Water Exclusion Clause

Posted in Finance, Accounting and Economics Terms, Total Reads: 982

Definition: Water Exclusion Clause

This refers to clause in property insurance. These are restrictions which says that the owner/insurer will not get property insurance cover in some cases of damage which might take place due to water. Floods, tsunami, standing water, groundwater and drain sewage related water problem are some of such issues which the insurance does not covers.

Some explicit conditions that may be found under such restriction are as follows:

• Flood, surface water, wave, tidal wave, overflow of any body of water or any kind of sprays, which might or might not be driven by wind and storm

• Problems in sewers and drain causing water clogging and eventual overflow or formation of water sump

• Water below the ground, water below surface, seepage, are not covered.

Generally the logic for such clauses is that when we talk about flood there are wide disputes ranging from suggestions that flood is a natural disaster and on the opposite pole that flood might be a man made disaster.


Hence, this concludes the definition of Water Exclusion Clause along with its overview.


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