Insurance Coverage item "Water Backup of Sewers or Drains"

[Casey Rolland]

My old insurance agent retired and sold his company to this new agent. I am told that my insurance coverage is lacking "Water Backup of Sewers or Drains" and this is the most frequently claimed items from Landlord Protection Insurance policy. I only have SFH for rentals and over the course of the last 15 years I have never had to file a claim (all the properties are connected to city sewer system).

Average yearly cost for this itemized coverage alone is $115/property. I signed up to it but I feel like this is an unnecessary item.

Can anyone advise if this coverage is needed?

I believe this item covers the repairs (only up to $10K BTW) if a tenant drops something to the sewer that clogs up the drainage completely.

[Richard F.]

Aloha,

Depends on how much of a hit you can handle out of pocket. City sewer lines sometimes get blocked, depending on how old they are, or nearby construction effects, and other issues. If you have a basement, with floor drains, how much damage could you get if the line backs up through those floor drains? If NO basement, what is potential damage...proper extraction, sanitation, removal/drying of walls and trim, personal property, etc. Remediation companies are EXPENSIVE. You can drop 50K for a serious main floor back up. A one man operation will be much less, but the liability for sewage cleanup is high.

[Henry T.]

I wouldn't. 

[Jason Bott]

@Casey Rolland Water Backup of Sewers or Drains covers the damage caused by the back up, not the replacement of a sewer or drain.  

Many investors with 1-3 units will take it to play it safe.  For my clients who have 10 or more units, they self insure for it.

The most common issue we see is a 2nd floor drain back up that causes ceiling issues on the first floor unit.  It can be messy, but not a huge expense.

The one instance we will recommend it is for basement level rental units.  Just a few inches of back up can ruin that units flooring, drywall and moldings.