"Water damage and homeowners' policies can be a volatile issue in many ways," says Don Griffin of the National Association of Independent Insurers, a trade association for property-casualty insurers.

"Generally, the damage caused by water will be covered, but whatever causes the damage — say, a leaking dishwasher hose — may not be," Griffin says. So, although your insurer might pay to replace a carpet damaged by your dishwasher leak, you must pay to replace or repair the hose.

If a sudden, unforeseen problem such as a frozen pipe or hose leads to water damage, your homeowners insurance covers both repairs to the broken pipe and to your home and furnishings.

Here are several common water-damage scenarios and their insurance consequences.

Scenario No. 1: The temperature drops to 10 below zero, causing your water pipes to freeze and burst. Your floor is now covered in 6 inches of water.

Are you covered? Yes, you are covered for water damage from burst pipes, but most policies won't cover you if you've left the house unoccupied and without heat. If that's the case, your claim could be denied because you've failed to perform the necessary maintenance that would prevent the accident.

Scenario No. 2: Water leaks from your backyard pool, ruining your manicured lawn and flooding your basement.

Are you covered? The damages to your basement and your personal property in it are covered, but not the damage to your lawn.

Your lawn is a different story. Coverage for lawns is on a "named perils" basis, which means you are only covered for damages that arise from certain events. Swimming pool leakage is not one of them. The amount of coverage for lawns and plants is small, only up to $500. If your prize-wining orchid is worth more than $500, you may want to speak with your insurance company about special coverage.

Whether or not the damage to your pool is covered will depend on the cause of the leak. For example, a leak caused by a tree falling on the pool would be covered but a leak caused because the water in the pool froze would not. Read your insurance policy for the coverage details and ask your company or agent if you have questions.

Scenario No. 3: Your washing machine overflows, flooding the basement.

Are you covered? Yes, but again, the extent to which you are covered depends on your insurer's view of the problem: Did you fail to maintain the washer properly, or did sudden, unforeseen damage cause the flood?

"Most of the time, if an appliance breaks and water goes all over, insurance covers it. In the case of a washing machine, you might need to purchase replacement parts out of your own pocket because they were not maintained correctly, but the damage to your basement is covered," says Griffin.

Scenario No. 4: A sewer backs up, flooding your basement.

Are you covered? Probably not. Some home insurance policies automatically include coverage for sewer and drain backups, but most do not. Special endorsements are available, at added cost, for sewers and drains. Read your policy carefully to find out whether you have the endorsement.

Scenario No. 5: Water seeps from the ground into your basement, damaging your foundation and interior.

Are you covered? No. Seepage is considered a maintenance problem, not "sudden and accidental" damage, and is excluded from homeowners insurance coverage.

Scenario No. 6: During a heavy rainstorm, water leaks through your roof. The roof is damaged, as is furniture.

Are you covered? Somewhat. While you might not be reimbursed for roof repairs, because that's a house-maintenance issue, the water damage to your home is covered. The damage to your furniture is not covered, because rainwater leakage is not one of the "named perils" for which the contents of your house are covered.

If something more drastic leads to the roof leak (your neighbor's tree falls on the roof, for example), the damage to your roof, home and belongings is covered. (In the tree example, your policy reimburses you up to a certain amount, usually around $500, for the cost of removing the tree.)

Scenario No. 7: Your bathtub overflows.

Are you covered? Yes. You are even covered, if the bathtub overflowed because you forgot to turn off the faucet.

Scenario No. 8: A nearby lake or river overflows its banks, causing a flash flood in your living room.

Are you covered? No. Flood damage is not covered by homeowners insurance. You must purchase flood insurance from the federal government. You can purchase flood insurance, as long as your community participates in the National Flood Insurance Program.

When disaster strikes

If you find water damage in your home, don't panic. "Look out for how you report the loss to your insurance company," says Allan Sabel of Sabel & Associates, a Bridgeport, Connecticut-based adjusting firm. "What you say initially can affect the outcome of your claim. Many people believe their house is flooded because it's full of water — but it's not a 'flood' by the insurance definition."

This may seem like a minor distinction, but your insurer has a very narrow definition of flooding, which is excluded from homeowners coverage. To an insurance company, flooding means a "general or temporary condition of partial or complete inundation of normally dry land area from the overflow of inland or tidal waters, or surface waters from any source."

In other words, unless the water filling your living room came from a nearby lake, stream or river, the insurance company wont consider it a flood. "You just have to be careful," Sabel says. "Know exactly what is in your policy, what's covered, what's not covered, and report your claim accurately."