Sewer Backup Coverage: What It Is, What It Covers & When You May Need It
What is sewer backup coverage?
Sewer backups can happen when blockages, heavy rainfall, snowmelt, or drainage-system failures cause water or sewage to back up into your home through a sewer, drain, sump, or septic system. These plumbing incidents can drench your home and belongings in foul-smelling water, creating a biohazard and an expensive cleanup and repair process.
Standard home insurance doesn’t include sewer backup coverage. Coverage is usually available only as an optional endorsement or as part of a water-damage package.
Is sewer backup coverage worth it?
Maybe your home is well-maintained, in a newly-constructed development, and protected by a backwater valve — or maybe you’re just trying to keep your home insurance costs as low as possible. Do you really need to add this coverage?
The financial cost of a sewer backup can run from a few thousand dollars on the low end to $10,000 or more, depending on the extent of the water damage and the value of the possessions involved.
Sewer backup coverage ensures that your home insurance covers these costly repairs and makes it easier to recover from one of the most unpleasant incidents Canadian homeowners can face.
How sewer backup coverage works
Sewer backup coverage functions as an endorsement to your primary home insurance coverage, extending your policy’s dwelling and contents coverage to apply to water damage caused by water entering the home from a sewer system, drainage system or septic tank (subject to your policy’s wording).
To make a sewer backup claim with your home insurance company, you’ll need to:
- Add the endorsement to your policy before the incident. If your home is damaged by a sewer backup and you don’t have an endorsement to cover the damage, you can’t add one after the fact.
- Show that the damage was caused by a covered backup or escape of water or sewage through a sewer, drain, sump, or septic system, based on your policy wording. Other types of water damage, such as overland flooding or water from a burst appliance hose, may require different coverage.
- Take steps to prevent further damage. Turn off your power, report the backup to your municipality, and avoid using affected plumbing fixtures until a plumber can repair the damage.
- Provide documentation of all property damage. You may need to provide photos of your flooded basement (or other areas of the house) as well as photos of and receipts for any damaged personal property that you want your insurance to cover.
- Work with an adjuster to process the claim. Your insurer will assign a specialist to evaluate the extent of the damage and coordinate with a plumber to cover and implement any needed repairs.
What sewer backup coverage won’t cover
It’s important to understand that sewer backup insurance won’t cover all forms of water damage to your home. It generally applies only to water damage caused by a covered backup or escape of water or sewage through a sewer, drain, sump, or septic system, as defined by your policy.
What increases your risk of a sewer backup?
Any Canadian home can experience a sewer backup, but your property may be at a heightened risk if:
- Your area sees a lot of heavy rain or quick snowmelt: Storms and spring runoff can overwhelm a sewer, drainage, or septic system and cause a backup.
- The plumbing in your area is old: Review records of utility work in your neighbourhood, if possible, to determine whether recent work has been done.
- Your property has a lot of trees: Extensive tree root systems can penetrate and block sewer lines underground, leading to a backup.
- Your sump pump is old or poorly maintained: Your sump pump pumps groundwater away from your home to prevent flooding. If it fails, particularly during a period of heavy rainfall, it can contribute to a sewer backup.
- Something clogs your sewer line: Grease, baby wipes, and other non-flushable items can create a clog in your sewer line, forcing wastewater back into your home.
Foul odours, water damage, and slow drains can all indicate a sewer backup in the making.
How to add sewer backup coverage to your home insurance
To add sewer backup coverage to your home insurance, simply contact your insurance broker or agent and request the change. If you don’t yet have home insurance but want to make sure your policy includes this coverage, you can add a sewer backup endorsement to your home insurance quote.
Be prepared to pay extra for sewer backup coverage — but rest assured that it likely won’t add significantly to your overall insurance costs. While pricing varies based on your risk factors, location, and insurer, most Canadian homeowners pay less than $300 per year to add sewer backup coverage to their insurance.
Sewer backup coverage vs overland water coverage
Sewer backup coverage is often confused with overland water coverage, another key type of flood insurance that’s only available for home insurance policies by endorsement.
While sewer backup coverage deals with incidents involving the backup of wastewater from a public sewer line, overland flood coverage applies to flooding outside the home caused by fresh water from a nearby lake, river, or pond; or from heavy rainfall accumulating on the surface of your property and infiltrating the home.
Many Canadian insurance companies combine sewer backup and overland water coverage into a single package, sometimes with other optional coverage, for comprehensive water damage insurance. Consider purchasing both types of coverage in order to fortify your finances against the serious impact water can have on a home.
Do condo owners need sewer backup coverage?
Sewer backup is a key endorsement for condo insurance policies, since these properties are also vulnerable to water damage caused by sewer backup. Even if your condo is located above ground level or doesn’t have a basement, it may be worth investing in sewer backup coverage.
If you’re not sure whether you need sewer backup coverage for your condo:
- Ask the previous owner or neighbours about the history of sewer backup incidents.
- Consider the risk factors associated with the age of sewer lines, presence of trees, and overall maintenance of your property.
- Check to see if a backwater valve has been installed to reduce the risk of sewer backup.
You may also need sewer backup coverage for tenant insurance. Although the property owner’s insurance should cover any costs associated with repairs or cleanup to the structure of your dwelling itself, your personal belongings are covered by your own tenant insurance policy. Without sewer backup coverage, you could be stuck replacing any sewage-affected items out of your own pocket.
How to prevent sewer backups
Sewer backup insurance helps to offset the financial cost of a sewer backup, but it won’t prevent the damage. You can reduce your risk of sewer backups by doing the following:
- Take good care of your drains: Clogged pipes are a leading cause of sewer backup. Keep household grease, coffee grounds, wipes, feminine hygiene products, paper towels, and other common clog culprits out of your drains — and perform routine maintenance, especially if you see any change in the way your plumbing fixtures drain.
- Install a sewer backup valve: A backwater valve protects your home if the sewer system that serves it becomes overwhelmed. When properly installed and maintained, it will only allow water in public sewer lines to flow away from your home — not back into it.
- Service your sump pump regularly: A sump pump malfunction can cause or contribute to a sewer backup, so make sure yours is always in good working order.
FAQ: Sewer backup coverage
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.