Water Damage Clause

What Does Water Damage Clause Mean?

A water damage clause is a provision in a property insurance contract that specifies whether water damage to the property is covered, under what circumstances, and for how much. Typically, most homeowners and renters insurance policies include such clauses.

Insuranceopedia Explains Water Damage Clause

Losses from water damage can be exceptionally high, as repairs often involve tearing out and replacing entire sections of a building. These costs can range from tens to hundreds of thousands of dollars. For this reason, it is crucial for property owners to fully understand the specific coverage their property insurance provides. The page on whether homeowners insurance covers water damage walks through the specific scenarios most policies will and won’t pay for.

For instance, a water damage clause often excludes certain types of water damage, such as flooding. In flood-prone areas, property owners may need to purchase additional coverage. Because standard policies treat rising water as a separate risk, homeowners near rivers, coasts, or other high-risk zones usually have to buy a flood insurance policy on top of their regular coverage. Generally, water damage clauses cover smaller losses, such as those caused by burst pipes or plumbing issues. Even within those covered events, the underlying repair, such as replacing the broken pipe itself, is often treated differently than the resulting water damage to the home.