Water Backup Coverage: How Does It Work?

Water Backup Coverage

Asset Protection

Optional Coverage

Property Insurance

Alice Yao | Updated August 20th, 2020

When it comes to water related damage in your home, finding out the cause of the damage is essential in determining insurance coverage.

Your homeowners insurance provides coverage for sudden and accidental water damage that originated from within your home, such as a pipe burst in the kitchen or bathroom. However, it does not include coverage for damage as a result of either sewer backup or sump pump failure.

In this article, we will go over the optional water backup coverage that you can add to your homeowners policy for additional protection.

Illustration of sewer line underneath a house

How does water backup coverage work?

Just like its name, water backup coverage protects your home in the event that water backs up from your sewer line, such as water backing up from your toilet due to a clogged sewer line. 

In addition to sewer line backup, it provides coverage for water damage as result of sump pump overflow or failure. 

What benefits are included in the coverage?

First and foremost, this coverage will pay for emergency and temporary repairs to mitigate further damage to your home. After mitigating the damage, the coverage will reimburse you for:

  • Debris removal
  • Restoration 
  • Repair or replacement of damaged property within your dwelling
  • Additional living expense

Keep in mind that the amount of benefits must fall within the coverage limit and that there is typically a deductible for this coverage.

What is the coverage limit and deductible?

Most insurance companies offer coverage limits ranging from $5,000 to $25,000. This is the amount that insurance companies will reimburse you to cover a loss resulting from a covered water backup claim. 

The common deductible for a water backup claim is $500. This is a separate deductible from your standard homeowners policy deductible. Remember, a deductible is the out-of-pocket expense you have to pay before your policy pays out in a claim.

How much does water backup coverage cost?

Most insurance companies offer water backup coverage at between $25 to $100 a year, depending on the coverage limit. 

For an older home that has aging service lines, water backup coverage is highly recommended, especially given its relatively inexpensive premium. 

In specific cases, your insurance company has its own guidelines for this type of coverage. We always recommend talking to your insurance agent to discuss any specific coverage in detail. Working with an insurance agent is the best way to make sure you are properly covered.

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