For most people purchasing homeowners insurance is just another obligatory step in the home buying process. Homeowners find themselves putting their name on yet another dotted line hoping that the standard homeowners policy they just purchased ensures the complete safety of their new investment. Homeowners policies, however, contain a basic exclusion for water which backs up through the sewer or drains, leaving you responsible for the physical damage, contents, and clean up. Coverage can be purchased, and is often times included in a package endorsement.
Water backup claims occur most frequently during the spring and fall seasons when rain fall is heaviest. The damage can be devastating, easily amounting to tens of thousands of dollars of damage. The water back up coverage endorsement covers water damage and cleanup that would otherwise be excluded from the policy.
In the event of a water backup problem, your basement is the most susceptible area for water damage. People often see the vulnerability when the basement is finished, however they often overlook the amount of damage that can occur when it is simply used for storage. Beyond just the damage that will occur to these physical objects, the basement of a home often houses the heating, cooling, and in some cases refrigerating equipment for the rest of the home. The average water back up claim is $10,000 and even policies that include water backup coverage often have a coverage limit of $2,500. This leaves you with $6,500 of damage to repair out of your pocket.
Water in your basement can bring on a litany of issues, from water damage to your home and contents to mold growth. Purchasing additional water backup coverage is a wise idea to help offset the costs associated with this type of claim issue. The additional cost for this coverage is nothing compared to the cost of cleaning up a basement full of water, especially if the basement is finished. Be sure to contact your agent to discuss whether or not you have water backup coverage on your policy.