Insurance Basics | Risk Coach Resources

The #1 Threat to Your Basement

By almost anyone’s standards, $25,000 is a lot of money. It’s a pretty painful amount when you find out the hard way that it’s the approximate cost of repairing your basement after it’s been flooded by six inches of water and/or sewage that’s backed up into your home. Even more painful is the fact that a standard homeowners policy will not cover the damage to the structure of your house or to any personal property that’s damaged.

The noxious fluids flooding your home can damage or destroy flooring, walls, shelving, appliances, and stored items. Cleanup and decontamination can be a major effort and may involve city ordinances for disposal of toxic materials.

Ineffective treatment can lead to mold under floors and behind walls – something a standard homeowners policy doesn’t cover. Costly professional remediation may be needed.

Lessons Learned

Standard policies won’t cover you for damage caused by sewage and water that backs up into your home. A blocked sewer pipe, heavy rains, gas buildup, and other factors can cause raw sewage or water to flood your home. A standard insurance policy won’t cover it.

What to Do

Get a stand-alone “Water Backup and Sump Discharge or Overflow” endorsement or homeowners coverage “package” policy that includes coverage for water and sewer backups and sump pump breakdowns. Consider what it would cost to professionally clean, decontaminate, and dry the area and to replace or repair any damaged materials or possessions. Then select your coverage limits accordingly. Always remember to discuss a Flood insurance policy with your advisor, too.

Contact Us

Our Risk Coaches are licensed insurance professionals who are glad to help you navigate the often-perplexing world of insurance coverage. Contact your local Risk Coach, or call us at 855.227.8211, Monday through Friday, from 7:30 a.m. to 9:00 p.m. ET.


Electric Insurance Company Risk Coaches help you assess your current coverages and exposure to risk based on the information you provide during your discussion with them. The services provided are for informational purposes only and do not create a professional or fiduciary relationship. Incomplete information or a change in your circumstances after your meeting may affect coverage requirements or recommendations.

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