Insurance coverage Q&A: Backups, overflows, sewers and drains
Review the difference between an overflow and backup and how they influence water damage claims in Louisiana.
We are starting to see an influx of claims where the loss report states the plumbing backed up into the sinks, showers, and/or toilets. Some of these claims have ensuing water damage to the immediate areas (drywall, flooring, etc.) and some with no ensuing loss at all. With or without ensuing loss, coverage remains in question under the DWG and HO policies based on the exclusion and anti-concurrent causation language. Thus, it is very important to ensure we are operating on the proper definition of “backup” and “overflow.”
The DWG-E100 (Louisiana Amendatory Endorsement) does not change exclusion A.3 in either policy.
If a drain line in the home fails and causes water to back up through the drain, would this be considered a “back up” or an “overflow”?
Based on the DWG language, this type of claim would not be covered based on the following policy language:
GENERAL EXCLUSIONS
A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.
3. Water damage, meaning:
b. Water which backs up through sewers or drains or which overflows from a sump.
Under the HO language, we would have a similar denial.
— Louisiana Subscriber
The issue of water backup and overflow is quite complicated. A lot depends on the particulars of the given situation since the policy language is particular about where exactly the water is coming from. The first thing we need to do is define terms, as that’s where the problem lies.
An overflow is when water exceeds the boundaries of a container; for example, an insured is washing dishes in the sink and runs out to chase the squirrels away from the birdfeeder; the insured comes back in only to discover that she left the water running and the drain got stopped up and water ran all over the kitchen. The water exceeded the boundaries of the sink. It couldn’t go forward or backward, it just overflowed.
A backup is when water reverses directions, and goes back in the direction it originated from. Water from the shower, sink or toilet runs down the sewer or drains away from the house but on the way, encounters tree roots blocking the pipe. The water cannot go forward, so it reverses direction, backs up and runs in the opposite direction from where it was headed, back to where it originated from. The water then comes out of the tub/sink/toilet that it originated from. That is a backup; the water must reverse directions and go back the way it came.
It’s also important to identify what is a sewer or drain. When terms aren’t defined in a dictionary courts will turn to a standard desk reference as that is what is available to most insureds. Merriam-Webster online defines sewer as: an artificial usually subterranean conduit to carry off sewage and sometimes surface water (as from rainfall) and a drain is defined as: a means (such as a pipe) by which usually liquid matter is drained. Both sewers and drains are carrying water away from the premises. Plumbing, on the other hand, is: the apparatus (such as pipes and fixtures) concerned in the distribution and use of water in a building. Lastly, sump is defined as: a pit or reservoir serving as a drain or receptacle for liquids.
Now that terms are defined you can work with any given policy language and the details of the loss to determine coverage. If the water simply exceeds the boundaries of a container, such as a sink or tub overflowing because the insured left the water running, that is an overflow. The exclusion is particular to an overflow from a sump, sump pump or related equipment, not the bathtub. So if the sump pump quits working and is not pumping water out of the basement, the overflow of the pit and the resulting damage is not covered. However, if the tub overflows and damages the property, that would be covered.
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