sink, tub or toilet (accidental) | ✔ Yes — if the overflow happens suddenly and causes damage to personal property. | ✖ No — if caused by poor maintenance or intentional acts. | Standard renters insurance. |
| Water seeping through foundation or basement walls | ✖ No — considered flooding or gradual seepage, not sudden accidental damage. | ✖ Not covered under standard renters insurance. | Separate flood insurance through FEMA’s National Flood Insurance Program (NFIP) or a private flood policy. |
| Sewer backup or sump pump overflow | ⚠ Not automatically — usually requires optional add-on coverage. | ✖ No — without optional coverage, these events are excluded. | Add water backup or sump pump overflow coverage to your renters policy. |
| Flooding from heavy rain, storm surge or overflowing river | ✖ No — considered a flood, which is excluded from renters policies. | ✖ Not covered. | Separate flood insurance policy (NFIP or private provider). |
| Mold or mildew from a covered water event | ✔ Sometimes — if mold develops as a result of a covered water loss and you acted promptly. | ✖ Not covered if mold is due to long-term leaks, moisture or humidity. | Ask your insurer about limited mold remediation coverage. |
Basement water damage: covered or not?
-
Type of damage or situation: Burst pipe or sudden plumbing leak
Typically covered by renters insurance: ✓ Yes — if the leak is sudden and accidental.
Not covered by renters insurance: ✗ No — if the leak results from neglected maintenance or wear and tear.
How to get coverage: Standard renters insurance covers sudden, accidental leaks.
-
Type of damage or situation: Overflow from sink, tub or toilet (accidental)
Typically covered by renters insurance: ✓ Yes — if the overflow happens suddenly and causes damage to personal property.
Not covered by renters insurance: ✗ No — if caused by poor maintenance or intentional acts.
How to get coverage: Standard renters insurance.
-
Type of damage or situation: Water seeping through foundation or basement walls
Typically covered by renters insurance: ✗ No — considered flooding or gradual seepage, not sudden accidental damage.
Not covered by renters insurance: ✗ Not covered under standard renters insurance.
How to get coverage: Separate flood insurance through FEMA’s National Flood Insurance Program (NFIP) or a private flood policy.
-
Type of damage or situation: Sewer backup or sump pump overflow
Typically covered by renters insurance: ⚠ Not automatically — usually requires optional add-on coverage.
Not covered by renters insurance: ✗ No — Without optional coverage, these events are excluded.
How to get coverage: Add water backup or sump pump overflow coverage to your renters policy.
-
Type of damage or situation: Flooding from heavy rain, storm surge or overflowing river
Typically covered by renters insurance: ✗ No — considered a flood, which is excluded from renters policies.
Not covered by renters insurance: ✗ Not covered.
How to get coverage: Separate flood insurance policy (NFIP or private provider).
-
Type of damage or situation: Mold or mildew from a covered water event
Typically covered by renters insurance: ✓ Sometimes — if mold develops as a result of a covered water loss and you acted promptly.
Not covered by renters insurance: ✗ Not covered if mold is due to long-term leaks, moisture or humidity.
How to get coverage: Ask your insurer about limited mold remediation coverage.
Additional coverage options for renters
A standard renters policy may not include all of the coverage you want. Additional flood insurance or a sewer backup policy can help you protect your belongings. A Farmers® agent can walk you through add-on coverage options.
How to assess your needs
Consider risk factors for your situation:
- Weather: Is your home in a rainy area or near a river, creek or coastline that floods?
- Elevation: Do you live on a lower level or at the bottom of a hill or valley?
- Age of the rental unit: Is the home’s plumbing or sewer system old?
- Prior history: Has the building or neighborhood experienced flooding before?
- Power outages: Do you have frequent power outages that affect the power source for your sump pump?
- Storage: Do you store low- or high-value items in the basement?
Frequently asked questions about water damage
Can renters be held liable for basement flooding?
If water damage in a basement happens because of something you did, such as leaving a utility sink faucet running or your bathtub overflows, you could be held responsible for damage to the building or another person’s property. The personal liability coverage in a renters policy may help with covered costs, up to your policy limits.
If the water comes from an issue with the building, such as a foundation crack or a city sewer main overflowing into the basement, liability may rest with the landlord, a utility or another party, depending on the specific circumstances.What steps should I take if my basement floods?
- Stop the leak if possible, to prevent more damage.
- Move belongings out of wet areas and use towels or buckets to contain leaks.
- Take photos and videos of affected areas and belongings.
- Notify your landlord immediately, as they may be responsible for fixing the building’s plumbing or structural issues.
- Report the damage to your insurance company to start the claims process.
- Save all receipts and records for temporary repairs, cleanup supplies and extra living expenses.
How do I file a claim for water damage in a rental property?
- Online, through the Farmers claim portal
- Call the Farmers claims center at 800-435-7764
- Contact your Farmers agent
A claims representative typically will ask for:
- Your policy number
- The date and time the water damage happened and the cause of the damage
- A list of areas in the unit that were affected
- A list of damaged or destroyed items, with estimated ages and values
- Photos or videos of the damage
- Receipts or other proof of purchase for higher-value items
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.
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