Our HO-3 insured purchased endorsement HO 04 95 10 00, “Water Back Up and Sump Overflow.” Recently he suffered a back-up of water into his basement. The direct damage was $8,000. In addition, the insured had to spend one night in a hotel at a cost of $100.

The insurer took the $250 deductible from the $8,000 loss and then paid the endorsement limit of $5,000. However, it is denying the $100 claim for the hotel bill. Their contention is that $5,000 is the maximum payable for all claims due to water back-up.

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