what is a water exclusion clause 
a water exclusion clause is a restriction in homeowners and renter s insurance policies that denies coverage for some water related claims events that are likely to fall under a water exclusion clause include damage caused by flood tsunamis standing water groundwater and drain or sewage backups homeowners and renters may be able to add some types of water damage coverage excluded in the standard policy by purchasing a rider or separate specialized insurance understanding a water exclusion clausea water exclusion clause is common in most property insurance policies the reasoning is that only specific areas are prone to water related natural disaster events such as floods tidal waves or tsunamis water exclusion is one of several types of exclusion clauses found in homeowners and renter insurance contracts other standard exclusions include movements of the earth quakes landslides wars and certain other government actions and nuclear hazards and events however water related perils aren t totally excluded by homeowners insurance most policies routinely do cover water damage that occurs for specific reasons usually a sudden or accidental event that occurs within the structure such as a burst pipe or malfunctioning dishwasher or other plumbing water supply related problems gradual damage or wear and tear that happens over time generally isn t covered though destruction arising out of certain weather events such as thunderstorms that send a tree crashing through a wall or snow that collapses a roof allowing water to pour in generally are covered at least the water damage they cause is ironically the cost of repairing the wall or roof may not be some types of hurricane related damage may also be covered though in 19 states and the district of columbia policyholders must pay an additional hurricane deductible before coverage kicks in 1 special considerations floods and water exclusion clausesunless it s due to an internal cause like a gushing washer dryer or an overflowing toilet flooding is a typical part of a water exclusion clause these clauses generally define a flood as rising or surface waters that come from the outside in though even this is often subject to controversy and litigation should the clause apply if the flood ensues from man made forces a burst dam a collapsed levee rather than natural forces e g continuous rain that makes a river overflow its banks does surface water come solely from rain or melting snow or does it count if it s been sitting on a man made surface such as pavement a balcony or a roof despite the legal debate the bottom line is that a flood from an external source that seeps into a home probably won t be covered by the hazard insurance component of a standard homeowners policy the expensive nature of water damage and the prevalence of it in 2018 water damage and freezing represented 23 8 of all insurance losses2 gives homeowners and renters reasons to find alternative coverage options average losses to homeowners due to water damage and freezing in 2018 according to the insurance information institute 2 usually that means purchasing a separate policy for protection against flood damage known as flood insurance in fact for properties in high risk areas lenders sometimes require mortgaged homeowners to carry flood insurance at least to protect the structure of the dwelling unlike a standard homeowners policy flood insurance requires that a policyholder buy separate policies to cover the property and the property s contents homes financed by a federally backed lender for example require flood insurance if they are located in a government designated flood hazard zone 3flood insurance policies are available for both residential and commercial properties renters can also purchase flood insurance policies that cover their personal property in a single family home apartment condominium or business property 4while flood insurance can be purchased through many different insurance companies the rates are regulated by the federal national flood insurance program nfip so the same policy costs the same amount no matter which company it is purchased through 5