What if instead of bringing May flowers, those April showers bring water into your basement and your sump pump fails? Will your homeowners insurance cover this? Believe it or not, most standard insurance policies do not cover sump pump failure and sewer backups. Springtime is when the ground begins to thaw causing the soil to be saturated with water. If this is combined with heavy rains you could easily have water coming into your home. Just a few inches of water can cause thousands of dollars in damage to your carpeting, walls and furniture.
Fortunately, most major insurance carriers offer affordable riders for sump pump overflow and sewer backup coverage. Just like any other device with working parts, a sump pump needs regular maintenance. It’s a good idea to put servicing your sump pump on your spring cleaning ‘to do’ list.
In the United States, flood insurance is offered through the federal government and losses caused by flooding are excluded from homeowners insurance. Water coming in above the foundation is considered flooding, but in sump pump failure water comes from the piping below the foundation. Therefore, you still need a rider on your policy even if you have flood insurance.
My advice is if you have property in your basement worth more than $2,000, you should contact your insurer to find out exactly what your homeowners policy covers and what riders are available.
At Rodgers & Associates we are always thinking of ways to provide more security to our client’s financial lives. We also help our clients evaluate life insurance and long-term care insurance in addition to property and casualty insurance.