When is water backup and sump overflow coverage triggered?

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: Every homeowner dreads damage caused by water, especially from a backup or overflow. This week’s Q&A discusses that scenario at an insured’s home.

Question: Our insured has a homeowners insurance policy (HO 04 95) with Limited Water Back-up (sic) and Sump Discharge or Overflow coverage. 

Does this coverage apply to off-premises backup (the entire neighborhood’s sewer effluent backing up through the insured’s sewer line into their basement)? Or is it meant to cover an overflow from a clog on the insured’s premise by effluent created by the insured (overflows from toilets, showers, etc.)?

— New York Subscriber

Analysis: Water back-up or overflow are generally excluded in homeowner insurance policies. Thankfully, the Limited Water Back-up and Sump Discharge or Overflow endorsement can cover certain losses; however, since back-ups can have multiple causes, knowing exactly which back-ups are covered in a policy is essential.

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

Related:

• To learn more about FC&S Expert Coverage Interpretation, visit our website.
• Sign up to receive our weekly newsletter, FC&S Coverage Insider, to stay up-to-date on insurance coverage issues.
• Discover our resources on commercial lines and personal lines on the NU Resource Center.
• Get 10% off your subscription to FC&S Expert Coverage Interpretation just for being a PC360 reader! Complete the free trial form or call 214-356-9145 to learn more or get started today.