What Is Water Backup Coverage?
Reading time • 4 minutes
By Matic
Water damage can be an expensive and stressful mess to clean up. It can also be a gray area in terms of insurance coverage. Certain types of plumbing-related water damage are often excluded from standard homeowners insurance policies — unless you have water backup coverage. This optional add-on could come in handy if your sump pump overflows or your sewage system backs up. Let’s take a closer look at what it is, how it works, and whether you should consider adding it to your policy.
What is water backup insurance?
Water backup coverage is designed to protect homeowners who experience a sewage backup or sump pump overflow — two situations that generally aren’t covered by a standard homeowners insurance policy.
- Sewage backup: This happens when wastewater backs up within a toilet, drain, or sink. It’s often caused by a clogged pipe. The mess can overflow, causing damage to the floors and walls and spreading harmful bacteria.
- Sump pump overflow: If you have a basement, you might have a sump pump to help prevent flooding. This device removes excess water and reroutes it away from your home’s foundation. It can be a valuable resource if you live somewhere that gets a lot of rain or your home is located near groundwater. If your sump pump fails, your basement could flood quickly.
Sewage backups and sump pump overflows usually aren’t covered by standard homeowners insurance policies. The workaround is adding a special rider to your policy.
Water backup vs. flood insurance
It’s important to note that water backup coverage is not the same as flood insurance. They’re alike in that flood insurance is also an optional coverage that you can add to your homeowners insurance policy since most standard policies don’t cover flood damage. But there are some key differences.
| Water Backup Insurance | Flood Insurance | |
|---|---|---|
| Is it included in most standard homeowners insurance policies? | No | No |
| What type of damage is it designed for? | • Water damage caused by sewage backups and sump pump overflows • It can also cover water damage caused by a drain, pipe or septic tank | • Water damage related to flooding, which can include flash flooding and storm surges |
| What does it typically cover? | Your home and belongings | Your home and belongings |
What isn’t covered by water backup coverage?
Like other types of homeowners insurance riders, water backup insurance doesn’t cover everything. You’ll likely be on your own if any of the following situations apply:
- Your home is damaged in a flood.
- The damage is caused by water that originated outside of your home; for example, your pool leaks or overflows into your basement.
- You’re seeking reimbursement for routine maintenance or repairs, such as having your pipes serviced or repairing a broken sump pump.
How much does water backup coverage cost?
Rates vary depending on your insurer and level of coverage, but the average annual cost typically ranges from $50 to $250. Limits often start at $5,000 but could be as high as your home’s full replacement cost. It’s always wise to shop around and compare plans before adding any new coverage to your homeowners insurance policy.
Do I need water backup insurance?
Water backup insurance is optional, which means that you’ll need to decide for yourself if it’s a good investment. You’ll want to consider your risk tolerance and whether you live in a home that’s vulnerable to this type of water damage. For example, if you have a basement with a sump pump, the cost of water backup coverage may be well worth it if you experience an overflow. Cleanup costs can add up quickly, causing financial stress.
Why do water backups happen?
Some homes may be at higher risk for water backups than others. Below are some common causes to look out for:
- Clogged or damaged pipes
- Tree roots growing around sewer piping
- Heavy rain
- An old sewer system
- Sump pump issues, which can be caused by power outages, neglected maintenance, or old age
The bottom line
Water backup insurance may be a worthwhile addition to your homeowners insurance policy. The cost is relatively low, and it could prevent you from spending a significant amount on unexpected repair costs. No matter what you decide, reshopping your home insurance could be a simple way to save.
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