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 Clause

    A clause in a property-casualty insurance contract. A water damage ...
  2. Water Damage Legal Liability Insurance

    A policy that provides financial protection to a person or business ...
  3. Water Exclusion Clause

    A restriction in a homeowner's or renter's insurance policy that ...
  4. Contractors' All Risks (CAR) Insurance

    An insurance policy that provides coverage for both damage to ...
  5. Property Insurance

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

    Insurance that protects a property owner against damage caused ...
Related Articles
  1. Managing Wealth

    The Most Expensive Home Insurance Perils

    Floods, hurricanes, mold, earthquakes - the threats to your home are numerous.
  2. 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.
  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

    Homeowner's Insurance Guide: A Beginner's Overview

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

    Homeowner’s Insurance Gaps to Watch Out For

    Wind and flood damage. Sewer backups. Sinkholes. What coverage are you missing that could cost you a bundle in repairs?
  6. Investing

    5 Expensive (And Unexpected) Things That Can Happen To Your Home

    These perils can put a dent in the value of one of your biggest assets. Find out how to prevent them.
  7. Insurance

    6 Types Of Insurance Coverage You Didn't Think You Needed

    These different types of insurance coverage can be beneficial, but they're often overlooked and misunderstood.
  8. 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.
  9. 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.
  10. 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.
RELATED FAQS
  1. Does homeowners insurance cover mold?

    Discover how mold coverage on homeowners insurance is not always guaranteed and how to make sure it is there for you if you ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider ... Read Answer >>
  5. 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 >>
  6. Does homeowners insurance cover fires?

    Understand if your homeowners insurance policy covers fire damage so you can protect what is likely to be your most valuable ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center