Water Damage Statistics

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Water damage consistently ranks among the most common causes of home insurance claims. Anything from coastal flooding to corroded pipes can leave water in places it doesn’t belong, and the longer that water lingers, the costlier the damage will be to fix.

Homeowners insurance covers many types of water damage. However, for your home insurance to kick in, the damage must be caused by a sudden and accidental issue inside your home, such as a burst pipe. Flooding and gradual damage are typically excluded. In either case, it’s important to understand the signs and sources of water damage before it affects your home. We’ll cover the latest water damage statistics, plus how to identify and prevent this costly issue.

Number of Annual Water Damage Claims

Homeowners are highly likely to experience water damage at some point in their lives. According to the Insurance Information Institute (III), water damage and freezing accounted for 27.6% of claims in 2022, up from 2021 by 4%.

Flood Damage Statistics

Just 1 inch of water in the typical home can cause up to $25,000 worth of damage, according to FEMA and the National Flood Insurance Program. “FEMA’s estimate reflects the widespread damaging impacts that water can have on flooring, walls, insulation, furniture, and personal belongings. Repair or replacement of these features often is quite costly. Water can damage drywall, warp floors, ruin electronics, and promote mold growth,” says Michael Loik, Ph.D., professor of environmental studies at UC Santa Cruz.

Nationally, flooding costs Americans over $180 billion in damages annually. Just this year Hurricane Helene caused catastrophic damage in the southeast, with initial damage reports at $53 billion. 

“Most homes have at least some degree of flood risk, regardless of their location,” says Courtney Klosterman, home insights expert at Hippo Insurance. “The Federal Emergency Management Association (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.” However, note that not all homeowners insurance policies cover flood damage. III statistics indicate that 22% of homeowners reported that they are at risk of flood in 2023.

FloodDefenders, a nonpartisan nonprofit organization that advocates for local flood prevention measures, has compiled statistics on the prevalence and cost of flooding in the United States.

• 99% of U.S. counties have been impacted by a flood event between 1996 and 2019. 
• Flooding has cost taxpayers 1 trillion dollars since 1980 and is responsible for two-thirds of the costs of natural disaster damage. 
• There has been a 70% increase in heavy downpours each year in the Eastern United States. 

FEMA flood plains are out of date, with 6 million Americans unknowingly in a flood plain.

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,” says 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. Most items affected by a Category 1 incident can be easily dried out 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 are bathwater and water from your dishwasher. Although these contaminants may or may not be directly harmful to humans, gray water damage can cause issues later. Items affected by a Category 2 incident need to be 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.

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. Be on the lookout for 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 be 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. According to the Federal Emergency Management Agency (FEMA), mold can begin growing on a damp surface within 24–48 hours.
• 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, they can sometimes be a sign of serious water damage.

“Water damage to your home’s foundation can be tricky to identify,” says Matt Wojciechowski, 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. According to the Environmental Protection Agency (EPA), the average home leaks around 10,000 gallons of water every year. 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 that you look for a leaky pipe, dripping faucet, or perpetually running toilet if their 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 will also help you save.

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 are a few common causes of water damage:

How To Prevent Water Damage

Water damage can be 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 could all indicate an issue.
• Pay attention to toilets, sinks, and tubs. If you notice any issues with your toilet, call a plumber or run some DIY diagnostics. For instance, 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. It’s also wise to 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 will 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. Consider getting a home warranty with roof coverage to help fix any issues.
• Clean your gutters regularly. Many experts recommend cleaning your gutters at least twice per year. You might also install gutter guards to keep out debris. 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.

Klosterman also recommends several protective measures: “Clean your drains and gutters. Less debris gathers in clean drains, preventing water from backing up. Add waterproofing insulation and drywall to your basement. Install a check valve…to prevent backflow in your pipes. Fill any gaps around your windows and doors with caulking. Check for holes and gaps around any wires and pipes. Use tile instead of carpet for your floors. Direct your gutter runoff away from your house. Direct your gutter runoff away from your house. Add extra space between your mulch and siding. Raise all of your electrical sockets. Tilt your lawn away from your house and add rainwater pools near your home. Consider putting your home on stilts.”

Expert Insights and Tips

Michael Loik, Ph.D.

Professor

UC Santa Cruz

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Why do you think that water damage is an extremely common occurrence for homeowners?

