Water Exclusion Clause

Definition of "Water exclusion clause"

Kevin Heinbuch real estate agent
Kevin Heinbuch, Real Estate Agent WHY USA Eastern Iowa Realty

Provision in many property insurance policies that excludes coverage for floods and backup from sewers or drains and underground water. Because floods and hurricanes are generally confined to certain areas, only policyholders in those areas need flood insurance. Therefore, it is impossible for underwriters to spread the risk, which is the basis of underwriting. But because homeowners in the endangered areas need insurance, the U.S. government developed a special FEDERAL FLOOD INSURANCE program.


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