Water Exclusion Clause

What Does Water Exclusion Clause Mean?

A water exclusion clause is a restriction in a homeowner’s or renter’s insurance policy that excludes coverage for claims related to damages caused by floods, tsunamis, groundwater, standing water, and sewage backups.

Insuranceopedia Explains Water Exclusion Clause

The rationale behind a water exclusion clause is that natural catastrophes such as floods, tidal waves, and earthquakes primarily impact individuals living in high-risk areas and, therefore, may not be covered under standard insurance policies. Because a standard policy will not pay out for rising water, homeowners in flood-prone areas usually need to buy a separate flood insurance policy through the National Flood Insurance Program or a private carrier.

It’s worth noting that not every water-related loss falls under this exclusion. A sudden, accidental release inside the home, like a burst pipe, is often handled differently than rising floodwater, which is why it helps to read up on when homeowners insurance covers water damage before filing a claim.

In addition to water damage, homeowner’s insurance policies often exclude other risks, such as earthquakes, landslides, war, nuclear hazards, and government actions. To obtain coverage for these risks, you can purchase a rider to your main policy for an additional premium.