Homeowners experience water damage primarily because of weather conditions and maintenance needs. Water damage can result from heavy weather, such as rainstorms, snowmelt, and flooding. Water damage can also result from deferred maintenance, aging infrastructure, plumbing failures, roofing problems, and poor drainage around foundations. Clogged gutters, cracked foundations, or neglected maintenance can allow water to seep in and cause problems. Neglect, seasonal events (e.g., freezing pipes or high humidity), and malfunctioning appliances or HVAC systems can also allow water entry that leads to structural damage. Failure to notice early signs, such as leaks or damp spots, can escalate into severe damage. Preventive maintenance and timely repairs are key to reducing the risk of water damage.

FEMA estimates that just 1 inch of water in the typical home can cost up to $25,000. How is this possible?

FEMA’s estimate reflects the widespread damaging impacts that water can have on flooring, walls, insulation, furniture, and personal belongings. Repair or replacement of these features often is quite costly. Water can damage drywall, warp floors, ruin electronics, and promote mold growth. Molds in particular can be very problematic because of the potential health problems that can result from breathing in spores. Molds can also release chemicals that further damage materials, which require professional attention. Water also damages electrical, HVAC, and plumbing systems, requiring additional repairs. Labor-intensive cleanup, water extraction, and drying further increase costs, while prolonged exposure may cause structural issues like foundation or subfloor damage. If the home becomes temporarily uninhabitable, relocation expenses add to the financial burden of repairs.

How can homeowners check if they’re in a flood plain?

Homeowners can determine if they are in a flood plain by clicking on FEMA’s Flood Map Service Center. Insurance agents and flood insurance rate maps (FIRMs) can also provide insights into flood zones. Online tools like FloodFactor or county GIS mapping systems may offer additional details. For precise evaluation, homeowners can hire a surveyor to obtain a flood elevation certificate, which assesses their property’s elevation relative to flood levels.

Michael Loik, Ph.D., is a professor in the environmental studies department at UC Santa Cruz. His expertise includes water, hydrology, and climate change, among others. Loik is also Chair of UCSC Greenhouses, which are the core plant support facilities for the instructional and research programs in the Departments of Ecology and Evolutionary Biology, Molecular, Cellular and Developmental Biology, and Environmental Studies.

Juneseok Lee, Ph.D.

Professor

Manhattan University

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How can homeowners check if they’re in a flood plain?

Homeowners can go to FEMA map service (https://www.fema.gov/flood-maps) and check their zip code or specific locations. Please check whether they are within the special flood hazard areas. For example, some locations with blue colors show the hazard zones. The easier way is to consult with local authorities such as the city planning department. They may have more detailed floodplain maps (e.g., geographic information systems) with flooding histories for certain communities. In a similar vein, realtors or insurance companies may have detailed flooding histories as well. There seems to be risk data for every property in the U.S. (such as https://firststreet.org/?utm_source=floodfactor&from=riskfactor.com), but I have not used it before. 

FEMA estimates that just 1 inch of water in the typical home can cost up to $25,000. How is this possible?

Briefly, the water damage cost in homes include, but are not limited to, drywall, mold remediations, possibly electrical repairs/furniture damage costs, other cleanups. This could add up to $25K, I think. In addition, flooding can lead to increased cases of diseases such as asthma and other chronic conditions due to poor housing conditions as well as water conditions. Also, there may be long-term psychological effects, including stress, anxiety, depression, and other mental health disorders. This may be due to relocation and financial constraints. Flooding can decrease property values due to historical flooding. It’s also noted that poor housing conditions such as inadequate roofing and structural issues increase the risk of flooding as well as their damage/impacts. Especially socioeconomically vulnerable households may face water access challenges severely.

Why do you think that water damage is an extremely common occurrence for homeowners?

Homes have plumbing systems that can fail and do damages to the properties. This includes leaking pipes, faulty water heaters, washing machines, service lines, etc. This is more problematic for houses with old and deteriorating plumbing systems/roofs/waterproofing systems. In addition, heavy rainfall and hurricanes can overwhelm stormwater drainage systems and let the water enter the house. Broken roofs or damaged walls can allow water to seep during storms.

What steps can homeowners take to protect their homes against flooding/water damage?

First, inspection and maintenance of pipe leaks, roofs, walls, are important. Also, proper drainage systems are of importance. Emergency preparedness can reduce the risk of water damage. It’s also important to consider having flood insurance programs.

Are there differences in types of water damage?

Clean water has a low to minimal contamination level and carries low health risks. The water sources for clean water damage are typically plumbing failure, leaks, and breaks. Gray water has a moderate contamination level and carries mild to moderate health risks. The water sources for gray water damage are typically washing machines, dishwasher overflow, toilet overflows without feces, and sump pump failures. Black water has a high contamination level and carries severe health risks. The water sources for black water damage are typically sewage backups and toilet overflows containing feces and surface waters containing bacteria or chemicals.

