Does Homeowners Insurance Cover Sump Pump Failure? (Explained)

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 back up.

Since 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.

Does Homeowners Insurance Cover Sump Pump Failure

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 $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 the 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 require 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.


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.

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