Winter freezes and home insurance in Texas

Burst pipes: usually covered, with conditions

TDI says many policies pay for damage to your house caused by a frozen pipe that burst, though there may be limitations. The coverage to ask about is sudden and accidental water damage. Flood insurance doesn't cover burst pipes.

The key condition: TDI warns that home and renters policies might not pay for frozen pipe damage if you didn't take steps to protect the pipes, such as keeping the heat on. Many policies cover freezing losses only if you took reasonable care to maintain heat, or shut off the water and drained the pipes.

What TDI told insurers after Winter Storm Uri

In Commissioner's Bulletin B-0010-21 (March 2021), TDI told insurers it expected them to consider the severity of the February 11 to 19, 2021, event when deciding whether policyholders took reasonable care. It listed factors outside people's control: long, repeated power outages; being told outages would be short; renters with no access to water shutoffs; conflicting advice; and icy conditions that made reaching the water main dangerous.

The bulletin also reminded insurers that Texas law prohibits unfair claim settlement practices. The takeaway for your next freeze claim: document what you did and why, including outage times and any official instructions, because reasonableness is judged on your circumstances.

Gradual leaks, slab leaks and foundations

TDI says most home policies don't cover damage from continuous or repeated leaks or seepage, or mold from those leaks. They usually cover mold only when it grows on something damaged by a covered loss. TDI also notes you usually must report hidden water damage within days of first seeing it.

Foundation and slab damage is typically excluded from the base policy. TDI lists damage to foundations or slabs among the common endorsements you can add, so if your plumbing runs under a slab, ask whether your policy has it.

Power outages, food spoilage and hotels

TDI says most policies pay up to $500 (some pay more) for food that spoils when the power fails because of something your policy covers, often with no deductible. Take photos and keep a list.

Hotel costs are different. TDI says policies generally pay additional living expenses only when covered damage makes your home unlivable. Leaving because you had no power or water, with no damage to the house, probably isn't covered.

Weight of ice and snow is covered on many policies when it damages the house; fences and patios may not be covered unless the house collapses onto them.

Before the next freeze

TDI's checklist, which also helps show reasonable care if you do file:

• Wrap pipes in unheated areas, including attics and a garage washer hookup.
• Disconnect hoses, wrap outdoor faucets and drain the sprinkler system.
• If you leave home, turn off water at the main shutoff and leave the heat on.
• During the freeze, open sink cabinets and drip hot and cold taps, following local water-use instructions.
• Know where your shutoff valve is; if pipes freeze, close it before they thaw.

If a pipe bursts

Stop the water at the main valve, remove standing water and start drying right away, since TDI notes mold can start growing within a day. Photograph the damage before cleanup, keep damaged items until the adjuster sees them, and save receipts for drying services and temporary repairs. Then file promptly. Texas claim deadlines, including the 15-day acknowledgment and 15-business-day decision rule, apply once the insurer has notice.

Document reasonable care as it happens

Because many freeze claims turn on whether you took reasonable steps, a few notes during the storm can matter later. TDI's 2021 bulletin said reasonableness must be judged on the unique circumstances of each claim, including outages and access to shutoff valves.

• Note when the power went out and came back, and save utility outage alerts.
• Photograph thermostat settings, dripping faucets and open cabinets.
• Save any city or utility instructions you followed, such as limits on dripping.
• Renters: write down if you had no access to the water shutoff, and tell the landlord in writing.

Questions to ask your agent

• Does my policy have a heat or freezing condition, and what does it require if I travel?
• Is there a separate limit or deductible for water damage?
• Do I have foundation or slab coverage, and sewer and drain backup?
• What's my food spoilage limit?
• For renters: does my policy cover my belongings if the landlord's pipes burst?