What is a water exclusion clause?

A restriction known as a water exclusion clause prevents homeowners’ and renters’ insurance plans from covering specific water-related claims. A water exclusion provision is likely to apply when damage occurs from floods, tsunamis, standing water, groundwater, and backups of drains or sewage.

By acquiring rider or additional specialist insurance, homeowners and renters may be able to add various forms of water damage coverage that are not covered by the primary policy.

Understanding a Water Exclusion Clause

Most property insurance plans have a water exclusion provision. The argument is that water-related natural catastrophes, such as floods, tidal waves, or tsunamis, are limited to certain places. One exclusion clause that may be found in renters’ and homeowners’ insurance policies is the water exclusion clause. The earth’s movements (earthquakes, landslides), wars, certain other official activities, and nuclear threats and disasters are additional standard exclusions.

Homeowners insurance does not, however, eliminate the risks associated with water. Most insurance typically covers water damage that arises from specific causes, which are often unplanned or unexpected events within the building, including a burst pipe, a broken dishwasher, or other issues with the plumbing or water supply. However, wear and tear or gradual damage over time is often not covered.

The expense of fixing the wall or roof may not always be paid. Still, weather-related destruction—such as thunderstorms that bring trees crashing through walls or snow that collapses roofs, enabling water to flow in—is usually covered. Although customers in 19 states and the District of Columbia must pay an extra storm deductible before coverage begins, specific hurricane-related damage may also be covered.

Particular Points to Remember: Water Exclusion Clauses and Floods

A water exclusion provision usually covers flooding unless an interior issue, such as a gushing washer, dryer, or overflowing toilet, causes it. Though this definition is sometimes contested and the subject of lawsuits, these sections commonly describe a flood as rising or surface waters originating from the outside. Does the clause still apply if the flood results from artificial factors (such as a broken dam or a failed levee) instead of natural causes (such as constant rain causing a river to overrun its banks)? Does surface water originate from rain or snowmelt, or does it include surface water collected on artificial surfaces like roofs, balconies, and pavements?

In any case, the hazard insurance portion of a typical homeowners policy is unlikely to cover a flood that seeps into a property from an outside source, regardless of the legal arguments surrounding the matter. Due to the high cost and frequent occurrence of water damage (frosting and water damage accounted for 23.8% of all insurance claims in 2018), renters and homeowners are encouraged to look into other coverage choices.

$5,849

According to the Insurance Information Institute, there are two thousand eighteen average home losses from freezing and water damage.

Typically, this entails getting flood insurance, a separate policy that protects against flood damage. Lenders may sometimes demand that mortgaged homeowners get flood insurance for residences in high-risk areas—if only to save the home’s structure. (Unlike a typical homeowners policy, flood insurance necessitates the purchase of separate policies by the insured for both the building and its contents.) For instance, properties funded by federally supported lenders must have flood insurance if they are situated in an area the government identifies as a flood threat.

Policies for both residential and commercial premises are available for flood insurance. Renters who own a single-family house, apartment, condominium, or commercial property may also acquire flood insurance plans that protect their personal belongings.

The federal government’s National Flood Insurance Program (NFIP) sets prices for flood insurance, but it is available from other insurance providers. Therefore, the cost of the same insurance remains the same, regardless of the provider.

Conclusion

• A common component of property insurance policies is a water exclusion provision, which excludes coverage for several types of losses related to incidents that occur in water.
• Water exclusion clauses usually include the following: tsunamis, sewage or water main failures or backups, natural disasters, and standing or groundwater.
• In most cases, the homeowner’s insurance covers water damage from an unexpected event inside the home—such as a busted pipe or overflowing toilet.
• Separate flood insurance provides protection from floods.