Water is something needed by everyone; people, plants, animals and even the planet need water. Water also is needed in the right amounts; too little water leads to droughts which can lead to loss of crops, wildfires and other things, and too much water causes floods and other damage. Water as a cause of loss is something that can often be confusing as standard policy language deals with flooding, surface water, overflow and backup, with each term having a different meaning. Consequently, coverage varies depending on the determined cause of loss.

Recently heavy rains in Detroit led to flooding, but also led to the failure of sewer systems to handle the water which then led to water backing up through those systems and causing property damage. When that happens, what is the cause of loss—flooding, which as we know is generally excluded; or is it backup of a sewer or drain, which may be covered by the proper form?

Let's look at the basics. A backup is when water reverses direction; it starts to flow down a pipe or drain and then because of some reason, often a blockage, the water reverses directions and goes back the way it came—this is a backup. An overflow is when an area is filled to capacity and then spreads beyond its limits; there is so much water that the pipes cannot hold anymore and they overflow. A sink with the drain plugged where the water is turned on and the sink fills to the brim and then spills water onto the floor has overflowed. A discharge is when water pours from some source. Merriam Webster online defines discharge as: to pour forth fluid or other contents.

Homeowners Coverage

The HO 00 03 homeowners form provides coverage for discharge or overflow of water or steam from within a storm drain or water, steam or sewer pipe off the "residence premises". The "residence premises" is the one-family dwelling where the insured resides, or the two-, three- or four- family dwelling where the insured resides in one of the units, or that part of any other building where the insured resides and is shown in the declarations as the "residence premises". Grounds at the location are also included as part of the "residence premises".

Sewer Pipe

A sewer pipe or storm drain that is off the "residence premises" would therefore be any pipe that is outside of the plumbing systems of the structure itself. Since grounds are part of the "residence premises", the pipe that runs under the yard out to the sewer main in the street would be on the "residence premises". Once that pipe reaches the sewer main in the street though, that would be considered a pipe off the residence premises.

Storm Sewer

A storm sewer is designed to drain excess rain and groundwater from paved streets, sidewalks, and roofs. Street gutters lead the water into the storm sewer. There are storm drains that mix runoff with sewage and these are known as combined sewers. The storm drains on private property collect the water from the gutters of the house and channel it to the main storm drain. A sump pump may pump water from the house into the yard or it may pump it out to the street. What is going to be critical for coverage is where the water backs up; does it back up within the city storm drain or sewer system, or within the dwelling system?