Water Damage Statistics

Water damage is one of the most common and costly reasons homeowners file insurance claims. Whether it’s caused by coastal flooding or a leaking pipe, unwanted water in your home can quickly lead to expensive repairs. In most cases, homeowners insurance covers water damage that results from sudden, accidental issues—like a burst pipe or overflowing appliance. However, standard insurance policies typically exclude gradual damage and flooding from external sources, which require separate coverage.

In this guide, we’ll break down key water damage statistics, explain what’s usually covered by a home insurance policy, and show you how to spot and prevent problems in your home before they get worse.

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Number of Annual Water Damage Claims

Homeowners are highly likely to experience water damage at some point in their lives. According to a 2025 report from the Insurance Information Institute (Triple-I), which is based on 2023 data, water damage and freezing accounted for 22.6% of all home insurance claims—down 3.2% from the previous year.

Water damage and freezing remain the second-most common causes of property damage claims annually, following wind and hail. The Triple-I data collected from 2019 through 2023 showed that one in every 67 insured homeowners filed a claim due to water damage or freezing each year, with an average claim amount of $15,400.

Flood Damage Statistics

Just 1 inch of water in the typical home can cause up to $25,000 worth of damage, according to the Federal Emergency Management Association (FEMA) and the National Flood Insurance Program (NFIP).

“FEMA’s estimate reflects the widespread damaging impacts that water can have on flooring, walls, insulation, furniture, and personal belongings,” said Michael Loik, Ph.D., professor of environmental studies at UC Santa Cruz. “Repair or replacement of these features often is quite costly. Water can damage drywall, warp floors, ruin electronics, and promote mold growth.”

Nationally, flooding costs Americans over $180 billion in damages annually. In 2024, Hurricane Helene caused catastrophic damage in the Southeast, with early estimates placing the cost at $53 billion. Around 90% of all natural disasters in the U.S. involve flooding, according to the NFIP.

“Most homes have at least some degree of flood risk, regardless of their location,” said Courtney Klosterman, a home insights expert at Hippo Insurance. “FEMA says even with low or moderate flood risk, your home is still five times more likely to flood than experience a fire over the next 30 years.”

Despite these risks, many homeowners remain uninsured. A 2024 Neptune Flood and University of South Florida survey found that 77% of respondents reported their perception of flood risk had increased, though many still lack flood coverage.

Climate Trends: Heavy Precipitation and Flood Risk

Flooding isn’t limited to coastal storms or overflowing rivers—it’s increasingly driven by extreme rainfall. Across the U.S., heavy downpours are becoming more frequent and intense, raising flood risks even in areas that previously faced little concern.

The Environmental Protection Agency (EPA) reports that the frequency and intensity of heavy rainfall events have risen sharply over the past century. The Northeast has seen a 55% increase in precipitation during heavy storms, while the Midwest and Southeast have also experienced substantial spikes. The heaviest days of rain and snowfall across much of North America are expected to produce 20%–30% more precipitation by the end of the century, raising the risk of flash floods and water damage, according to Berkeley Lab.

These changes are reshaping homeowner concerns and behavior. A 2024 LendingTree survey of nearly 2,000 U.S. homeowners found that 51% worry climate change-related hazards could affect their property, with this concern rising to 63% among millennials. Severe storms (24%), hurricanes (14%), and flooding (14%) were the top concerns.

In high-risk areas, 34% of homeowners are considering relocation, 17% have avoided buying a home due to climate concerns, and 38% have purchased additional insurance coverage, such as flood or wildfire insurance. Meanwhile, 70% expect climate change will raise their home insurance premiums.

These trends show how shifting climate patterns and heavier rainfall are increasing the long-term risk of flooding and water damage, making preparation and protection more important than ever.

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Types of Water Damage

Water damage falls into one of three categories, depending on the cause and severity of the issue.

“Clean water has a low to minimal contamination level and carries low health risks,” said Juneseok Lee, Ph.D., professor at Manhattan University. “Gray water has a moderate contamination level and carries mild to moderate health risks. Black water has a high contamination level and carries severe health risks.”

