IN-THE-KNOW

More RAIN?!? Is my home protected?

Basement water damage is one of the most common home insurance problems we see in Michigan. Many homeowners do not realize water backup or sump overflow coverage is optional until after a claim happens.

Most base home insurance policies do not automatically cover water that backs up through a drain or overflows from a sump pump. That protection is usually added through a water backup or sump overflow endorsement.

The endorsement matters, but the coverage limit matters too.

A finished basement can burn through a small limit fast between mitigation crews, drying equipment, drywall, flooring, trim, and damaged mechanicals.

One recent example involved an Allen Park homeowner with a finished basement. Heavy rain caused the sump pump to fail.

Mitigation costs were about $4,800.

Drywall and flooring repairs added another $5,200.

A damaged furnace and water heater added roughly $3,500 more.

Total damage reached about $13,500.

Their policy did not include water backup coverage, so insurance paid $0.

The endorsement would have cost about $8 per month.

Check your declarations page for:

• Water Backup

• Sump Overflow

• Coverage limits

Finished basements, flooring, furnaces, water heaters, and stored belongings all affect how much coverage makes sense.

Not sure what your policy includes? Ask your agent to review your declarations page and point out the water backup or sump overflow coverage section. Policy language and carrier rules vary, so it is worth checking before the next heavy rain.

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YOUR
FAQ
HUB!

More RAIN?!? Is my home protected?

Tamara Champagne

May 20

1 min read

Basement water damage is one of the most common home insurance problems we see in Michigan. Many homeowners do not realize water backup or sump overflow coverage is optional until after a claim happens.

Most base home insurance policies do not automatically cover water that backs up through a drain or overflows from a sump pump. That protection is usually added through a water backup or sump overflow endorsement.

The endorsement matters, but the coverage limit matters too.

A finished basement can burn through a small limit fast between mitigation crews, drying equipment, drywall, flooring, trim, and damaged mechanicals.

One recent example involved an Allen Park homeowner with a finished basement. Heavy rain caused the sump pump to fail.

Mitigation costs were about $4,800.

Drywall and flooring repairs added another $5,200.

A damaged furnace and water heater added roughly $3,500 more.

Total damage reached about $13,500.

Their policy did not include water backup coverage, so insurance paid $0.

The endorsement would have cost about $8 per month.

Check your declarations page for:

• Water Backup

• Sump Overflow

• Coverage limits

Finished basements, flooring, furnaces, water heaters, and stored belongings all affect how much coverage makes sense.

Not sure what your policy includes? Ask your agent to review your declarations page and point out the water backup or sump overflow coverage section. Policy language and carrier rules vary, so it is worth checking before the next heavy rain.

Comments

IN-THE-KNOW

More RAIN?!? Is my home protected?

Basement water damage is one of the most common home insurance problems we see in Michigan. Many homeowners do not realize water backup or sump overflow coverage is optional until after a claim happens.

Most base home insurance policies do not automatically cover water that backs up through a drain or overflows from a sump pump. That protection is usually added through a water backup or sump overflow endorsement.

The endorsement matters, but the coverage limit matters too.

A finished basement can burn through a small limit fast between mitigation crews, drying equipment, drywall, flooring, trim, and damaged mechanicals.

One recent example involved an Allen Park homeowner with a finished basement. Heavy rain caused the sump pump to fail.

Mitigation costs were about $4,800.

Drywall and flooring repairs added another $5,200.

A damaged furnace and water heater added roughly $3,500 more.

Total damage reached about $13,500.

Their policy did not include water backup coverage, so insurance paid $0.

The endorsement would have cost about $8 per month.

Check your declarations page for:

• Water Backup

• Sump Overflow

• Coverage limits

Finished basements, flooring, furnaces, water heaters, and stored belongings all affect how much coverage makes sense.

Not sure what your policy includes? Ask your agent to review your declarations page and point out the water backup or sump overflow coverage section. Policy language and carrier rules vary, so it is worth checking before the next heavy rain.

Actual Cash Value vs. Replacement Cost: Why Your First Check May Be Smaller

You’ve been waiting for your claim payment, and when the check arrives it’s not what you expected. You were thinking it...

Your Deductible Still Says 1%. Why Did the Dollar Amount Go Up?

Your homeowners renewal shows up. The price changed, so you start comparing it with last year's policy. Then you get to...

Auto Claim Supplements: Hidden Damage, Additional Estimates, and What to Ask

A body shop calls after starting repairs on your vehicle: “We found additional damage and sent it to the insurance...

Why Your Claim Goes Quiet After the Inspection (And What to Do Next)

The adjuster came to your property, took photos, asked questions, and left. A week passes. Maybe two. You’re thinking,...

YOUR FAQ HUB!

Basement water damage is one of the most common home insurance problems we see in Michigan. Many homeowners do not realize water backup or sump overflow coverage is optional until after a claim happens.

Most base home insurance policies do not automatically cover water that backs up through a drain or overflows from a sump pump. That protection is usually added through a water backup or sump overflow endorsement.

The endorsement matters, but the coverage limit matters too.

A finished basement can burn through a small limit fast between mitigation crews, drying equipment, drywall, flooring, trim, and damaged mechanicals.

One recent example involved an Allen Park homeowner with a finished basement. Heavy rain caused the sump pump to fail.

Mitigation costs were about $4,800.

Drywall and flooring repairs added another $5,200.

A damaged furnace and water heater added roughly $3,500 more.

Total damage reached about $13,500.

Their policy did not include water backup coverage, so insurance paid $0.

The endorsement would have cost about $8 per month.

Check your declarations page for:

• Water Backup

• Sump Overflow

• Coverage limits

Finished basements, flooring, furnaces, water heaters, and stored belongings all affect how much coverage makes sense.

Not sure what your policy includes? Ask your agent to review your declarations page and point out the water backup or sump overflow coverage section. Policy language and carrier rules vary, so it is worth checking before the next heavy rain.

Comments

YOUR
FAQ
HUB!