A water exclusion clause refers to a restriction feature in renters’ and homeowners insurance policies that denies coverage for certain water-related claims. Certain events that may fall under the water exclusion clause include damage from groundwater, standing water, floods, tsunamis, sewage, or drain backups.
Homeowner’s policies will only protect against water damage from sudden mishaps in the home, such as an overflowing toilet or a burst pipe. Renters and homeowners may be able to add some types of water damage coverage excluded from their standard policy by buying a separate insurance policy. Apart from water damage, homeowners’ policies commonly exclude other risks such as war, earthquakes, nuclear hazards, and government action. For these coverages as well, you will be required to add a rider to the policy for an additional rate.
Understanding the Water Exclusion Clause
A water exclusion clause can be found in most property insurance policies. This is because only specific areas are susceptible to water-related disasters such as tsunamis, tidal waves, or floods. Water exclusion is one of the types of exclusion you can find in renter and homeowner insurance contracts. Some of the other exclusions have been mentioned above.
Understand that water-related perils are not entirely excluded from homeowners insurance. Most of these policies do cover water damage that happens for certain reasons, mostly accidental. Or sudden events that happen within the structure, such as a malfunctioning dishwasher, a burst pipe, or other water or plumbing-related situations. Keep in mind that wear and tear or gradual damage that happens over time may not be covered.
Destruction resulting from specific weather events, such as a roof collapsing under the weight of snow or a tree crashing through a wall during a thunderstorm and allowing water to pour in, is typically covered. The damage they caused will be covered, but the cost of repairing the roof or wall may not be. Certain types of hurricane-related damage might also be covered. However, in 19 states in the USA, including the District of Columbia. Policyholders have to pay an extra hurricane deductible before the coverage comes in.
Water Exclusions and Flooding
If it is not caused by an internal cause such as an overflowing toilet. Or gushing dryer or washer, flooding is a big part of a water exclusion clause. These clauses define flooding as surface or rising water that comes from outside to inside. But this is often subject to controversy and litigation. Despite various legal debates, it is said that floods from external sources that enter the home may not be covered by the hazardous insurance part of your standard homeowners insurance. As a homeowner or renter, you will need to find other alternative coverage options for the excluded ones.
This means you need to purchase a separate policy for protection against floods, called flood insurance. Just so you know, for properties in high-risk locations, lenders may require mortgaged homeowners to purchase flood insurance. This will help protect the structure of the dwelling. Unlike homeowners insurance, flood insurance requires that you buy separate policies to cover the property and its contents. Homes financed by a federal lender require flood insurance, for instance, if they are located in a government flood hazard zone.
More on Water Exclusions and Flooding
Flood insurance policies are made available for both commercial and residential properties. Renters should also buy flood insurance policies to cover their personal property in an apartment, condominium, single-family home, or business property.
Although flood insurance can easily be purchased from many insurance companies, the rates are being regulated by the federal national flood insurance program. This means the policy comes with the same amount no matter which company you purchase from.
Now, you don’t need to worry about the water exclusion clause if your home gets flooded by external sources. Before filing a claim, ensure that you know what your policy entails. This way, you can easily know what is covered and what is not. Apart from flooding, you can purchase a rider or separate insurance for other damages that are excluded from your policy. Speak to your insurance company or agent to learn more about the water exclusion clause and how it works.