Water damage is one of the most common complaints filed by homeowners in Canada every year. These complaints account for about 20% of all the complaints. Fortunately, your homeowner’s insurance will cover most types of water damage.
But, certain cases like water backup due to sewage, sump pump or other water-related issues are not included under your standards homeowners insurance policy. So in these cases, you will need to pay all the repairing-related expenses from your pocket.
To prevent such a scenario, you can always buy a water backup endorsement or add on water backup coverage to your existing home Insurance policy.
This coverage will offer an extra layer of protection against any unexpected sewer line leakage, backup or overflow.
So let’s find more about homeowners insurance water backup coverage and its benefits.
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Water Backup Coverage
Water backup coverage is an add-on coverage that you can add to your existing home insurance policy. This coverage will offer protection against any damage to your property and personal belongings from water backup through sewers, drains, leaks, or overflows from a pump or any other equipment.
However, for the water backup coverage to act, the backup must be due to a covered peril like a broken sewer line, tree root growing out of sewer pipes, broken sprinkler system or HVAC system.
However, any damage caused by flooding will not be covered under this coverage, as you will have to buy a separate flood insurance policy.
What Are The Various Types Of Coverage Offered By Water Backup Coverage?
Water backup coverage will cover expenses for water removal, structural damage from accidental water overflow, the replacement cost of personal belongings, construction materials and labour costs.
Multiple circumstances can cause water to flow back into your property; most of which are always covered under your standard water backup coverage:
- Old and damaged sewer pipes or drains
- Any blockage in your city pipelines
- Tree root
- Malfunctioning appliances
- Overflow of water from a sump pump
- Gutter system backup failure around your home
Water backup and overflow create unhealthy living conditions, so this coverage will pay for removing stagnant water, replacing your personal belongings, repair of the structure of your property, and removal of mould growth caused due to overflow.
In addition, water backup coverage will also pay for loss of use coverage so that the residents can stay in a motel or any other place if their home is temporarily uninhabitable.
Why Is It Necessary To Have Water Backup Coverage?
1. No Standard Homeowners Insurance Policy Includes This Coverage
Most insurance companies offer water backup coverage as an optional endorsement or add-on, which can be included in your standard home, rental or condo insurance policy.
If you do not have this coverage, you have to pay from your pockets the cost for clean-up or any damage caused by a sump pump or other equipment which is not considered a part of the plumbing system or household appliance.
2. Water Backup Can Happen Anytime.
Numerous misconceptions exist about which property will likely have a water backup situation. Even if you live in a hilly area, do not own a basement, or have a flood insurance policy – water backup can happen anytime to anyone, so it is always safe to have an add-on policy.
3. You Are Eligible For Loss Of Use Coverage If Your Home Is Uninhabitable
Mostly a water backup is due to a faulty sump pump. So if there is a sump pump failure, you can still live on your property while it is being cleared and repaired by the expert. However, in rare cases, water backup can make your home unhygienic and unsafe. Therefore if you have water backup loss of use coverage, you will be eligible for coverage.
A common example can be if your home furnace is damaged due to water backup, and it is extremely cold outside, and you cannot heat your home. The loss of use coverage will cover any additional living expenses. It will also include loss of rent if the damage is in your rental property.
Suppose water backup makes your property unlivable, and you have to live with the family for a couple of nights in a nearby hotel or motel. In that case, you can claim for loss of use coverage, and the insurance company will refund the hotel room cost.
How Much Water Backup Coverage Do I Need On Average?
Different limits are available to match the requirements of various policyholders. For instance, consider what you have in your basement. Is there a probability of your basement flooding during a water backup? Do you have expensive items, or is your basement furnished?
You must get in touch with your insurance broker, who will help you with limits that match your requirements. The approximate sewer coverage and water backup cost are $50 to $250 annually. It depends on the policyholders’ limits and their risk of exposure.
How To Prevent Water Backup?
So to avoid any of these circumstances, the best way is to prevent water backup. You can start by properly maintaining your home and its systems. Here are some of the easiest ways you can follow to prevent water backup:
- Remember to run your sump pump every two months
- Clean out your gutters and downpipe weekly
- Place your expensive appliances and other electrical equipment on a platform a few inches above the ground level in your basement. This will prevent any damage to your expensive appliances.
- Use waterproof containers to store valuable items.
- You can install a backflow valve on your water and irrigation system
- You can install smart home devices like:
- Temperature and humidity sensors can notify you of any changes to your home climate.
- Water leak detectors can alert whenever there is a leak in your pipelines
- Smart water shutoff systems help you remotely turn off water flow to your home. This is extremely helpful if there is an overflow in your house and you are not present.
Endnote
Water backup can be extremely harmful to your home structure and personal belongings. The worst part is that no standard homeowners insurance policy includes this coverage. However, with routine maintenance and water backup coverages, you can set this worry aside.
