Wednesday, March 26, 2008

Water Back-up of Sewers and Drains

As spring rolls in to an already saturated Iowa, make sure you know your risk for Water Back-up of Drains.

Water Back-up of Sewers and Drains is an optional endorsement on a standard home insurance policy that provides coverage in the event of water or sewage backing up through the drains or in the event of sump pump failure.  Neither of which are covered perils on a standard home insurance policy.

Typically, the cost for this coverage ranges between $40-$80 per year per $5,000 in coverage and some companies require that a sump pump be present in order to secure this type of coverage.  Also, many companies will not allow a current client to add the coverage during the term of the policy.  In these cases, it can be added at the time of renewal.  Other companies will have a 30 day waiting period before the coverage takes effect after the endorsement is issued.

The coverage provided is broad in nature and will cover contents, structural damage, and clean up.  Some companies have different deductibles for this type of coverage from the Named Perils deductible that shows on the Declaration page of your Home Insurance Policy.  There are some companies, however, that maintain the same deductible across the board.  Contact your Absolute Agent for further coverage questions and deductible options if you already have the endorsement in place.

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