Should I purchase additional water damage coverage for my property?
We run into this question often with our policyholders when reviewing their homeowner’s policy coverage.
Unfortunately, it’s not always clear in the policy language and can be easily misunderstood. Allow us to take a moment to explain.
A standard homeowners policy may provide limited coverage — if any — for sewage backup or sump pump failure. You can purchase an endorsement for backup coverage, but the limits may not provide the appropriate coverage you need for your home and contents. Sewer and drain backup coverage on a homeowners policy typically provides financial protection for damages caused by the backup or overflow of a sewer or drain. This may include damage to the home's plumbing systems, sewage cleanup, and repair or replacement of damaged personal belongings. It may also cover the cost of temporary living expenses if the home becomes uninhabitable due to the damage.
It is important to note that this coverage is typically limited and may require an additional endorsement or separate policy to fully protect against sewer and drain backups.
How you may be at risk
Let’s review the following scenarios and consider potential risks and associated costs:
Years of normal kitchen activity eventually cause your sewer line to clog and back up into your home. Your entire kitchen needs to be torn out and could take 6 months to restore.
You have extended family staying with you, and your bathroom overflows and floods into several adjoining rooms.
Your home’s sump pump fails due to a heavy rainstorm, causing water to back up in the finished basement of your home.
Source: Nationwide.com - Sewer and Drain Backup Coverage
Would your insurance policy cover you in these situations? We work with carriers that provide adequate coverage and peace of mind. Schedule a review with a licensed agent today!