All homeowner policies cover damage caused by water escaping from a plumbing or heating device. Ground water, however, is usually excluded under standard homeowner policies. Let’s look at a couple of ways coverage can be secured for ground water damage:
Flood insurance is a program for providing coverage for some types of ground water. For a flood policy to respond, there must be a general inundation of the land. A flood policy is very limited in regard to damage in a basement area. Flood insurance can be expensive and often only purchased when required by a financing contract.
Water Back Up Coverage
This popular homeowner endorsement provides coverage for water that overflows a drain or sump pump. The coverage can be crucial if you’ve finished your basement area and are relying on the sump pump to protect walls, carpeting and contents from damage when the sump pump fails. Water back up coverage is a must for finished basements with a sump pump.
Contact The Barndt Agency for a thorough discussion of water damage concerns and coverage solutions. We provide the best information so you can make confident decisions regarding your coverage.