Clean Water

Damage that results from clean water falls into Category 1. For the purpose of water damage classification, water is considered clean if it is free of toxins and sewage. A leak in a water supply line or water damage resulting from melted snow would fall into this category. Homeowners can typically dry out most items affected by a Category 1 incident easily without any lasting damage.

Gray Water

Damage that results from “gray” or “dirty“ water falls into Category 2. Water is considered gray if it has been exposed to waste or chemical contaminants. Examples include bathwater and water from your dishwasher. Although these contaminants may or may not directly harm humans, gray water damage can cause issues later. Items affected by a Category 2 incident need to get thoroughly disinfected or replaced entirely.

Black Water

Damage that results from potentially toxic water falls into Category 3. If there is any chance that water might contain pathogens or toxins, it is considered black water. Examples include flood water, sewage, seawater, and even groundwater. A Category 3 incident requires swift and serious attention to mitigate health risks and permanent damage.

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What Does Water Damage Look Like?

Water damage is often immediately evident. A flash flood or overflowing toilet, for instance, is hard to miss. However, smaller issues can go undetected and cause damage over several weeks or months. Homeowners can watch for a few warning signs that indicate a hidden problem. Water damage can look like any of the following:

• Water stains: Even clean water can cause stains as it soaks through your walls, ceiling, or floor. Water stains typically appear as areas of beige, yellow, or brownish discoloration.
• Humidity: Some of the water leaking into your home will naturally get absorbed into the air, causing increased humidity. You might also notice more condensation or mugginess.
• Mold or mildew: If the issue persists long enough, mold or mildew can begin to grow in affected areas. Mold can begin growing on a damp surface within 24–48 hours, according to FEMA.
• Dripping: In the case of a hidden leak, you may hear a dripping sound with no visible source. A large or prolonged leak could also result in water dripping through your ceiling or light fixtures.
• Peeling paint: Excess humidity or water soaking through your walls can cause paint to peel or bubble. You might notice similar issues with wallpaper.
• Hairline cracks: Thin cracks in your home’s walls, ceiling, or foundation may be caused by harmless temperature fluctuations or the house settling. However, these cracks can sometimes signal serious water damage.

“Water damage to your home’s foundation can be tricky to identify,” said Matt Wojciechowski, a district service manager at Groundworks. “A home’s foundation is supposed to be clean and dry. If you find your foundation walls are constantly damp or wet, chances are water is seeping through.”

If your home has a hidden leak, you might also notice a higher-than-usual water bill or increased water usage. The average home leaks around 10,000 gallons of water every year, according to the EPA. Even small leaks can waste huge amounts of water—10% of households waste more than 90 gallons of water daily through minor leaks and drips. 

Your utility company might even reach out to suggest you look for a leaky pipe, dripping faucet, or perpetually running toilet if its records show constant water usage at your home. Fixing household water leaks and updating plumbing can save homeowners about 10% on their water bills. A home warranty with plumbing coverage can also help you save if unexpected break downs happen from use over time.

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Top Causes of Water Damage

Although flooding and storm damage are the most frightening causes of water damage, they are not the most common. The vast majority of water damage is more subtle, with a source closer to home. Here’s a list of a few common causes of water damage:

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How Insurance Handles Water Damage

In most cases, your homeowners insurance policy will cover damage that is considered sudden and accidental, such as a burst pipe, a leaking water heater, or an overflowing washing machine. When that happens, your insurer typically helps cover the cost of repairing the damage to your floors, walls, or personal belongings. But coverage may not include the cost to repair the broken pipe or appliance itself.

However, insurance typically does not cover everything. If the damage happens slowly over time, such as a hidden leak behind a wall, your insurer might consider it a maintenance issue rather than an accident. The same goes for flooding caused by storms, hurricanes, or rising water outside your home. For protection against those types of events, you will need separate flood insurance, which you can get through the NFIP or private insurers.

You can also supplement your homeowners insurance coverage with optional add-ons. Water backup coverage can help if your sump pump fails or a drain backs up. Equipment breakdown coverage can help replace damaged systems like your HVAC or water heater. It is worth checking your policy and talking with your insurance company so you know exactly what is covered and what is not before a problem arises.

