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ASK KIM
Protect Yourself From Sewage Backup
by Kimberly Lankford

I just received a notice that my homeowners insurance company is dropping sewage backup coverage from my policy. Is this important coverage to have, and is there anything I can do about it?

Yes. Unlike flood insurance, which is required only for homes in flood-prone areas, any house with indoor plumbing could suffer damage from a sewage line break or drain backup.

It's especially important if you have a finished basement that contains valuable furniture or equipment that could be destroyed. But damage isn't always limited to the basement. If a sewer line to an upstairs bathroom breaks, it could damage upper main and lower floors.

Not only is the backup gross, but also it can easily cost a few thousand dollars or more to clean up the disgusting mess.

As homeowners insurance companies struggle to become more profitable, many unfortunately are dropping extra coverages that have cost them a lot of money. And they're particularly interested in staying away from water-damage claims, which can get surprisingly expensive. Sewage backup coverage is often one of the first things to go.

But most companies let you buy a rider for about $50, which will cover up to $10,000 in clean-up costs if you do have a backup claim.

Even if you haven't received notice that your insurer is dropping sewage backup insurance, it's worthwhile to ask whether it's included in your policy. These days, most standard homeowners policy do not automatically include that coverage, but they generally offer a rider to add it on.