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A sump pump failure might occur when it is unable to handle a flood or a sudden downpour of rain. While the standard policies for homeowners might not provide coverage for the damages, few insurers offer drain or sewer backup.
Since a standard insurance policy doesn’t cover a sump pump failure, you need to add this kind of coverage in your homeowner’s policy in the form of an endorsement.
There are some things that the endorsement will cover and some things that it might not be able to cover (no matter what form of actions you take). These intricacies will be discussed below. We’ll look into the water backup coverage, and how you could use it to your advantage to insure your sump pump and basement.
Table of Contents
What is Water Backup Coverage?
If your sump is working round the clock, then the odds of it breaking down is quite high. This can cause your basement to flood in a blink of an eye. At the end of the day, you are not only dealing with a broken sump pump but also, a damaged basement. Moreover, the restoration bill can be alarming. It can range anywhere between $10,000 to $50,000, depending on the extent of the damages. So, to reduce the burden, the water backup coverage decreases the cost of repairs caused by an overflowing pump.
Sometimes the standard policies for homeowners do not cover issues related to the sump pump, you must consult with your insurance agents to get a better idea. If the coverage isn’t included in your insurance policy, then you can opt for it as an additional endorsement. You can also add to the coverage to cover the expense of the sump pump. The endorsement can be between $25 to $50 every year. But, it does not cover the cost of repairing the device, you will have to pay the plumber out of your pocket.
Should I get Water Backup Coverage?
Sump pump failures are prone to occur at the worst possible moments, and you will most likely be left in knee-deep water in the basement. Furthermore, you might face a restoration bill of around $10,000 later on to repair the damage done by few inches of water. The bill might even extend up to$10,000 to $50,000 if the damages are substantial. However, if you have elected to add the water backup coverage in the policy, you can rest easy.
This coverage will decrease the cost of your repairs that might arise from your overflowing sump pump. Keep in mind that the standard policy for homeowners might not automatically include overflow coverage. Hence, homeowners and renters need to consult with their insurance agents to determine if the policy includes water backup coverage. If it isn’t included, then you can add in the optional endorsement.
What are the Limits of Water Coverage?
The water backup coverage comes with its limits, which need to be taken into account. These include the type of materials that are kept in the basement. Keeping valuable and irreplaceable items in the basement of the house requires a higher limit. Lower limits are applicable for a newly built basement or one that is used as a storage area. Sump pump failures can happen anywhere, even to those who don’t have a basement in their property and live in a dry area.
Even if you have a separate insurance policy regarding flood, we still strongly recommend adding the water backup coverage.
What Does The Endorsement Include?
If your sump pump fails due to an overflow of water in the basement, the water backup coverage in the endorsement will cover the property damage. Also, materials destroyed in the floodwater and the cost of removing the water will be covered by this additional option.
You can also opt for more coverage to cover the cost of the damaged sump pump. In this case, the endorsement of equipment breakdown will cover the cost of your sump pump. It might range from $25 to 50$ per annum.
What Does The Endorsement Not Include?
It is important to keep in mind that the water backup coverage will not cover the price of replacing or repairing the broken sump pump. You need to pay for the plumber as well as for the sump pump installation. The installation cost can range from $490 to $1,170 including a submersible sump pump.
How Can I Prevent Water Backup From Occurring in My Home
To prevent water from encroaching into your house, you can apply some of the following pointers.
- Install a generator or a backup battery. These will aid during power outages.
- To keep the rainwater away, use window well covers
- Regularly maintain and de-clog the downspouts and gutters. Clogging can cause the water to overflow.
- Install a secondary backup sump pump.
- Make sure that the landscape surrounding your house is sloping downhill and away from your house
Conclusion
Insurance isn’t something that one deals with on a daily basis, so it is helpful to have an insurance agent that you can trust with your sump pump issues. The agent will also recommend how to provide coverage with minimal costs.
