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What Is A Water Backup Policy?

By September 14, 2021Insurance
What is a water backup policy

Water damage in your basement? You could be paying out of pocket without a water backup policy. 


A standard homeowners insurance policy will generally cover accidental water damage that can occur within the home. Any damage resulting from broken HVAC systems, bursting water pipes, or faulty home appliances will generally be covered under a homeowners policy.  


Yet, there are a number of causes of water damage that aren’t covered under most homeowner’s policies. These include surface water, water that enters the home from underground, sewer backups, faulty sump pumps, and one of the most destructive, floods, which are not covered under a standard homeowners policy. 


What Is A Water Backup Policy?

Water backup coverage is a form of insurance that can protect your home from certain water damages not covered by your homeowners policy. For a minimal addition to your homeowners policy, this type of insurance can be a lifesaver when an unfortunate event happens in your home.  


Is water backup coverage necessary? 

A staggering amount of the country’s sewer systems are over three decades old. What this means is that a sewer backup is a possibility for most homeowners who live in these areas. Even updated and newer sewer systems can fail, causing substantial damage to your home. With the average water damage claim payout being $65,000 according to Chubb Insurance. Also, being the #1 source of property damage, above burglary and even fire. The average household can be out of their home for an average of 3 months. Having water backup coverage can save you in many ways.   


Is water backup coverage expensive? 

Adding a water backup policy to your current homeowners policy is very simple and easy to obtain, not only for you but also for your wallet. With a minor policy increase of around 3% annually, working out to $50-$250 per year according to Hanover Insurance Group. It’s one of the least expensive and most valuable additions to your homeowners policy. Potentially saving you thousands in the event you have damage to your home caused by a water backup.  


Do you already have a water backup policy? 

The best way to know if you already have a water backup policy is to go over your current homeowners policy. If after looking at it, you’re unsure if you have enough coverage, please get in touch with one of our customer service representatives and have us take a look. 


If you live in an area with an older sewer system and are concerned about your risk of water backup damage. Don’t hesitate to reach out to us with questions about the best approach for your situation. Vero Insurance is here to help whenever and however we can. 



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Vero Insurance is a niche broker with a focus on providing insurance placement and risk management services to high-income families. Here at Vero, we love to provide you with exciting and fun articles to learn more about insurance and how it impacts your life. Visit our other blogs to find more information. 

While Vero does offer a wide variety of personal insurance coverages, our main coverages include personal umbrella insurance, auto insurance, and homeowner’s insurance. To find the best coverages for you and your family, use the contact form below so you can be at ease knowing you’re covered. If you’re looking for commercial insurance, please visit Worthy Insurance.Top of Form 


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