"Is it covered?" is usually the first question after water damage, and the honest answer is that it depends on where the water came from. The Maryland Insurance Administration (MIA) says homeowners policies do not cover all types of water damage, and that a policy's terms determine what is covered and how much. This guide summarizes what the MIA says, and what to ask your insurer. It's general information, not insurance or legal advice, and your policy is what counts. For the wider picture of what happens after a loss, see water damage restoration in Annapolis, MD.
The short answer by situation
| Situation | What the MIA says |
|---|---|
| A burst pipe floods floors | The water damage is generally covered, but usually not the cost of repairing or replacing the pipe. |
| Flooding | Homeowners policies generally do not cover it. Damage from a flood is not paid under a homeowners policy, so you would need a separate flood policy. |
| Seepage through a foundation wall or floor | Not covered by a flood policy, and generally not by homeowners coverage, since it is treated as a maintenance issue. |
| Sewer or drain backup, or sump pump overflow | Homeowners coverage may apply only if you bought a water or sewer backup endorsement. With it, most policies pay for damage from the backup but not for repairing the pipe or drain. |
What counts as a flood
The MIA uses the National Flood Insurance Program's definition: the inundation of two or more acres of normally dry land, or of two or more properties, one of which is yours, by overflow of inland or tidal waters, rapid surface runoff, mudflow or certain shoreline land collapse. That definition matters in Annapolis, where tidal water is part of the picture. A creek that overflows or a tidal surge across two or more properties fits it, while a pipe that bursts inside your home does not.
The sewer backup endorsement
Many people only learn about this endorsement after a backup. The MIA says Maryland law requires insurers to offer water and sewer backup coverage and that most offer several limit options. It is an add-on, so it's worth checking whether your policy has it before the next heavy rain. It pays for damage from the backed-up water or sewage, not for fixing the line. See sewage backup cleanup and our guide to what to do after a sewage backup.
Flood insurance and the waiting period
Flood coverage comes from a separate policy, usually through the National Flood Insurance Program or a private insurer. The NFIP says a 30-day waiting period must pass before most flood policies become active, with a few exceptions, such as coverage bought alongside a mortgage. It also notes that homeowners and renters insurance do not typically cover flood damage. In practical terms, you can't buy flood coverage once a storm is in the forecast. The City of Annapolis makes the same point on its flooding page, advising residents to consider flood insurance and noting that flood losses are not covered under homeowners' policies.
What to do before and after you file
- Read your policy now. Look for water backup, sump pump, flood and seepage language, and the deductibles.
- Call early. Tell your insurer what happened and ask what documentation it needs. Many policies expect you to take reasonable steps to prevent further damage, such as stopping the water and starting drying.
- Document first. Photographs, videos and a list of damaged items support a claim. See what to do after water damage.
- Keep records from the contractor. Moisture readings, equipment logs and itemized invoices help show what was done and why.
- Ask before you discard. Keep damaged items until the adjuster has seen them, if you safely can.
Questions to ask your insurer
- What caused this loss, in your view, and which part of my policy applies?
- Do I have a water or sewer backup endorsement, and what is its limit?
- Is emergency drying covered, and what do you need from the contractor?
- Is the pipe or fixture repair covered, or only the resulting damage?
- What is my deductible for this type of loss?
- Do I need a separate flood policy for this property?
Insurance and the cost of restoration
What your policy covers also affects how you compare estimates. If drying is covered but rebuilding is a dispute, or the reverse, the scope of the contractor's estimate matters. Our cost guide covers how to read an estimate, and our guide to hiring a water damage contractor in Maryland covers what to ask before you sign.