Which water loss situation is covered by a homeowner's policy?

The correct situation covered by a homeowner's policy is when a pipe bursts from freezing while the insured was on vacation. Homeowner's insurance policies typically cover sudden and accidental water damage, which includes losses due to the bursting of pipes. If a pipe freezes and subsequently breaks, releasing water into the home, this is considered a covered peril under most standard homeowner’s insurance policies.

In contrast, other situations such as leaving the bathtub faucet running typically fall under negligence or lack of maintenance, which are generally not covered. Water seeping through basement walls due to gradual water intrusion represents a maintenance issue rather than a covered sudden event. Lastly, sewer backup situations are often excluded from standard policies unless the homeowner has specifically added that coverage through an endorsement.