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 Exclusion Clause

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

    Financial and legal responsibility for causing contamination ...
  4. Water Quality Improvement Act Of ...

    Legislation that expanded the federal government's authority ...
  5. Water Quality Insurance Syndicate ...

    An American company that provides water pollution liability insurance ...
  6. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
Related Articles
  1. The Beginner's Guide To Homeowners' ...
    Home & Auto

    The Beginner's Guide To Homeowners' ...

  2. 4 Overlooked Homeownership Costs
    Home & Auto

    4 Overlooked Homeownership Costs

  3. With HO5 Insurance, You're In Charge
    Insurance

    With HO5 Insurance, You're In Charge

  4. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center