Does Homeowners Insurance Cover Water & Sewer Backups?

Article overview

• What a sewer backup is: A clear definition, why it happens and why it’s hazardous.
• Is it covered?: Why standard homeowners insurance typically excludes sewer backups.
• What’s usually covered (with an endorsement): Cleanup, repairs and damage tied to backed-up water with coverage limits.
• What’s not covered: Maintenance issues, faulty plumbing and other common exclusions.
• Sewer backup vs. flood damage: Why the difference may matter for coverage.
• What to do after a backup: Safety steps, documentation, cleanup and claim basics.
• How to prevent backups: Backwater valves, sump pump maintenance and best practices.

Does homeowners insurance cover sewer backups?

Sewer backups are more than just stressful, they’re often costly. That’s because when water backs up, usually through a basement or bathroom, damage can occur quickly to floors, walls, electrical systems and personal belongings.

What many may not realize is that homeowners are responsible for maintenance and repair of the sewer lateral (the pipe that runs from your home to the municipal sewer).

For those on septic systems, the news is similar; standard homeowners insurance does not cover sewer backups. However, many insurers may offer optional coverage that can be added to a standard homeowners policy. Here, we’ll go through some basics of sewer backups and their respective insurance coverage.

What is a sewer backup?

A sewer backup is when wastewater cannot flow properly from your home to the sewer or septic system, causing sewage to reverse and enter your home. When this happens, contaminated water may come up through drains, toilets or floor fixtures, creating potential property damage and health hazards.

Common causes include heavy rains, clogged pipes, tree roots and aging, sagging or poorly maintained plumbing.

More specifically, most water backup coverage would exclude tree roots and improper maintenance because that is not sudden or accidental. Resulting interior damage may be covered, but it will not repair the sewer line or remove the roots. A service line endorsement typically covers the line that the homeowner is responsible for, not the municipality.

Typical coverage includes: Sewer laterals (waste lines), water supply lines, drain lines, natural gas lines, electrical power lines and communications lines (cable, internet, fiber optics).

Under standard policies, sewer and septic backups are generally not covered, as they’re considered their own peril.

However, with optional sewer backup endorsements, the following may typically be covered:

• Water/Sewer Backup endorsement covers damage from sewage backup.
• Service Line/Lateral endorsement covers damage to the sewer line itself.
• Removal of standing sewage from your house
• Damage caused by standing sewage (up to coverage limits)
• Damage to the dwelling, finished basement, and sometimes personal property caused by sewage backing up through drains or toilets.

What sewer backup insurance does not cover

• A damaged or faulty plumbing system
• Damages caused by poor maintenance
• Standing sewage caused by city mismanagement

What about septic systems?

For homeowners with septic tanks, standard insurance may pay to repair tanks and pipes that are damaged by fire, lightning or other covered events, but you shouldn’t expect coverage for damage caused by tree roots or improper maintenance; additional water backup coverage is advised to cover these circumstances and more. 

What is sewer backup coverage?

It’s important to note that this is not a separate policy, but an endorsement (or add-on) to an existing homeowners policy. Typically, a sewer backup endorsement helps cover the cost of damaged personal items, water removal and cleanup, and repairs to floors and walls. Coverage limits commonly start around $5,000 and can increase from there.

Sewer backup vs. flood damage: What’s the difference?

A backup of water and sewer insurance policy endorsement generally applies to water and sewage that backs up through drains, toilets or related systems inside the home.

Sewer Backup coverage applies when water or sewage comes up into your home through pipes, drains, toilets or a sump pump. Flood coverage applies when water comes in from outside the home, such as from heavy rain, overflowing rivers or storm surge.

Do you need sewer backup coverage?

For homes with basements, older plumbing systems or shared neighborhood systems, large trees or those in areas with heavy rainfall, it’s especially important to have sewer backup coverage. While not a requirement, a sewer backup endorsement is a relatively low-cost add-on to an existing policy compared to the potentially high cost of repairs from water damage. Remember, a service line/sewer backup endorsement does not cover surface flooding from storms; it helps cover water that backs up through your pipes.

What to do if a sewer backup happens

If you experience a sewer backup, it’s critical to act swiftly. A ticking clock can be the enemy as parasites, viruses and bacteria enter living spaces quickly, posing serious health risks and causing structural damage to your home.

1. Start by stopping the source of the water backup if possible and avoid contact with contaminated water.
2. Take photo and/or video documentation of damage to walls, baseboards, flooring, furnishings and personal belongings.
3. Contact your insurer to confirm coverage and potentially file a claim.
4. Call a professional cleanup service to help minimize and prevent mold and structural damage.

How to prevent sewer backups

Knowledge is half the battle when it comes to preventing sewer backups. Things like routine plumbing inspections and proper disposal of items such as grease or wipes go a long way. But even with good practices, there are steps you can take to reduce the likelihood of a sewer backup. Here are a few to consider:

1. Install a backwater valve. This requires a professional plumber who will obtain a permit to excavate your flooring, cut the sewer pipe and place a one-way flap valve on the main sewer line.
2. Maintain your sump pump. Clean debris from the pit and check the discharge pipe for blockages 3-4 times per year.

The bottom line on a dirty problem

While standard homeowners policies don’t cover sewer backups, add-on endorsements are available from most insurance companies for a nominal cost.

Review your policy carefully and weigh the risk factors for your home to make an informed decision whether to add sewer backup coverage to your policy. As with most things, preparation is key, and a solid understanding of your coverage will help you navigate a sewer backup disaster more easily.