Water backup insurance

If you’ve ever experienced a water backup in your home, you know what a mess it can create. Water backups can occur when a drainage system simply can’t handle unexpected volumes of water from a major rainstorm or a sudden snow melt. The waste water flows back, through the pipes, into your home. Sewage coming into your home can cause extensive damage, not to mention serious health risks. Immediate cleanup is required, and can be very expensive.

While there are some steps you can take to prevent water backup damage, such as installing a sewer backwater valve, the only way to financially protect your family and home against water backup damage is to buy insurance.

In North America, most home insurance providers let you add water backup coverage to their policies. At Square One Insurance Services, we automatically include water backup insurance in all our policies. No paying extra. To learn more about water backup insurance, review the information provided below.

Does home insurance cover water backup damage?

If you’re insured with a traditional home insurance provider, you may discover that water backup is excluded from the base policy. Often it’s available as a rider at an additional cost. In some areas, the risk of flooding causing water backup is so high, that insurers will only add water backup coverage in small increments, up to a specified limit. This limit may or may not be sufficient to cover the cleanup, let alone the replacement of damaged goods. Often drywall and carpets will need to be torn out, and replaced. And think about the cost to replace all of the belongings kept in your basement.

At Square One, our home insurance policies automatically cover loss or damage caused by water backup. No paying extra. In fact, you get one of the most comprehensive policies with us.

What does water backup insurance cover?

If a sewer backs up, causing freshwater or wastewater to enter your home, water backup insurance is designed to cover the cleanup. If your home insurance policy settles losses on a replacement cost basis, your policy will also pay to replace your damaged property. Other policies provide coverage on an actual cash value basis. If that’s the case, your policy will pay only the depreciated value of any damaged items.

How much does water backup insurance cost?

The cost to add water backup could range from $10 to $250 per year with traditional home insurance policies.

Not all insurance policies (or homes) are created equal. Some companies allow you to add water backup to your policy, but will limit the amount of coverage to $5,000. Others will cover you right up to the coverage limit. If you have an empty basement, you’ll need less coverage than someone with a developed basement, full of furniture.

The price you pay for water backup insurance will depend on:

  • The area in which you live;
  • The amount of coverage you require;
  • The type of home you live in;
  • Whether your home has a basement; and,
  • Whether your basement is finished.

Water backup insurance is included in all home insurance policies offered by Square One. No paying extra.

What is the deductible for water backup damage?

Depending on the home insurance provider you deal with, the standard policy deductible or a separate inland flood deductible may apply. The inland flood deductible applies to water backups caused by inland floods. If you live in an area where water backups from inland floods have been a problem, your deductible will likely be higher.

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