The Hidden Risk Most Homeowners Ignore—Until It’s Too Late!
Imagine waking up to a flooded basement—not just water, but raw sewage. Your family’s belongings, files, and even your home office are ruined. The cleanup is overwhelming, and the costs skyrocket. Now, ask yourself: does your home insurance actually cover sewer backup damage? For most homeowners—and even business leaders who manage real estate—the answer is a surprising “no” unless you’ve taken specific steps to add this coverage.
Sewer backup is not a rare, one-in-a-million event. It’s a real risk that can hapen to anyone, often triggered by city maintenance, aging infrastructure, or severe weather. The aftermath? Thousands—sometimes tens of thousands—of dollars in repairs, not to mention the emotional toll and business disruption if your home doubles as your workplace.
Why Standard Home Insurance Isn’t Enough
Most homeowners insurance policies do not automatically cover sewer backup or water damage from a backed-up drain or sump pump. These incidents are typically excluded unless you’ve added a specific endorsement or rider to your policy. Even then, many policies cap coverage at $25,000—an amount that can fall far short when you consider the cost of removing sewage, replacing flooring, drywall, furniture, and electronics, plus the expense of temporary relocation if your home is uninhabitable.
A Client of Mine
A client of mine, a small business owner operating from his home, suffered a sewer backup after city maintenance work in his neighbourhood. The damage to his home office and inventory exceeded $40,000. His standard policy only covered $25,000, leaving him with a significant out-of-pocket expense. Had he reviewed his policy and increased his sewer backup coverage, the financial impact would have been minimized.
What Sewer Backup Coverage Actually Protects
Sewer backup coverage is designed to protect you from the financial fallout of a backed-up sewer, drain, or sump pump. It covers:
• Removal and cleanup of sewage and water
• Damaged furniture, appliances, and flooring
• Repairs to drywall and other structures
• Temporary relocation costs if your home is uninhabitable
What’s Not Covered
Sewer backup endorsements do not cover losses due to owner negligence (like failing to maintain your sump pump) or damage caused by flooding—flood insurance is required for those events.
Take Action: Don’t Wait for Disaster
- Don’t let a sewer backup become a financial and emotional nightmare. Take these steps today:
- Review your current home insurance policy.
- Ask your broker about sewer backup coverage and whether it’s right for you.
- Consider increasing your coverage limits if you have a finished basement or valuable belongings.
Reach out for a free policy review or broker recommendation if you’re unsure.
If you need help finding a trusted insurance broker or want a second opinion on your coverage, email me at Mike@ShusterRealEstate.com.
I can connect you with an experienced professional who will ensure you have the protection you need.
Home Insurance Secrets: What You Need to Know About Sewer Backup
