Water backup coverage is an optional home insurance add-on, or endorsement, that can provide financial protection after your property is damaged by water backing up into your home or overflowing from a sump pump or related equipment.
Water backup coverage can be a valuable policy enhancement since standard homeowners insurance policies usually only cover water damage that’s sudden and accidental, like a pipe that bursts, or a roof that starts leaking after a windstorm. Damage caused by water backups is usually excluded.
How does water backup endorsement work?
A water backup endorsement enhances your home insurance policy by adding coverage if your property is damaged by water backups or overflows. It typically covers your home's structure, including the foundation, walls, and flooring, as well as personal items, such as appliances, electronics, and furniture.
In addition, some policies include coverage for additional living expenses, such as the cost of a hotel, meals, or laundry services, if your home becomes temporarily uninhabitable due to a water backup or overflow.
When you purchase a water backup endorsement, you’ll typically need to choose the following:
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Coverage limit, or the most your insurer will pay out for an eligible claim. Water backup coverage limits vary by insurer, but standard options include $5,000 to $10,000 or more.
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Deductible, or the portion of damage-related expenses you must 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.
High coverage limits generally lead to higher premiums, but you’ll have more financial protection after a covered event. Similarly, a lower deductible can lead to slightly higher coverage costs, but you’ll have lower out-of-pocket expenses after a claim.
What does a water backup endorsement cover?
Though details can vary by insurer and policy, water backup coverage kicks in when the following events cause damage:
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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
What isn’t covered by a water backup endorsement?
A water backup endorsement also won’t typically cover damage related to:
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Flooding
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Pool leaks
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Lack of maintenance
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Normal wear and tear
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Gradual leaks
In addition to the exclusions above, water backup insurance won’t cover the cost of repairing damaged equipment. So if your sump pump suddenly stops working, your coverage may help pay for the resulting damage, but it won’t cover the cost of replacing or repairing the pump.
Water backup coverage 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 line. It will, however, generally 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. Further, adding this type of coverage is generally inexpensive. For instance, some homeowners may be able to get $5,000 in coverage for as little as $30 per year.
A water backup endorsement can be particularly worthwhile 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
How is water backup coverage different from flood insurance
Water backup coverage and flood insurance are two types of insurance that provide financial protection under different circumstances.
As described above, water backup insurance is an optional coverage that can help you pay for repairs or property replacements when water backs up into your home after a sump pump unexpectedly fails, a sewer line breaks, or another covered event occurs.
Flood insurance, on the other hand, covers damage to your home and personal items when the loss is caused by flooding from events like heavy rains, overflowing bodies of water, broken levees and dams, and natural disasters like hurricane storm surges.
If you live in a designated flood zone and have a mortgage, your lender will likely require you to carry flood insurance. You’re also required to maintain a flood insurance policy if you received FEMA assistance after a federally-declared flooding disaster or if you purchase a property that has received that aid in the past.
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 a homeowners insurance policy endorsement.
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 immediately 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.