Sprinkler Leakage Insurance
What Does Sprinkler Leakage Insurance Mean?
Sprinkler leakage insurance covers property damage caused by an automatic sprinkler system that leaks or accidentally discharges water, rather than activating in response to fire or smoke. This coverage can be included as a clause in a standard policy or added as an endorsement by the policyholder.
Insuranceopedia Explains Sprinkler Leakage Insurance
Sprinkler leakage insurance is a liability policy that covers damage caused by an automatic sprinkler system on behalf of its owner. It is not a stand-alone policy but is typically included as part of a property insurance policy. Because sprinkler systems are most common in commercial buildings, this coverage usually sits inside a commercial property insurance policy rather than a residential one. If it is not already included and the policyholder wishes to be protected against sprinkler system malfunctions, they must request their insurer to add this coverage.
However, damage caused by a properly functioning sprinkler system, discharging water in response to a fire, is excluded from sprinkler leakage insurance coverage. Commercial landlords in particular should confirm whether sprinkler leakage is included before a malfunction happens, since landlord policies for commercial buildings vary in what they cover by default.
