Does Homeowners Insurance Cover Sewer Backup?

This type of incident, commonly referred to as sewer backup, can cause significant damage to a property and its contents. A standard homeowners insurance policy generally does not cover damage resulting from sewer backup. This is a common exclusion in many policies, meaning that specific additional coverage is typically required to protect against such financial losses.

Standard Policy Exclusions

Standard homeowners insurance policies are designed to cover sudden and accidental perils. These policies typically provide “open perils” coverage for the dwelling, meaning they cover all risks unless specifically excluded. However, for personal property, coverage is usually on a “named perils” basis, covering only specific events listed in the policy.

Damage caused by water backing up through sewers or drains, or overflowing from a sump pump, is a common exclusion in these standard policies. Insurers often exclude this type of water damage because it can be associated with gradual issues, maintenance problems, or specific water sources not listed among the covered perils.

Adding Water Backup Coverage

Homeowners can obtain coverage for sewer backup by adding a specific endorsement to their existing homeowners insurance policy. This optional coverage is frequently referred to as “Water Backup and Sump Overflow” coverage.

The process of adding this coverage typically involves contacting an insurance agent to discuss available options. Homeowners will need to select appropriate coverage limits, which often start around $5,000 but can extend to the full replacement cost of the home depending on the insurer and the homeowner’s needs. A deductible, representing the out-of-pocket expense before coverage applies, will also be chosen. The cost of this endorsement can vary, influenced by factors such as the chosen coverage limits, the deductible amount, the property’s location, and any prior claims history.

What Water Backup Coverage Includes

A water backup and sump overflow endorsement covers damage from water that backs up through sewers or drains, or overflows from a sump pump. This typically includes damage to the dwelling’s structure, such as floors and walls, and personal property like furniture, appliances, and electronics. Some policies also include coverage for additional living expenses if the home becomes uninhabitable due to the damage.

This endorsement does not cover all water damage. For instance, damage caused by external flooding, such as overflowing rivers or heavy rainfall entering the home from the ground, requires a separate flood insurance policy. Furthermore, damage resulting from a lack of maintenance or negligence, like clogged pipes due to preventable issues, is usually excluded. Damage to sewer main breaks outside the property line may also not be covered, sometimes requiring a different type of utility line coverage.

Navigating a Claim

If a sewer backup incident occurs, several immediate steps can help streamline the claims process. Prioritizing safety is essential, which includes avoiding contact with contaminated water and ensuring electrical systems are safe. Thoroughly documenting the damage with photos and videos before any significant cleanup is also important, as this provides crucial evidence for your claim.

Taking reasonable steps to mitigate further damage, such as removing standing water or drying affected areas, is generally expected by insurers, but permanent repairs should typically wait for an adjuster’s assessment. Promptly notifying your insurance company about the incident is a necessary step to initiate the claim. Additionally, maintaining detailed records of all expenses related to cleanup, damage mitigation, and potential temporary living arrangements will be beneficial during the claim evaluation.