Does homeowners insurance cover water damage from sump pump failure

When water starts rising, you count on your sump pump to handle potential home damage.

flood. Stay or run? image by mdb from Fotolia.com

It might be one of the worst feelings in the world: Your basement is flooded and there’s no sound coming from the sump pump you installed to stop the incursion. For people living on flood plains, adding flood insurance is common practice, but even they might not know that neither flood insurance nor a homeowner’s policy covers sump pump failure. Avoid the stress associated with sewer back-ups, seepage issues or flood waters by purchasing targeted pump failure insurance coverage.

Sump Pumps

Howard D. Yoder patented one of the first portable sump pumps in 1932, according to HGTV.com. The machinery was designed to pump water from a flooded basement after an automatic water sensor detects the presence of water and jumpstarts the pump. A properly functioning unit drains water from a pit to keep surrounding areas dry during storms and sewer backups. Maintenance is critical to a sump pump’s function. If debris gets into the unit, it can block the sensor and prevent the unit from working properly. Homeowners living on flood plains often buy generators to make sure power losses don’t prevent a sump pump from operating.

Flood Insurance

The National Flood Insurance Program was created by the U.S. government to protect people living in flood-prone areas because insurance companies exclude flood coverage when writing and issuing homeowner’s policies. Your sump pump can do only so much to protect your possessions, which is why insurance companies began writing sump pump failure insurance coverage. A homeowner must purchase this coverage in addition to buying a homeowner’s policy if he fears water damage to his home can wipe out the contents of his basement where furnaces, air conditioning units and refrigeration systems -- not to mention your storage -- often reside.

Sump Pump Coverage

Sump pump failure coverage takes the form of a rider or endorsement attached to a standard homeowner’s insurance policy. Premiums are relatively cheap, and you can receive up to $10,000 to replace or repair anything resulting from a flood or backup and pump failure, including pipes, drains, sewer fittings and the aforementioned appliances. As long as fluid transfer threatens a property, the sump pump fails to respond and the area is breached, you can claim it and seek reimbursement.

Your Responsibility

Submitting an insurance claim for sump pump failure requires due diligence so claims adjusters can prove your case to underwriters. Your pump will be inspected. If it isn’t found to be in good working order or if it’s clogged with debris because you failed to keep it operational, your claim could be denied based on improper maintenance. You could also face an insurance premium increase. “If you suffer a water backup due to sump pump failure or a sump pump’s inability to handle water flow, you will incur a surcharge,” Insurance Agent Susan Moore advises her Buffalo Grove, Illinois, clients.

References

Writer Bio

Based in Chicago, Gail Cohen has been a professional writer for more than 30 years. She has authored and co-authored 14 books and penned hundreds of articles in consumer and trade publications, including the Illinois-based "Daily Herald" newspaper. Her newest book, "The Christmas Quilt," was published in December 2011.

But what if the flooding occurs due to sump pump failure? Sump pump failure can be either mechanical or electrical (due to a power outage), and the circumstances of coverage depend on each individual situation. Here are some general guidelines that will help you understand when you may qualify for insurance coverage for sump pumps.

SUMP PUMP INSURANCE RIDER
Some homeowners assume that if their sump pump backs up, the damages will be covered under the “Sewer and Drain Back-ups” portion of their policy. But most sump pump failure is not covered under regular homeowners insurance policies unless you specifically add the appropriate rider. This rider covers you if the sump pump stops working due to a power outage, and may or may not provide coverage for mechanical failures.

Even if you add a sump pump rider to your insurance policy, you will need to take extra precautions to ensure that you will be covered if the pump fails and results in water damage. When you make a homeowners insurance claim, the adjustor is required to do his or her due diligence, and that means that your sump pump will be inspected. If it is not found to be in good working order or if it’s clogged with debris because if improper maintenance, your claim could be denied. Not only that, but you could face an increase to your insurance premium.

Depending on your insurance company and the circumstances surrounding the flooding, the dollar amount that is covered in your situation can be low. The damage to your property and the resulting work to fix it may not be fully covered under your policy.

TAKE THE RIGHT STEPS
If you are worried about basement flooding and are considering adding a sump pump rider to your insurance policy, first consider taking the following steps to help prevent water damage from happening in the first place:

• Regular Maintenance: Routine maintenance and checks on your sump pump can go a long way. You are more likely to spot problems before they can impact you, and you’ll be ensuring that your system is kept in good working condition. It’s especially important to perform these checks before a major storm or as snow begins to melt in your area. Again, if an insurance company finds that the reason for pump failure was easily preventable, you may not be covered under your rider.
• Battery Backup: Install a sump pump battery backup system to provide peace of mind even in the event of power failure. Battery backups for sump pumps ensure that even if utility power is not available because of a power outage, your pump will continue functioning. Because most sump pump failures are electrical and not mechanical, installing a battery backup system is one of the most effective ways to avoid pump failure.
• Power Generator: If you live in an area that frequently loses power or is unusually prone to flooding, you may consider adding a generator to your home.

Every homeowner wants peace of mind when it comes to protecting their property and their family from water damage. But insurance isn’t the only way to acquire that peace of mind. Taking some practical steps can help you prepare for the worst.