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How To Prevent Water Damage

Water damage can quickly become expensive to repair, but early detection and prevention measures can make a huge difference. Here are a few things you can do to prevent water damage.

• Check hoses, pipes, and faucets regularly: Inspect the visible parts of your plumbing system for drips and leaks. Rust-colored water, small puddles of water, extra moisture, and noisy pipes can indicate an issue.
• Pay attention to toilets, sinks, and tubs: If you notice any issues with your toilet, call a plumber or run some do-it-yourself (DIY) diagnostics. For example, you can drop a little food coloring into your toilet tank and wait 15 minutes to see if any colored water makes its way into the bowl without you flushing it. If it does, your toilet may have a leak. You can also monitor your sinks, tubs, and showers for signs of a leak.
• Install a water-leak detector: Use a water-leak alarm to quickly catch leaks and an automatic shut-off system to minimize the damage.
• Monitor your water bill: A major change in your water bill could indicate an issue with your home’s plumbing or supply line. To confirm the presence of a leak, go two hours without using any water and read your water meter before and after this time period. If the number changes, you likely have a leak.
• Schedule regular water heater inspections: Have a plumber inspect your water heater regularly. You can also have an HVAC company inspect your air conditioner every spring. Identifying issues early can prevent the expense of replacing your water heater.
• Watch for signs of water damage: Keep an eye out for any signs of water damage, including those listed above.
• Protect pipes from freezing: Make sure the temperature inside your home stays above 50 degrees Fahrenheit (10 degrees Celsius), even when you are not home. This can help keep indoor pipes from freezing during cold weather. Wrap exposed pipes, such as those in your crawlspace or unfinished basement, with snap-on insulation. 
• Fix issues quickly: If your home does develop a leak or any issue that could cause water damage, address the problem quickly. Cut off the water and call a plumber as soon as possible.
• Clean your gutters regularly. Many experts recommend cleaning your gutters at least twice per year. Clogged gutters cannot drain properly. As the water backs up, it can seep under your roof and into your home or pool around your foundation and leak into your basement. You can also install gutter guards to keep out debris.

Klosterman also recommends more advanced protections for homeowners in high-risk areas. These include waterproofing basement walls, using tile instead of carpet, adding check valves to prevent backflow, sealing gaps around wiring, and grading your yard to direct water away from the foundation. In flood-prone zones, Klosterman notes that raising electrical sockets or even elevating the home itself is worth considering.

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Our Conclusion

A single incident of water damage can cause homeowners or insurance companies thousands of dollars. Fortunately, homeowners can take several steps to prevent or mitigate water damage. We recommend learning to recognize the signs of water damage and how to shut off your water in an emergency. You can also try to mitigate flood damage by investing in regular home maintenance, such as gutter cleaning and regular HVAC inspections. Pay attention to water damage warning signs and address small issues promptly before they grow into more expensive problems.

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FAQs About Water Damage

What is the biggest concern with water damage?

The biggest concerns about water damage range from structural damage to potential health risks. Flooding and water damage can weaken load-bearing materials, including your home’s structural supports. Water damage also facilitates the growth of mold and mildew, and standing water is a breeding ground for bacteria and viruses.

How much water causes damage?

Even small amounts of water can cause damage in your home. Water absorbs into floors, walls, furnishings, and more. If you leave the water damage sitting for too long, your home insurance company may not cover the cost of damages.

What is water damage restoration? 

Water damage restoration involves repairing water damage by removing water, dehumidifying, cleaning, and restoring the property to its original condition. It can take a few weeks depending on the severity of the damage. 

What’s the difference between water damage and flood damage? 

Water damage generally refers to incidents inside the home, like leaks or burst pipes, while flood damage involves rising water from outside sources such as heavy rain, storm surge, or overflowing rivers. Homeowners insurance usually treats these separately.

Does homeowners insurance cover water damage? 

Insurance typically covers sudden and accidental water damage, such as a burst pipe, but often excludes gradual leaks or flood damage without a separate flood insurance policy. We recommend reviewing your policy to know your exact coverage.