Juneseok Lee, Ph.D., specializes in drinking water systems and their crucial infrastructure, including water distribution and building water systems. His primary mission is to ensure the provision of clean, healthy, and drinkable water through reliable, resilient, and sustainable infrastructure systems. His notable research has garnered substantial support from prestigious organizations such as the National Science Foundation, the U.S. Environmental Protection Agency, the California Water Service Company, and Hewlett-Packard.

Courtney Klosterman

Home Insights Expert

Hippo Insurance

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Read bio

Why do you think that water damage is an extremely common occurrence for homeowners?

Most homes have at least some degree of flood risk, regardless of their location. The Federal Emergency Management Association (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.

FEMA estimates that just 1 inch of water in the typical home can cost up to $25,000. How is this possible?

Most insurance companies don’t include flood protection in a standard insurance policy; it’s usually offered as separate coverage, an insurance rider. Sometimes, it’s even required. For example, flood insurance may be required regardless of your flood zone if you have a federally-insured mortgage. Your home insurance provider should partner with you to walk you through your coverage options, explain flood insurance riders, and help you add it to your policy if you need to.

What steps can homeowners take to protect their homes against flooding/water damage?

Here are just some of the most effective ways to make your home more flood and weather-resistant:

Clean your drains and gutters. Less debris gathers in clean drains, preventing water from backing up.

Add waterproofing insulation and drywall to your basement.

Install a check valve—a device that only allows the flow of liquids in one direction to prevent backflow in your pipes.

Fill any gaps around your windows and doors with caulking.

Check for holes and gaps around any wires and pipes to prevent water from seeping into these spaces.

Use tile instead of carpet for your floors. The right tile can be resistant to flooding, mold and/or mildew. It is also much easier to keep clean.

Direct your gutter runoff away from your house. Changing the direction ensures water won’t pool in the corners of your property.

Add extra space between your mulch and siding. If there’s additional space between your mulch and siding, your home can completely dry after a storm or heavy rain.

Raise all of your electrical sockets. Sockets, circuit breakers, and outlets should be at least a foot above the ground to avoid water during floods.

Tilt your lawn away from your house and add rainwater pools near your home. The water can run toward the street when the lawn is tilted away from your home, saving you the headache of water saturating your foundation.

Consider putting your home on stilts. Although expensive if done retroactively, elevating your home gives it an additional layer of protection from water damage.

What does water damage look like?

Flood damage can show up in many different ways, but here are some of the most common signs of flooding:

Mold and mildew: According to FEMA, mold and mildew can start to form on damp surfaces within 24 to 48 hours. As soon as your home is deemed safe, start drying out your home and personal items.

Damage to your appliances: Your air conditioning system, water heater, refrigerator, and ventilation systems are all vulnerable to water damage. If you notice they’re wet, unplug them and dry them out immediately. Then make sure you hire a professional to inspect them before attempting to use them again.

Structural damage: This can appear as foundation and roof cracks or buckling in the floors (there may be water beneath it).

Electrical damage: Take a look wherever your home runs electricity to see if there are any frayed or fractured electrical wires. This includes:

Lights

Heaters

Circuit panels

Fuse boxes

Switches

Outlet receptacles

Circuit boards

Air conditioners

Furnaces

Boilers

How can homeowners check if they’re in a flood plain?

Flood risk changes over time. That’s why the National Flood Insurance Program and FEMA work with communities across the country to review flood zones on an ongoing basis. What’s the best way for you to keep up as a homeowner? The first step is to check your home’s flood risk now, and again every five years, using FEMA’s Flood Map Service Center (https://msc.fema.gov/portal/search#searchresultsanchor). Before you find yourself in a position where you need to consider how to keep floodwater out of your house, check with FEMA to find out if the location of your home is a high-risk area for flooding. Once you have that information, it’s a great idea to check your homeowners insurance to see what perils your policy covers. If it doesn’t cover flood damage, consider adding it to your coverage, especially if your home is in a flood zone.

Courtney Klosterman is a home insights expert at Hippo, the home insurance company focused on proactive home protection.

Our Conclusion

A single incident of water damage can cause homeowners or insurance companies thousands of dollars. Of the 5.8% of insured homes that filed a claim from 2018 to 2022, an average of about 25% of those experienced a loss related to water damage or freezing. According to III statistics, only damage from wind and hail is more likely.

Fortunately, homeowners can take several steps to prevent or mitigate water damage. We recommend learning what water damage looks like and how to turn off your water in an emergency. Then, invest in regular home maintenance, including 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.

FAQ About Water Damage Statistics

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