What Is Sewer Backup Insurance?

Sewer repair and backup damage can get expensive.

Every year Americans suffer millions of dollars in damage when heavy rains or blockages cause sewers to back up into their homes or basements. One incident can require thousands of dollars in repairs according to the Insurance Information Institute.

Not Standard Coverage

Damage to the home and furnishings caused when sewage backs up into the home is not covered by standard homeowner's insurance. Homeowners must buy Insurance protection separately or as an additional endorsement to an existing homeowner's insurance policy.

Costs and Coverage

Available in increments from insurance companies of $10,000 to $50,000, policy prices vary according to the amount of insurance. The Insurance Information Institute notes that such policies usually cost no more than $40 to $50.

Rising Problem

According to the Civil Engineering Research Foundation, incidents of sewer backups are increasing at an annual rate of 3 percent. The aging of the nation's sewer systems and of the homes they serve serves to increase the chance of a backup. However, only 55 percent of homes have insurance that covers damage from sewer backups.

References

• Insurance Information Institute: Sewer Back Up
• AmFam Insurance: Sewer Back-Up Insurance
• State Farm: Sewer Back-Up Losses
• California Department of Insurance: Americans Unprepared

Resources

• Insurance Information Institute
• National Association of Insurance Commissioners