DEFINITION of 'Water Damage Clause'

A clause in a property-casualty insurance contract. A water damage clause states that the insured is covered for water damage that occurs for specific reasons, such as frozen pipes or sewer backup. Water damage clauses are therefore usually included in most homeowners and renters' policies.

BREAKING DOWN 'Water Damage Clause'

Water damage can be quite expensive to fix. For this reason, most homeowners and renters are willing to pay a higher price for a policy that includes this coverage. However, water damage clauses usually exclude damage from floods, for which a separate rider or policy must be purchased.

  1. Water Exclusion Clause

    A restriction in a homeowner's or renter's insurance policy that ...
  2. Escalator Clause

    An escalator clause is a contract provision allowing for an increase ...
  3. Contingency Clause

    A contract provision that requires a specific event or action ...
  4. Reinstatement Clause

    A reinstatement clause is an insurance policy clause that states ...
  5. Acceleration Clause

    An acceleration clause is a contract provision that allows a ...
  6. Liberalization Clause

    A liberalization clause is an insurance policy provision allowing ...
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