Are Gas Leaks Covered By My Homeowners Insurance?

Popular Questions:

Are gas leaks covered under standard homeowners insurance policies?
When and how does homeowners insurance cover gas leaks?
How much do I have to pay if homeowners insurance does cover my gas leak?
If homeowners insurance doesn’t cover gas leaks, what will?
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Are gas leaks covered under standard homeowners insurance policies?

As a new homeowner, I’m curious about what all is covered under my insurance. We have both a gas-powered furnace and a gas stove. Are gas leaks covered under standard homeowners insurance policies?

Well, that’s tricky. It depends. In certain scenarios, yes, such as if the gas leak is severe enough to cause an explosion. Explosions are a covered peril under standard homeowners policies. However, other scenarios won’t be covered, such as if the gas leak occurs due to an aging appliance, and doesn’t lead to something catastrophic like an explosion.

When and how does homeowners insurance cover gas leaks?

A standard homeowners insurance policy provides coverage for explosions caused by gas leaks. It may also provide coverage in the event a leak occurs due to a covered natural disaster (e.g., windstorm, hail, fire, blizzard, or lightning) causing damage to the appliance or its gas line. What’s more important to consider, probably, is everything that homeowners insurance won't cover when it comes to gas leaks.

Homeowners insurance will not cover gas leaks in the following scenarios:

• A slow and steady gas leak causes damage to surrounding appliances or other fixtures of the home.
• The gas leak is caused by an aging appliance that you’ve failed to keep up with routine maintenance.
• The gas leak occurs due to a connection issue in an appliance that was improperly installed.
• The gas leak occurs due to damage to an appliance struck by a natural disaster that is not covered (e.g., flood, earthquake, or mudslide).

When getting a gas-powered appliance installed, it’s important to get it done by a professional you can trust to have the best chance to minimize future disasters. Keep up with the routine maintenance, too. You as the homeowner are considered responsible for the maintaining the safe working order of appliances in your home.

How much do I still have to pay after my homeowners insurance?

If the gas leak occurs due to a covered cause or creates an explosion, you’ll be responsible for paying your policy’s deductible and any amount that exceeds the limit in that category of coverage. Coverage limits will vary depending on your specific homeowners insurance policy. You may also choose to purchase more coverage to increase these limits, if you wish.

In the event of an explosion, you may want to have purchased extra umbrella insurance to fund repair of the remainder of the damage beyond what your homeowners policy will cover. If your home explodes, it’s not unlikely that it will cause one or both of your neighbors’ homes, and potentially even the home across the street to explode along with it, or at least suffer some damage.

A standard homeowners policy typically comes with a $300,000 limit on liability coverage. If your home explodes and causes damage to a neighbor’s home, you’ll be held responsible and are likely to be sued. Umbrella coverage could be necessary to cover legal fees that exceed your homeowners policy’s liability limit.

If homeowners insurance doesn’t cover gas leaks, what will?

Sometimes appliances come with warranties or even extended warranties that may cover gas leaks. These warranties don’t always cover all causes of leaks, but most likely will reimburse you for repair or replacement costs if the leak occurs due to a bad installation job. Once you’ve had a gas-powered appliance professionally installed, it’s your responsibility to do the routine maintenance on it, to avoid potential disasters you’d have to pay out of pocket for down the line.