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Water Damage Clause

What Does Water Damage Clause Mean?

A water damage clause is a provision in a property insurance contract that details whether the insurer covers water damage to the property, and if so, under which circumstances and for how much. Usually, most homeowners and renter policies include such clauses.

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Insuranceopedia Explains Water Damage Clause

Losses from water damage can be extremely high. This is because repair can literally involve ripping out sections of the building and replacing them completely. This can cost in the 10s or even 100s of thousands of dollars. For this reason, it is important for property owners to know exactly the exact type of coverage their property insurance offers. For example, a water damage clause often excludes coverage for water damage. In such cases, it may be necessary for those in flood-prone areas to seek extra coverage. Generally, water damage clauses provide coverage for smaller losses, such as pipes bursting and plumbing issues.

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