The location of damaged windows as well as the details of the incident may determine whether or not insurance coverage applies. (Photo: iStock) Analysis brought to you by the experts at FC&S Online, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.
Question: Our insured has a homeowners' policy (HO-3) with a "Backup of Sewers and Drains" add-on endorsement. The endorsement says, "We will pay up to $5,000 in total for direct physical loss to property covered under Coverages A, B & C when such loss is caused by water:
- Which backs up through sewers or drains; or
- Which enters into and overflows from within a sump pump, sump pump well or other type of system designed to remove subsurface water which is drained from the foundation area."
The insured has a basement window with a window well that contains a thick layer of pea gravel for drainage. Our argument is that this is not "a system designed to remove subsurface water" and coverage would not apply if water accumulates and runs through the window, or even through the foundation area. What is your opinion?
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