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The backing up of water through sewers or drains results in a mess and cleanup problems. Owners and occupants of dwellings who have experienced such problems don't want to deal with them again. Often, there is substantial damage to personal property stored in basements, and to well-furnished social rooms that are below ground level. The drains through which backup occurs are found in these areas.
The abnormally heavy rains that occurred in much of the country last summer and fall called attention to the exposure in a dramatic way. Homes in or near areas where the water table was particularly high during prolonged rainy periods were especially vulnerable. We were reminded, from unhappy experiences of homeowners policy insureds and their agents, that the problem can be addressed by modification of basic insurance coverage.
Homeowners policies, in general, contain a basic exclusion for ". . . .water which backs up through sewers or drains...." Policies issued by many companies, including those drafted by the Insurance Services Office for use by member and subscriber companies, add the following phrase to the exclusion: "....or which overflows from a sump."
ISO recently introduced an optional endorsement to cover the type of loss or damage that is within the scope of the exclusion. Coverage applies to direct physical loss, not caused by the negligence of any insured, up to $5,000. Applicable exclusions in the homeowners form are deleted with...