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.

BREAKING DOWN '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 Exclusion Clause

    A restriction in a homeowner's or renter's insurance policy that ...
  3. Property Insurance

    A policy that provides financial reimbursement to the owner or ...
  4. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
  5. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
  6. Combined Physical Damage Coverage

    Combined physical damage coverage is an auto insurance policy ...
Related Articles
  1. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  2. Insurance

    Homeowner's Insurance Guide: A Beginner's Overview

    Everything new homeowners need to know about insurance to protect their residence.
  3. Insurance

    What Does Renter's Insurance Cover?

    Renter's insurance is supposed to cover a tenant's personal property as well as liability claims, but not all policies deliver.
  4. Insurance

    Does Your Homeowner’s Insurance Cover Airbnb?

    Renting out a room on Airbnb can be a good way to generate income, but you need to understand what is and isn’t covered by your homeowner’s insurance first.
  5. Insurance

    Flood Insurance: Myths and Misconceptions

    What does flood insurance cover? There are several myths about flood insurance cost, coverage, who needs flood insurance and what constitutes flood damage.
  6. Insurance

    What Is and Isn't Covered by Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  7. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  8. Insurance

    How PMI Insurance is Different than Home Insurance

    Homeowner's Insurance and Private Mortgage Insurance are both common requirements of closing on a mortgage, but each has different uses you should be aware of before purchasing a home.
  9. Investing

    Four Interesting Ways to Invest in Water (PHO, CGW)

    The U.S. and many other countries are widely expected to invest in water infrastructure and equipment on an unprecedented scale over the next several years – ostensibly to make up for decades ...
  10. Investing

    Opportunities In The Emerging Market's Water Crisis

    Water scarcity and increasing demand caused by population growth is one of the most compelling long-term portfolio themes.
RELATED FAQS
  1. 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 >>
  2. Does homeowners insurance cover tree damage?

    Discover how damage to a home from fallen trees is covered under your homeowners insurance policy if it happens suddenly ... Read Answer >>
  3. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
  4. Suppose my garage collapsed onto my car. Are damages covered by my home insurance ...

    Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage ... Read Answer >>
  5. Is homeowners' insurance required by law?

    Learn why it is always wise to protect your home with insurance even if it is not required. Understand how high-deductible ... Read Answer >>
  6. Does homeowners insurance cover termites?

    Learn why termite damage is typically excluded from homeowners insurance policies and how you can take steps to prevent damage ... Read Answer >>
Hot Definitions
  1. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  2. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  3. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  5. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  6. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
Trading Center