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.

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. Generally, water damage clauses cover smaller losses, such as those caused by burst pipes or plumbing issues.