Water Back Up and Sump Discharge or Overflow is a very common endorsement for home insurance policies. It covers direct physical loss to property covered under the main policy caused by water or water-borne material that either backs up through sewers or drains or overflows (or is discharged from) a sump, sump pump or any related equipment. The coverage does not, however, apply to the direct physical loss of the sump pump or related equipment that is caused by mechanical breakdown. Typically customers with basements and sump pumps or who live in areas where it is common for sewers or drains to back up add this coverage to their policy. Your agent will discuss the limits that would apply to the endorsement with you, but the most common limits are $5,000 or $10,000 depending on how much property is in the path of a possible back up or overflow.
It is important to note that this coverage does not apply in the case of a flood. Most insurers define a flood as the overflow of a stream, river or lake and it is not covered under your regular homeowner’s insurance. Flood insurance is mandated by FEMA and is always separate from your home insurance. For more information or for a quote, talk to your agent and see our flood guide for help in being prepared.