Water backup coverage is an optional home insurance endorsement that covers damage caused by water backing up into your home, or overflowing, from a sump pump or related equipment. The endorsement usually pays to repair damage to your property, including the structure of your home and personal items, while some water backup endorsements also offer additional living expense coverage.
You may need a water backup coverage endorsement because standard homeowners insurance policies only cover water damage that’s sudden and accidental, like a pipe that bursts, or a roof that starts leaking after a windstorm. Most standard policies don't cover damage from overflowing sump pumps or sewer backups, which makes this endorsement a crucial addition for some homes.
What does a water backup endorsement cover?
A water backup endorsement helps pay for repairs when water backs up into your home. Some situations that trigger this coverage include:
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Clogged sewer lines
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Drain backups
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Sump pump failures
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Septic system backups
When these or similar events damage your home’s structure, such as the foundation, walls, or flooring, water backup insurance kicks in to help you pay for the cost of repairs or replacements.
Water backup endorsements can also pay to repair or replace the contents of your home, including small appliances, electronics, and furniture. Your policy may also cover additional living expenses, such as the cost of a hotel, meals, or laundry services, if your home becomes temporarily uninhabitable.
When you purchase water backup endorsements, you’ll typically need to choose a coverage limit and a deductible.
A coverage limit is the most your insurer will pay out for a covered incident. Water backup coverage limits vary by insurer, but common options include $5,000 to $10,000 or more.
Your deductible is the portion of damage-related expenses you need to pay out of pocket. Your insurer will deduct that amount from your claims check. You may have the option to choose between several deductible amounts, though $1,000 is common.
If you choose a higher deductible, you’ll pay a lower monthly premium, but your out-of-pocket expenses will be higher. Likewise, lower deductibles yield higher premiums, but you’ll pay less up front after a covered event. Speak to your insurance agent about what’s a realistic coverage limit and deductible for your situation.
What isn’t covered by a water backup endorsement?
More often than not, water backup endorsements don’t cover damage related to:
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Flooding
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Pools
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Lack of maintenance
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Normal wear and tear
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Gradual leaks
Water backup insurance doesn’t cover the cost of repairing damaged equipment. So if your sump pump suddenly stops working, your water backup coverage helps cover resulting damage repairs, but it won’t cover the cost to replace the pump.
Water backup insurance also won’t cover the cost of replacing broken utility lines. For instance, if a water line running under your property fails and water backs up into your basement, your policy won’t cover the cost to repair the water lines. It will, however, cover the cost of repairing structural damage and waterlogged personal belongings.
Do you need water backup coverage?
Water backup coverage isn’t required, but many homeowners can benefit from having it.
Standard home insurance policies exclude coverage for water backups and overflows, so having this endorsement can provide valuable financial protection.
However, certain homeowners may benefit from water backup coverage more than others. Water backup coverage can be a worthwhile investment if you:
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Have a basement, especially one that’s finished
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Have a sump pump
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Own a house that is older or has old plumbing
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Live in an area with an old sewer system
Water backup endorsements aren’t usually expensive. Some homeowners can add $5,000 worth of water backup coverage for as little as $30 per year.
How water backup coverage differs from flood insurance
Water backup coverage and flood insurance are two separate coverages that pay out in different situations. Depending on your home’s location, you might need both.
Water backup insurance is optional coverage that pays for damage caused by water that backs up or overflows into your home. It’s triggered by events like a failed sump pump or broken sewer pipe. Homeowners usually add this coverage as an endorsement to their home insurance policy.
Flood insurance covers damage to your home and personal items that’s directly due to flooding, such as damage caused by heavy rains, overflowing bodies of water, broken levees and dams, and natural disasters like hurricane storm surges.
You can purchase a standalone flood insurance policy through the National Flood Insurance Program (NFIP), which is backed by the U.S. government, or through a private insurer. Some private insurance companies also offer flood coverage as an endorsement on your homeowners policy.
Flood insurance is often required if you have a mortgage on your home and live in a flood zone designated as a Special Flood Hazard Area. It’s also required if you’ve received federal disaster aid for your home in the past and you want to be eligible for aid again.
How to prevent sewer backups and sump pump overflows
You may be able to reduce the risk of sewer backups and sump pump overflows if you:
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Avoid putting items down the drain that lead to clogs. Common culprits include grease, eggshells, coffee grounds, and large scraps of food.
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Dispose of paper products correctly. Paper products like baby wipes, paper towels, and tissues, should always be thrown in the trash, not flushed down the toilet.
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Maintain tree roots. Tree roots can impact the lateral sewer line that runs through your yard. To avoid problems, consider hiring a professional to inspect the line and cut back any problematic roots.
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Install a backflow valve. Have a plumber install a backflow valve in your basement or on the bottom floor of your home to prevent sewage from backing up inside.
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Get a water detection device. Consider installing a water detection device that sends an alert if water gets into your basement (or wherever you place the device). That way, you can respond right away and mitigate the risk of damage.
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Perform regular maintenance. Regularly clean out your gutters, and hire a plumber to have your pipes flushed every year. If you have a sump pump, unplug it to look for corrosion and remove debris on an annual basis.
With a little care, you can reduce your chances of having water backup problems. Taking these preventative steps reduces the risk of damage and minimizes the likelihood of filing a claim, while fewer claims can save you money in the long run.