Water Damage Legal Liability Insurance

Definition of 'Water Damage Legal Liability Insurance'


A policy that provides financial protection to a person or business that unintentionally causes water damage to the property of another. Water damage legal liability insurance is not included in all policies, so the insured should read his or her insurance contract carefully to determine if this coverage is included.

Investopedia explains 'Water Damage Legal Liability Insurance'


For example, if the owner of a second-floor condo unit experienced a water heater explosion and the water leaked into any units on the first floor, water damage legal liability insurance would protect the owners of the second-floor condo by providing the money to repair the damage to the first-floor units. This kind of insurance can also benefit renters, as renters don't own the property they occupy, they can be held liable for water damage to their own unit as well as neighbors' units.



comments powered by Disqus
Hot Definitions
  1. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center