The Truth About Sump Pump and Flood Coverage

7/19/2021 (Permalink)

As the owner of a home with a Michigan basement, and being in an industry where we see the worst case scenarios, the question has been brought up about insurance coverage in the event of a sump pump backup or failure.

It is common knowledge, that occasionally sump pumps have been known to fail causing devastation in basements. However, what many people don’t know is that their regular homeowner’s insurance does not cover this, neither does their flood insurance.

Flood insurance typically covers anything structural in the event of a flood.  In other words, if you could take your home and flip it upside down, anything that were to stay attached is covered, anything that were to fall would not be. . . so that heirloom passed down for generations may not be covered though insurance for the cost of restoration.

Don’t find yourself caught in this position; there is a solution to protect you in the event of this happening!

If you have a sump pump in your home, you may want to consider looking into the option of a sump pump rider on your insurance policy.  A sump pump rider endorsement is intended to cover both contents and structure if there is a water loss based on the failure of the unit, either by electrical loss or mechanical failure.  Based on the size of your basement and whether or not it is finished, there are different coverage limits available to fit your needs.

Remember, it is important to always discuss your coverage limits with your insurance agent before making a decision.  SERVPRO of Carleton/Maybee is not an expert on insurance, but only recommends insureds check their options and verify their coverage before tragedy occurs. Adequate coverage should include not only water mitigation, but also the repairs that would be required to put your basement back to its original condition if a loss were to occur.

For any additional questions, or if you have experienced a water loss, please call SERVPRO of Carleton/Maybee at (734) 299-7006.