Water Damage Insurance

AAA

DEFINITION of 'Water Damage Insurance '

A type of protection provided in most homeowners insurance policies against sudden and accidental water damage. Water damage insurance does not cover damage resulting from homeowner's negligence or failure to maintain home repairs. Moreover, flooding usually requires a separate policy if available.

INVESTOPEDIA EXPLAINS 'Water Damage Insurance '

As water damage insurance does not cover negligence, many types of water damage to real property can and should be avoided through proper maintenance. This can be anything like watching out for drippage from the ceiling during a rainstorm or a fixing a leaky pipe under the kitchen sink before mold becomes prevalent.



RELATED TERMS
  1. Water Damage Legal Liability Insurance

    A policy that provides financial protection to a person or business ...
  2. Water Quality Insurance Syndicate ...

    An American company that provides water pollution liability insurance ...
  3. Water Quality Improvement Act Of ...

    Legislation that expanded the federal government's authority ...
  4. Water Exclusion Clause

    A restriction in a homeowner's or renter's insurance policy that ...
  5. Water Pollution Liability

    Financial and legal responsibility for causing contamination ...
  6. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
Related Articles
  1. Home & Auto

    The Beginner's Guide To Homeowners' Insurance

    Discover everything new homeowners need to know before they sign on the dotted line.
  2. Home & Auto

    4 Overlooked Homeownership Costs

    Mortgage payments aren't the only expense. Find what else you'll be on the hook for.
  3. Insurance

    With HO5 Insurance, You're In Charge

    This home insurance covers everything and will put the onus on your insurance provider.
  4. Insurance

    15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  5. Home & Auto

    Exploring Advanced Insurance Contract Fundamentals

    Understanding your contract can help you protect our family's financial security.
  6. Home & Auto

    Understanding Lender-Required Flood Insurance

    Having to buy flood insurance shouldn't be a surprise. Find out what you need to know when purchasing or refinancing a house.
  7. Budgeting

    The Hidden Costs Of Home Ownership

    Mortgage lenders don't factor the extra costs into your loan amount. Make sure you save for the "little" things.
  8. Options & Futures

    Insurance 101 For Renters

    If it's time for you to leave the nest, find out how to protect your new home from disaster.
  9. Insurance

    Homeowners Insurance Losers: States That Pay Most

    Which states charge you the most for homeowner's insurance? Hint: They're regularly featured on the Weather Channel.
  10. Home & Auto

    7 Ways To Increase Your Home's Appraisal Value

    When it's time to sell your home – or refinance it – it will need to be appraised. Here's how to make sure the valuation is as high as possible.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center