Here's just one example:
The town's drainage system was overloaded after a week's worth of rain. Water backed up into the drains of Mary Clement's unfinished basement causing around $4,500 in damage. Even though Mary did not have a sump pump, if she had a Limited Water Back-Up and Sump Pump Discharge or Overflow endorsement added to her homeowner’s policy, the claim would be covered, up to the limits of the endorsement, less the deductible.
What, exactly, is water back up coverage?
Water back up and sump pump failure coverage is not covered under a homeowners’ (HO 03, HO 05) policy. Coverage is available as an endorsement called Limited Water Back-Up and Sump Pump Discharge or Overflow. This endorsement offers coverage to property for direct, physical loss by water that backs up into the home through pipes, drains, sewer, water-service, sump pump and any other type of fluid transfer system from the house, and is available with optional limits and deductibles.
This coverage excludes the cost of the sump pump itself (if there is one) and any loss related (but not limited) to flood, tidal water, or groundwater seepage. Ask your agent for a full list of details.
How much water back up coverage do you need?
- Is your basement finished or unfinished?
- Take an inventory of the items, flooring, furniture, etc. kept there. Even if unfinished, is your furnace, oil tank, or hot water tank located there?
Ask your licensed insurance agent for more information about Limited Water Back-Up and Sump Pump Discharge or Overflow and how much coverage is right for you.