I have a finished basement with a sump pump. Will my policy respond to damage if the sump pump malfunctions or overflows?

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.