Insurance coverage Q&A: Water back-up and additional living expenses
When the water backup endorsement is added to a policy, does the limit affect any other coverages?
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My question is regarding sewer back-up or overflow of sump pump endorsement.
In this situation, the insured has their policy endorsed for a limited amount for sewer back-up/sump overflow ($5,000, for example) and the repairs exceed the limit along with the insured having to stay at a different location due to the sewage.
Are they still able to collect for loss of use or does the contamination exclusion apply along with the $5,000 limit being exceeded?
Thanks in advance for your reply.
— South Dakota subscriber
I’m looking at the ISO HO 94 95 limited water back-up and sump discharge or overflow coverage endorsement, your form may be different. The limit in the form applies only to the coverage for water back-up; it does not change any of the other policy provisions, as stated in the last line: “All other provisions of this policy apply.”
The endorsement makes the water back-up loss a covered loss under section I. Therefore, if the insured’s residence is not fit to live in because of the water back-up issue, then the additional living provisions would apply.
The limit for the water back-up has nothing to do with available limits for additional living expenses; that limit applies only to damages caused by the water backup.
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