Water Exclusion Clause

AAA

DEFINITION of 'Water Exclusion Clause '

A restriction in a homeowner's or renter's insurance policy that denies coverage for certain water-related claims. Types of water damage that are likely to fall under a water exclusion clause include damage caused by flood, tsunami, standing water, groundwater and drain/sewage backup. Some types of excluded water damage can be insured by purchasing a rider, while others cannot be covered at all or can only be covered through a separate policy.

INVESTOPEDIA EXPLAINS 'Water Exclusion Clause '

Water damage is one of several types of exclusion clauses commonly found in homeowners' and renters' insurance policies. Other common exclusions include earthquakes, landslides, war, nuclear hazards and government action. On the other hand, losses that most policies do cover include fire, wind, hail, vehicle damage, vandalism, theft, and falling objects, among other losses.



RELATED TERMS
  1. Water Quality Insurance Syndicate ...

    An American company that provides water pollution liability insurance ...
  2. Flood Insurance

    A financial instrument that protects real property owners from ...
  3. Catastrophe Insurance

    Insurance to protect businesses and residences against natural ...
  4. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
  5. Elder Law

    Elder law is a legal specialty focusing on the rights and needs ...
  6. Net Premiums Written

    The sum of premiums written by an insurance company over the ...
Related Articles
  1. Insurance Tips For Homeowners
    Insurance

    Insurance Tips For Homeowners

  2. The Beginner's Guide To Homeowners' ...
    Home & Auto

    The Beginner's Guide To Homeowners' ...

  3. Understanding Lender-Required Flood ...
    Home & Auto

    Understanding Lender-Required Flood ...

  4. Insurance 101 For Renters
    Options & Futures

    Insurance 101 For Renters

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center