Griffin-Owens and Associates

There are few topics that are more boring to most people than the contractual differences between one homeowners insurance policy and another.  Unless, you have just suffered a loss and discovered that you don’t have the right coverage or you don’t have enough coverage.  Not all homeowners policies are the same.  Different companies will offer different coverage and some will limit their exposure to certain kinds of losses.  Water losses are notorious for being expensive to repair.  Sewage or water back up losses are the absolute worst kind of loss other than a total fire loss, and I think some people would say that they are worse.  The reason is that when you get sewage or “dirty water” in your house it can be very difficult to get it out.  It seeps behind walls and into all wooden surfaces, it often can bring bacteria that can cause mold and other problems, plus it smells really bad.

Most insurance companies offer customers an endorsement called “Sewer and Water Back up coverage”.  This endorsement usually covers water that backs up through drains and sump pumps plus, it covers backup of sewage pipes.  Now, I am not talking about a plugged up toilet here.  Think more in terms of the large pipe out in the yard that takes all of your sewage to the main county line.  If that pipe gets backed up or dislodged and the contents of that pipe come back into your house through a breakage, a drain, a sink or a toilet, then you have a problem.

Some Insurance companies only provide very limited coverage under their endorsement.  Some major carriers who claim to receive top ratings for customer service only provide $10,000 of coverage, others will not cover back ups from failed sump pumps. If you are trying to repair damage to finished areas of your home from a sewage loss, you can expect that you will be replacing carpet, furnture, dry wall and paint plus you will have a huge bill just for getting the dirty water out of your house.  You will want to have at least $25,000 of coverage and perhaps much more. 

Most companies will offer customers options for the limits of coverage for sewer and water backup.  Some companies will permit customers to purchase coverage up to the full value of their home.  This is a very important difference and one that insurance consumers need to be aware of when they are shopping policies.  Just because one policy is less expensive than another does not necessarily make it a good deal.  As an insurance consumer, you need to ask questions and read your policy.  Your home is your most valuable investment and you should understand the insurance on it before you suffer a loss.