Do I Need to Buy Additional Coverage for Sewer Backup Damage on My Home Insurance Policy?

Homeowners insurance policies usually exclude damage caused by a buildup of wastewater. This means that any destruction caused by untreated water or wastewater will not be eligible for reimbursement from the insurance company. Unfortunately, many of the causes of wastewater accumulation can be due to physical damage to the pipeline, which could result in a costly bill to replace the pipe and repair the damage in the house. While home insurance protects you against some types of unexpected water damage, water accumulations and overflows from sump pumps are usually not covered.

You can purchase optional backup water coverage that can pay for damages in the event of a buildup of wastewater or a malfunctioning sump pump. Many people mistakenly assume that they are automatically covered by Sewer Backup on their investment property. However, according to the Insurance Information Institute (III), you should review your specific policy to determine if you have backup sewer coverage. This is true regardless of whether you have a basic, comprehensive, or special form policy.

Homeowners insurance doesn't cover damage to sewer, water, and drain. Backup water coverage can be added to your policy to protect against damage caused by accumulated water in the sewer. Unfortunately, not many insurance companies offer this guarantee, so you may have to switch insurers to get it. Standard homeowners insurance policies generally don't cover damage to sewer lines or any other service lines that run outside or under your home.

If you can't add service line coverage to your home insurance policy, you can look for a service plan from your utility company, which is essentially a guarantee that covers repairs to sewer and water lines. The final insurance policy premium for any policy is determined by the insurance company upon application. You may have to enroll in several service plans to insure several public services, compared to service line coverage, which would cover all of your service and utility lines as part of your current home insurance. In addition to sewer backup coverage, there are other types of property insurance available for rental properties, vacant properties, renovations, new construction, vacant land, vacation rentals, mobile homes, condos, and more.

Liability insurance is also available for those who need it.