Water Exclusion Clause

Water Exclusion Clause

A clause in some property insurance contracts stating that flood or other water damage does not receive coverage. Water exclusion clauses exist because the substantial amount of damage water can cause poses a significant risk for insurers. Some private insurers refuse to insure against flood damage at all; as a result, some governments institute their own insurance programs.
References in periodicals archive ?
The water exclusion clause (which appears in all three causes of loss forms--basic, broad, and special) excludes loss caused by flood, surface water, water that backs up from a sewer or drain, and water underground.
The water exclusion clause, which is in all three causes of loss forms, excludes loss caused by flood, surface water, water that backs up from a sewer or drain, and water underground.