Is Water Backup Coverage always needed ?

[s002wjh]

just curious, for house build around 2008, with good sump pump, pvc pipe and on a slight higher elevation. do ppl always recommend getting water backup coverage? my understand water backup only cover sewerage backup not water damage due to sump pump failer etc?

 

[LostDollar]

Not an agent.

My house is on the highest elevation in its subdivision.

I thought I had sewer backup but my policy reads:
Escape of water from sump/sump pump drain

I probably started carrying that coverage over 30 years ago with a different house and different carrier, at the recommendation of an insurance agent--either an overheard conversation or a casual comment made in passing.

I have never needed it. The rider costs $99 per year on current policy.

The agent had some very specific reasons for recommending that coverage but at 30 years ago I don't remember what they were. Water damage is ugly and I'd rather have the insurance than not.

No idea what the broader spectrum of agents would recommend today.

 

[fed up]

Water backup is for a clog in the drainage system where water "backs up" through the commode or sink. It should not be confused with sump pumps or water from the outside ( rain runoff). A back-up of commode water is not something that you ever want to deal with. it is recommended because it is not standard coverage of a policy, it is inexpensive, and an indication that your agent is doing a good job. It eliminates the "I thought I was covered for that" conversation after a loss

 

[mplsmm]

I am an agent but I have my own back up story. There was a bad storm and the city sewage plants generators failed and then had a huge surge that back pumped sewage into the houses on a certain road. Most of the houses didn't have a basement, a few of us had coverage, the rest were out of luck. The sewage filled my entire basement with 3 ft in minutes. I went down to look because I heard my sump pump kick on. It was trying to pump and it couldn't keep up. It was only in the basement for 10 to 15 minutes and it all sucked back out when the generators ki ked on but the smell was awful. I assumed the city would cover it but when I went there they said they have to allow you to sue them and they weren't paying a dime because then they would have to pay for everyone with damage and that would bankrupt the town. Small town. The city clerk told me it wasn't the cities problem if I didn't have the foresight to have sewage back up. I did, with the crappiest company known. My 30k in receipts got me about 6k with a lot of work filing claims and arguing for everything. The adjuster didn't want me to clean anything until he got there several days later. It was 85 degrees out. It stunk so bad. He was arguing that it could be rain water, he had to see it. Heck,, you could smell it. Finally when he got there, he wouldn't even go downstairs. He had me take pictured for him.. They took forever to pay and generally sucked all around. I won't say names but my agent was wearing khakis and he sounded hideous. Now I always have at least 25k coverage.

 

[adjusterjack]

The standard HO-3 exclusion reads:

Water Damage
Water Damage means:
a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind;
b. Water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or
c. Water or water-borne material below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure;
caused by or resulting from human or animal forces or any act of nature.
Direct loss by fire, explosion or theft resulting from water damage is covered.

The buy-back coverage is typically written as follows:

Water Back-Up of Sewers or Drains COVERAGE We insure for direct physical loss, not caused by the negligence of an "insured", to property covered under Section I caused by water, or water-borne material, which: A. Backs up through sewers or drains; B. Overflows or is discharged from a: 1. Sump, sump pump; or 2. Related equipment;

But continues to exclude back up caused by anything related to flood and below ground water.

The coverage can be purchased separately or as part of a catch-all endorsement that enhances a variety of the policy features.

As always, read your policies and forms, as wording may differ between companies that use proprietary form.

 

[adjusterjack]

My 30k in receipts got me about 6k

Why?

 

[mplsmm]

Short answer, they suck. Long answer was the basement was unfinished and they felt removing all the drywall was excessive. They thought we should cut to the damaged part and patch. They were only allowing wood to be replaced to the sewage line but it's hard to pull out part of a 2x4 and replace. We didn't want it patched in. They felt cleaning the ac/furnace was maintenance and not necessary. They paid ACV on contents. I also had business policies with them for my retail store and they felt that some of the items in my basement must really be for my retail location and business property had a maximum of $250. My retail location was an ag store like tractor supply and we lived in the city with only one dog so no livestock or anything. But if I had a dog dish or cage in my basement that must be supplies for my store. They wouldn't pay for any household tools, packing supplies, anything that could have been bought from our store or could be used in our store. They literally nit picked and wore me down. Carpet shampooer, here is $15, when you buy another one send the receipt and we will send you an additional $50 in 4-6 weeks. They acted suspicious and were ridiculous. I considered myself grateful to get that 6k and glad I never had a real claim with them. My husband did the work and some friends helped. The wood and sheetrock in the dumpster stunk up the whole neighborhood. It was bad. My agent was smarmy too. Every time I called all he would say was well you should have asked about x or told me you might need x.

 

[adjusterjack]

Long answer was the basement was unfinished and they felt removing all the drywall was excessive. They thought we should cut to the damaged part and patch.

That's standard. It's an easy repair. A new coat of drywall compound can be textured to match the rest of the wall.

They were only allowing wood to be replaced to the sewage line but it's hard to pull out part of a 2x4 and replace. We didn't want it patched in.

The studs and sill plates shouldn't have needed any replacement if dried out thoroughly. They could have been sprayed with a preservative if needed. This was not a long term leak that rots the wood.

They felt cleaning the ac/furnace was maintenance and not necessary.

Depends on how much somebody was wanting for the cleaning. I would have allowed $100 for an hour and some detergent.

They paid ACV on contents .Carpet shampooer, here is $15, when you buy another one send the receipt and we will send you an additional $50 in 4-6 weeks.

That's how contents Replacement Cost works. ACV up front, the balance when the item is replaced. It's written that way in all homeowners policies.

I also had business policies with them for my retail store and they felt that some of the items in my basement must really be for my retail location and business property had a maximum of $250. My retail location was an ag store like tractor supply and we lived in the city with only one dog so no livestock or anything. But if I had a dog dish or cage in my basement that must be supplies for my store. They wouldn't pay for any household tools, packing supplies, anything that could have been bought from our store or could be used in our store.

That's something I would have put up a big fight for. Depending, of course, how much of that stuff you had at home. If you kept many thousands of dollars worth of stuff that was business related, that should have been addressed on the business policy.

 

[mplsmm]

I get how ACV works. They were giving paltry amounts up front and taking forever to give anything more and out of all the receipts I turned in, they never accepted a single one. We had zero for labor. We only wanted reimbursement of materials. They wouldn't pay for the furnace company to do a service call and clean. They denied tool boxes, all tools, all cleaning supplies etc. Normal everyday stuff. Because we owned a store and supplies could have been used there. It took me weeks to get even 6k from them, it would have taken months to get the other 4k. Not even worth it. Who has time for that? Well, you might. We did like they hope, just cut your losses and move on. It's just a story I tell that involves something other than the usual sump pump failing back up story and a reason I recommend 25k minimum if the basement is finished.

 

[marindependent]

It might not always be needed but in general I try and offer it. As fed up said you are not going to want to deal with sewage spilling into your house. Also the damge from one of these really bad situations can be astouding, especially if the clients are out of town on vacation.

Question for you, you mentioned many of your home systems, but did you failed to mention the situation and age with your sewer latteral and sewer main line. Also do you have a sewer backflow preventer?