Water Damage Clause


DEFINITION of 'Water Damage Clause'

A clause in a property-casualty insurance contract. A water damage clause states that the insured is covered for water damage that occurs for specific reasons, such as frozen pipes or sewer backup. Water damage clauses are therefore usually included in most homeowners and renters' policies.

BREAKING DOWN 'Water Damage Clause'

Water damage can be quite expensive to fix. For this reason, most homeowners and renters are willing to pay a higher price for a policy that includes this coverage. However, water damage clauses usually exclude damage from floods, for which a separate rider or policy must be purchased.

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    An all-perils renters insurance policy does cover water damage, less the deductible, to personal property if the damage is ... Read Full Answer >>
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    Renters insurance provides two main forms of coverage – liability and contents insurance – and they are offered together ... Read Full Answer >>
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