Does Homeowners Insurance Cover Well Failure?

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Water well (Photo: @Raimonds_Kalva via Twenty20)
Over 13 million households in the U.S. still rely on wells to provide them with fresh water to satisfy their daily needs. Though well failure is rare, it can leave your entire household without access to water. And if that happens, will your homeowners insurance policy step in to help? Here’s what you should know.

Does homeowners insurance provide protection against well failure?

Most homeowners insurance policies will provide you with coverage for well damage or failure if it occurs as a result of one of the listed perils in your policy, such as rain/snow, fire/lighting, or windstorms.
If you incur well damage as a result of any coverage exceptions listed within your policy, typically earthquakes and/or flooding, your insurance will not be held responsible for the cost of repair.
Additionally, your insurance provider will not reimburse you for the cost of damages if they occur due to neglect, meaning the issue results from your direct actions or lack thereof, or if they are a result of general wear and tear, a situation in which tenants are always held liable for repair costs.
Contact your insurance provider with any questions you have about your policy to know your coverage options and when to file a claim.

Ways to reinforce your protection against well failure

You could also consider taking out flood insurance and earthquake insurance add-ons to protect yourself against these destructive natural disasters. You might also consider changing your coverage plan and taking out a home warranty to cover the cost of damages made to specific areas within your home. These policies can be expensive, and will certainly increase your monthly insurance bill, however.
Another option to consider is purchasing equipment breakdown coverage, which will not only cover well damage and failure but also provide comprehensive coverage for damages that occur to the mechanical appliances and systems within your home, including:
  • Backup generators
  • Central AC systems and vacuums
  • Electric power panels
  • Elevators and chair lifts
  • Fans and other ventilation equipment
  • Household heaters (including furnaces, heat pumps, heaters, and solar heaters)
  • Spa and pool equipment
  • Water heaters and boilers
While prices will vary by plan and provider, equipment breakdown coverage typically costs an additional $25 to $50 each year, which is substantially less than you will be paying to repair or replace your damaged equipment out-of-pocket.