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.

RELATED TERMS
  1. Water Exclusion Clause

    A restriction in a homeowner's or renter's insurance policy that ...
  2. Water Damage Insurance

    A type of protection provided in most homeowners insurance policies ...
  3. Water Damage Legal Liability Insurance

    A policy that provides financial protection to a person or business ...
  4. Property Insurance

    A policy that provides financial reimbursement to the owner or ...
  5. Contingency Clause

    A contract provision that requires a specific event or action ...
  6. Absolute Exclusion

    An insurance policy clause that eliminates coverage of certain ...
Related Articles
  1. Home & Auto

    Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.
  2. Personal Finance

    "The Santa Clause"

    The three "Santa Clause" films have grossed $144,833,357, $139,236,327 and $84,500,122.
  3. Home & Auto

    Intro To Insurance: Property And Casualty Insurance

    By Cathy ParetoProperty and casualty insurance is insurance that protects against property losses to your business, home or car and/or against legal liability that may result from injury or damage ...
  4. Home & Auto

    Renters' Guide: Renter's Insurance

    Renter's insurance is a form of property insurance that provides coverage for losses to the tenant's personal property and losses resulting from liability claims, such as injuries occurring on ...
  5. Insurance

    Is Renter’s Insurance Worth It?

    Renter’s insurance is so relatively inexpensive that there’s really no reason not to have it. Still, how much does it cost and what does it cover?
  6. Insurance

    What is a Force Majeure?

    A force majeure clause frees both parties in a contract from fulfilling their obligations in the event of some catastrophic or unexpected occurrence.
  7. Insurance

    Have The Right Condo Insurance?

    How well does your condo's master-insurance policy protect you? Here's why you'll probably need separate insurance for your own unit and possessions.
  8. Retirement

    Estate Planning: Other Types Of Wills

    by Cathy Pareto, CFP®, AIF® (Contact Author | Biography) In addition to the traditional types of wills discussed in Part 2, there are other types of wills, which include the following: ...
  9. Professionals

    Risks to Consider When Investing in Water

    Investing in water should be a lock. But water is volatile and could see as many risks as potential rewards.
  10. Personal Finance

    Looking for Cost-Effective Ways to Save Water?

    There are lots of things you can do to save water at home while reducing your ecological footprint at the same time. Here are five simple ways to do it.
RELATED FAQS
  1. Does renters insurance cover water damage?

    Learn how renters insurance provides personal property coverage for items damaged by water only if the water is the result ... Read Answer >>
  2. Does renters insurance cover moving?

    Learn how a renters insurance policy will only provide coverage during a move under certain circumstances, such as damage ... Read Answer >>
  3. Does renters insurance cover pet damage?

    Understand the potential snags when it comes to renting a place as a pet owner, and become wiser when it comes to liability ... Read Answer >>
  4. Does renters insurance cover mold?

    Learn how mold damage is covered under a renters insurance policy if the insured makes a good faith effort to remedy the ... Read Answer >>
  5. Does homeowners insurance cover broken pipes?

    Learn how a typical home insurance policy excludes coverage for the broken pipe itself but covers the resulting accidental ... Read Answer >>
  6. What is an alienation clause?

    Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center