Flood, sewer backup, ground water, OH MY!
Posted on 21. Sep, 2009 by Manu Sharma in Market Insights, Partners
Make no mistake, heavy rainfall and the changing weather patterns have been a nightmare for insurance companies and their clients. The back-up of sewer systems into your basement is no joking matter.
When the city sewer system fails and the water has no where to go, the backing up of that water into your home can cause serious damage and contamination. However, not all water damage is the result of sewer back-up. Water coming in through foundation walls, window wells, seepage and leakage is considered “flood” or “ground water” and is not covered under most home insurance policies.
Coverage can be purchased under most insurance policies for broad water coverage which specifies coverage for failure of a sump pump or sewer back-up. Insurers charge their premiums based on location and past water losses normally tracked by postal codes. Coverage may be limited in high risk areas where there have been problems in the past, coverage can range from a pre-set maximum limit to the full building limit under your insurance policy.
The cost for sewer back-up coverage can range between insurance company, type of coverage and area of the city – but if you qualify for the coverage, you should seriously consider purchasing it.
Everyone should review their policy and take note of any limitations to the coverage and contact their insurance broker for more information, they are there to help you. Every situation is unique, so if you have questions, please contact your insurance professional.
Contributed by:
Cory Young
Rhodes & Williams Insurance Brokers
1050 Morrison drive
Ottawa, ON K2H 8K7
website: http://www.rhodeswilliams.com/
