Water Backup Coverage for Homeowners

While you might be surprised to find out that damage from sewer backups that occur off your property aren’t covered, there's good news. You can add a water backup endorsement to your policy to protect against these types of water backups, including damage from sump pump failures. This type of water back up insurance may also be referred to as water sewer backup coverage or water back up and sump overflow coverage, depending on the insurer and policy language.

It’s important to understand the distinction between "backup" and "overflow" when discussing water damage. A backup happens when water flows backward through pipes, often due to a blockage or other obstruction. In contrast, an overflow occurs when water cannot properly drain due to a clog, causing it to spill over the edges of the drain or sump.

Quick takeaway: Standard homeowners insurance may cover some sudden and accidental water damage, but water backup coverage can help fill a different gap — damage caused by backed-up sewers, drains or sump pump overflow.

What is a water backup endorsement?

The water backup endorsement can be added to your homeowners insurance policy to cover damage caused by water backing up through sewers or drains off your property, or from overflows or discharges from sump pumps. With this endorsement, you’re covered for the direct physical damage caused by these issues – whether it's from a clogged sewer or a sump pump failure. Here are a few scenarios where water backup coverage could kick in:

• Power outage: If a storm causes a power outage and your sump pump stops working, leading to water in your basement, the water backup endorsement may cover the resulting damage.
• Clogged sewer pipe: If a blockage in a sewer line off your property causes water to back up into your home, water backup coverage may apply.
• Heavy rainfall: In cases where heavy rain causes water to enter the basement through an improperly functioning sump pump or French drain, this endorsement may help cover the damages.

What does water backup coverage include?

Water backup coverage can generally pay for repairs to your home, personal belongings and the costs of cleanup and mitigation efforts.

• Home repairs: Damage to the structure of your home, including walls and floors, caused by water backup or overflow.
• Personal property: Damage to personal items like furniture, electronics and clothing, in areas of your home affected by the water.
• Cleanup and mitigation: Costs associated with removing the water, drying out the space, preventing mold growth and removing any wet or damaged material.

However, there are certain exclusions in both the homeowners policy and water backup endorsement you should be aware of, such as:

• Wear and tear: Normal aging or deterioration of plumbing, pipes or sump pump systems isn’t typically covered. However, the ensuing water damage may be covered.
• Groundwater seepage: Water that seeps or flows into your home through the foundation, driveways, patios or other structures is generally excluded.
• Flood damage: Damage caused by surface water, waves or water from tides is generally not covered under water backup insurance. For this, you would need to purchase flood insurance.

Need more info? Take a broader look at what your home insurance may and may not cover and whether water damage may be covered by your policy.

Do I need to have water backup and sump overflow endorsement?

Do you need water backup coverage with an unfinished basement? Or if you don’t have a sump pump? The decision to add water backup coverage to your policy can depend on several factors. Here are a few things to consider when deciding whether this endorsement is right for you:

• Home features: If your home has a finished basement, it’s especially important to consider water backup coverage. Water damage in finished areas can be costly to repair, and the contents in these spaces, even unfinished basements – furniture, keepsakes and appliances – are at greater risk of being damaged.
• Location: If you live in an area that experiences frequent storms or heavy rainfall, you may be at a higher risk for water backup or overflow damage. Additionally, if you live in an area prone to power outages, a malfunctioning sump pump during a storm may result in overflows.
• Age of plumbing system: Older communities with aging pipes may be more likely to experience blockages or failures that could lead to water backups.

Better to be cautious: Water sewer backup coverage may be worth discussing even if you don’t have a finished basement. Stored belongings, appliances, flooring and cleanup costs can still add up after a backed-up drain or sump overflow.

Tips on how to prevent water backup and sump overflow

While water backup coverage can help cover the costs associated with repairing damage, prevention is always the best approach. Try to keep your plumbing and sump pump well-maintained to ensure everything is functioning properly. Routine inspections can catch small issues before they become big problems.

You can also test your sump pump periodically, clear debris from drains when appropriate and consider a battery backup for the pump if power outages are common where you live.

Helpful tips: It’s a good idea to learn how you can protect your home and prevent basement flooding. If water damage does happen, however, you might need to also know the basics on filing a claim.