— Virginia Subscriber

Answer: Based on our review of the Commercial Property Enhancement Endorsement GLUK015(01/10), the coverage for back-up of sewers and drains does not have to occur from a problem with the sewer system from off the insured's property.

The coverage applies if there is direct physical loss of or damage to Covered Property caused by or resulting from water that backs up from a sewer drain (from any cause).

Therefore, the cost of the plumbing repairs, excluding the pipe, should be covered up to the $10,000 limit for backup of sewers or drains. (Note that the actual limit in the enhancement is $10,000, not $25,000).

Coverage for detached sewer line

Question: The insured has a BOP policy and purchased an endorsement that covers back up of sewer and drains.

Upon inspection, I found no sewer or drain in the building, but the insured showed me a sewer 10-feet outside the back of building and said this sewer backed up into the building.

Nowhere in the policy or endorsement does it say that the sewer or drain must be in the building, and since the sewer is located on the property, he insists coverage must be afforded. What do you think?

— Ohio Subscriber

Answer: We agree, if the policy does not require the sewer or drain to be in the building — the ISO endorsement does not — and if it can be shown that the backup from the sewer caused the damage, it is our opinion that coverage should be afforded.

Water backup of sewer caused by flooding

Question: We have a water damage claim on a hazard policy caused by back up of sewer due to excessive flooding in the area. Is the damage from the sewer water covered?

The policy is an HO policy with the following language. Exception to C.(6) Unless the loss is otherwise excluded, we cover loss to property covered under Coverage A or B resulting from an accidental discharge or overflow of water or steam from within a: (1) drain, or water, steam or sewer pipe, of the “residence premises”….

Section 1 – Exclusions, 3. Water. This means: a. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge; b. Water which: (1) Backs up through sewers or drains; or (2) Overflows or is otherwise discharged from a sump, sump pump or related equipment…

— Texas Subscriber

Answer: The exception to C.(6) is for the overflow or accidental discharge of water from a sewer pipe off the residence premises. As such, you have an issue of fact; did the sewer pipe off premises cause the loss or was the loss caused due to the pipes on the premises? Note that the water exclusions for surface water and water below the surface of the ground do not apply to loss under C.(5) or (6). Remember that 5 relates to mold or fungus hidden behind walls, ceilings or floors.

However, water that backs up through sewers or drains is clearly excluded, as is flooding. The insured would need to have added the Water Back-up and Sump Discharge or Overflow endorsement HO 04 95 in order to have coverage.

Sewer or drain backup

Question: Our insured has a water backup or sump pump overflow endorsement on his homeowner's policy, which states the insurer covers direct physical loss caused by “water or sewage, which backs up from outside the residence premises plumbing system through sewers or drains.”

A heavy rainstorm occurred, and water entered the residence through the drain in the basement floor.

Because the insured has a radon remediation system installed in the drain, the engineer sent by the insurer reported that the water must “have come into the drain system via the perforated pipe and the drain could not handle the flow. Thus the water backed up onto the basement floor.” The insurer then denied the claim, citing the exclusion for water below the surface of the ground, and then adding that the surface water below the ground entered into the perforated radon remediation system.

We think this is a covered loss and would like your thoughts.

— New York Subscriber

Answer: The insured has paid an additional premium for backup of sewer and drain coverage, and it appears his claim is being denied based on a misreading of the endorsement language.

It does not really matter if the water entered the drainpipe because the pipe was perforated; the water came from outside the residence premises plumbing system and then forced its way up through the residence premises system by way of the basement drain. That is all that is necessary to trigger coverage. The drain's inability to handle the flow (as per the engineer's report) is meaningless — if this were the case then the insurer could deny any loss, for which the insured has paid an additional premium, based on the drain's inability to handle the flow. That is, after all, what essentially constitutes a water backup through a drain.

Backup of sewers and drains extension applicable to gutters?

Question: Can backed up downspouts and gutters that causes interior building damage be covered under a backup of sewers and drains extension of coverage? The claims denial is based on the contention that the downspout and gutter are not part of a plumbing system. The backup was caused by foliage and improperly installed gutter screws. My position is that the form does not say that the drain must be part of a plumbing system, and a gutter and downspout are part of a drainage system designed to move water away from a building.

— Ohio Subscriber

Answer: We agree. A gutter could be considered a drain, and if the policy does not specify that the drain must be a part of a plumbing system, then a loss caused by the backup of gutters could be covered by an endorsement for backup of sewers and drains coverage, provided there are no exclusions or limitations or other language that excludes gutters.

Surface water overflow not covered

Question: My insured has an endorsement for back up of sewer or drain water damage. The endorsement reads “The following additional coverage is added: We will pay for loss or damage to Covered Property solely caused by water that backs up from a sewer or drain. This coverage is included within the Covered Property Limits of Insurance. THIS IS NOT FLOOD INSURANCE. We will not pay for damage from water or other materials that back up from any sewer or drain when it is caused by any flood. Flood means the overflow of surface water, streams or other bodies of water, or their spray, all whether driven by wind or not.”

Insured has a basement office that has a sump pump to keep ground water out of the office. Recent heavy rains in northeast and a clogged water drain caused a pooling of water in a back courtyard/parking lot which then flowed under the back door of the office. An adjuster inspected and noted that the drain was clogged with debris and the water then flowed under the door. This is surface water, but it would not have pooled if not for the clogged drain. The drain was not inside but was in the parking area behind the building. Is this a covered loss?

— Ohio Subscriber

Answer: Because the damage was caused by surface water, the loss would not be covered. There is a difference between water backing up from a drain, which the endorsement covers, and rain water that pools because it cannot go down a drain that is clogged at the surface; the water must actually get into the drain in order for it to backup from the drain.

As you correctly stated, the water in this situation is surface water, and the overflow of surface water is not covered.

Water backup due to treatment plant power outage

Question: We have an ISO form policy. HO 00 03 04-91, special form. The town our insured is in sustained heavy wet snows totaling about 16 inches.

This snow load caused numerous power outages. The power to the waste treatment plant was out. This caused the pumps to stop working thus causing the sewage to backup into our insured's home.

There was no damage to the insured's home from the snow, only the backup of sewage in the basement. They do NOT have the sewer backup endorsement. Is the peril a Power Surge, Weight of Snow or Backup of Sewage? Is there coverage for the interior damage to the insured's home?

— Montana Subscriber

Answer: Neither power surge nor weight of ice or snow would apply in this instance.

Weight of ice or snow must occur on premises, and power failure is excluded when it occurs off premises.

This is a sewer backup, and even if another covered peril was at play, the exclusion section is preceded by the anti-concurrent causation language. So even then, the damage from the sewer backup would not be covered.

Window wells and drainage

Question: Our insured has an HO-3 with a “Backup of Sewers and Drains” add-on endorsement. The endorsement says, “We will pay up to $5000 in total for direct physical loss to property covered under Coverages A, B & C when such loss is caused by water: 1. Which backs up through sewers or drains; or 2. 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?

— Arizona Subscriber

Answer: The purpose of a window well is to let light and air into the basement, as well as serve as a way out in event of emergency. If a window well was part of the drainage system, it would have to drain somewhere else. It is not part of the plumbing or sump system; it is a window well, pure and simple.

See also:

Did snow, ice or water cause the damage?

Water, water everywhere: Flood claim questions answered

After the flooding: 6 tips for vehicle owners and buyers