What is ‘Water Damage Clause’
A clause in a property-casualty insurance contract. A water damage clause states that the insured is covered for water damage that occurs for specific reasons, such as frozen pipes or sewer backup. Water damage clauses are therefore usually included in most homeowners and renters’ policies.
Explaining ‘Water Damage Clause’
Water damage can be quite expensive to fix. For this reason, most homeowners and renters are willing to pay a higher price for a policy that includes this coverage. However, water damage clauses usually exclude damage from floods, for which a separate rider or policy must be purchased.
Further Reading
- Risk allocation in public-private partnership water supply projects in Ghana – www.tandfonline.com [PDF]
- A financial economic theory of punitive damages – heinonline.org [PDF]
- The cost of noncompliance: The economic value of water in the Middle Arkansas River Valley – www.jstor.org [PDF]
- Assessing side-payment and cost-sharing patterns in international water agreements: The geographic and economic connection – www.sciencedirect.com [PDF]
- The Unconscionability of a Liquidated Damage Clause: A Practical Application of Behavioral Decision Theory – heinonline.org [PDF]
- The principle of full cost recovery in the EU-water framework directive—genesis and content – academic.oup.com [PDF]
- State constitutional limitations on public industrial financing: an historical and economic approach – heinonline.org [PDF]
- Reforming water allocation policy through markets in tradable water rights: lessons from Chile, Mexico, and California – www.jstor.org [PDF]
