Many homeowner’s policies exclude water damage for water or waterborne material that backs up through sewers or drains or overflows or is discharged from a sump pump or related equipment. Flood, ground, or surface water are also excluded. A separate endorsement is available to provide coverage for water back-up of sewers and drains and sump pump malfunction or overflow. Homes with a sump pump and finished basement are most susceptible to these losses. Many companies offer this coverage with a limit of $5,000 to $10,000 per loss. A few companies offer this coverage without limits. Annual costs range from $25 to $75.
> > I have a finished basement with a sump pump. Will my policy respond to damage if the sump pump malfunctions or overflows?