Spring is the time of year that we start to get quite a few calls related to water in the basement. Every year I send at least 1 communication to my clients to make sure they are fully aware of what is not covered on the basic Homeowners Insurance policy, without purchasing additional coverage.
Even though most Homeowners policies cover water related to broken pipes, and plumbing systems, groundwater is a whole different story. Basically, once the water hits the ground and enters the home over the foundation, through the foundation, or backing up through sewers, drains,window wells, or sump pump pits, water damage to the home and contents is not covered without purchasing additional coverage.
Water backup insurance can be purchased on most Homeowners Insurance policies, and can cost anywhere from $40 to $300 a year extra based on where you live, and how much coverage you buy. This will address all the issues with water backing up through sewers, drains or sump pump pits. In this way, when you have water related to these issues, and damage occurs, coverage will be afforded in accordance with the amount of coverage you have purchased after your deductible has been satisfied.
When your Home is involved in a flooding situation, where water surrounds the home, Flood insurance applies. This is a Federally sponsored program, but is generally underwritten by your Homeowners Insurance Agent.
More next time on Flood Insurance.........