# Straight from an Insurance Agent



## DUNBAR PLUMBING (Sep 11, 2008)

*Clarification: "Flood" coverage is not covered on any homeowners insurance. If the sump pump fails, you have water back-up coverage available via endorsement. Anyone w/ surface water issues is also out of luck. Make sure you keep a back-up battery system installed on your sump pump...That's where we see most of our claims.*



Do you think that "via endorsement" means "bought a specific policy" that offers water back-up coverage?


And what dictates 'water surface issues'


The last statement about a battery back-up, 

do you think they are saying that absence of a battery back-up is the claim? (meaning, sump pump failure isn't covered, but water damage to contents are)



I know plumbing lingo, not so much insurance lingo.


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## user2090 (Sep 26, 2009)

Funny you should bring this up. Just last week at a Chamber of Commerce meeting the featured speaker for our group meeting was an insurance agent, and he spoke on this issue. 

In summary...
A flood caused by rain, or any water that comes from the outside of the house is not covered, unless you by Federal flood insurance. The reason is, if there were a flood in a certain coverage area it would financially ruin a company in one fail swoop. 

An endorsement is only good to cover "some" issue caused by a mechanical failure, or plumbing failure, unless its a maintenance issue. For example: A backed up sewer line floods a house, its usually not covered because it is a maintenance issue. Why did the line back up? It can sometimes be covered, but most likely would be turned down. 

That should be as clear as mud. :laughing:

Basically, if they can find a way not to pay then you are S.O.L.!!! They have more money for lawyers than you do.


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## DUNBAR PLUMBING (Sep 11, 2008)

*A wese statement often told*

"Your insurance is only as good as its exclusions."


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## 1703 (Jul 21, 2009)

Your basic policy doesn't cover damage from sump pump failure or sewer back up. Additional coverage can be purchased to cover those items if desired. 

Bottom line its the homeowners job to know what's in his or policy and what's not in the policy. Whenever I change a sump pump, I bring this to the homeowners attention.


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## ToUtahNow (Jul 19, 2008)

DUNBAR PLUMBING said:


> *Clarification: "Flood" coverage is not covered on any homeowners insurance. If the sump pump fails, you have water back-up coverage available via endorsement. Anyone w/ surface water issues is also out of luck. Make sure you keep a back-up battery system installed on your sump pump...That's where we see most of our claims.*
> 
> 
> 
> ...


Flood insurance is readily available and not too expensive.

Mark


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## PeckPlumbing (Mar 19, 2011)

hmm... Okay, so we will be installing two sump pumps in a french drain vault outside a home. His last sump pump (plastic pOS failed) flooded the basement when it stopped. Does this mean if we install new pumps and somehow the circuit failed, the homeowner could come back on us? I wouldnt think so, as we have no control over power conditions... but now I am nervous!


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## DUNBAR PLUMBING (Sep 11, 2008)

ToUtahNow said:


> Flood insurance is readily available and not too expensive.
> 
> Mark


 
Most times, it's a $40/year addition to an already existing policy. However, the agent won't tell you unless you ask for it. And of course, they definitely get that policy add on once they see the damage from one event.


Peck that can go quite a few different ways. In a situation like that, the very first words will come as power failure, which could happen just by the electric going out for a period of time.

I don't know how involved the customer's insurance policy entails, but it would seem hard to figure out how you would be liable for the breaker in a panel, if all you did was install new pumps.

Breakers are not as reliable as once before, or seemed. I've come across many defective breakers to water heaters, sump pumps, water pumps.


There will always be proving grounds to determine liability, and always gets shot through the homeowners insurance first. If it proves liable towards the contractor, then there becomes the next move, which is contacting the contractor via insurance company.


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