While back-up of sewer and drains coverage is available on primary residences, it is usually not offered as a standalone policy for rental dwellings or investment properties. As an endorsement or sewage backup rider on a standard home insurance policy, the coverage may come with high deductibles and limited policy limits.
Sewage backup into a home can spread illness and harmful bacteria. Overflow into tubs, sinks, showers, and toilets can also increase the risk of fire and electrical hazards.
The greatest risk from sewage backup—especially in basements—is costly property damage. This can affect essential systems and appliances like furnaces, boilers, water heaters, washers, and dryers.
Rental Dwellings Back-up of Sewer and Drains Insurance covers damage caused by sump pump failure or water backing up through sewers or drains.
What is Rental Dwellings Back-up of Sewer and Drains?
Rental Dwellings Back-up of Sewer and Drains Insurance is a type of property coverage that provides protection against water damage caused by a backed-up sewer, drain, or sump pump. It is typically added as an endorsement to a landlord or dwelling fire policy, not sold as a standalone policy for rental properties.
Who Needs It
Property owners who rent out homes, duplexes, or multi-unit buildings should consider this coverage. Backup incidents are more common in older properties or areas with aging infrastructure. If your rental property has a basement or is located in a flood-prone area, you may be at higher risk.
What It Typically Covers
This coverage generally pays for:
- Cleanup and restoration of affected areas
- Repair or replacement of damaged flooring, drywall, and personal property kept on-site by the landlord
- Damage to major systems like water heaters, HVAC units, and laundry appliances
Common Exclusions and Limitations
Not all water damage is covered. Common exclusions may include:
- Damage from flooding (requires separate flood insurance)
- Damage caused by poor maintenance or gradual wear and tear
- Sewage backups caused by tenant negligence
Coverage limits and deductibles can vary, and may not fully cover large losses.
Factors That Influence Cost
Premiums for sewer and drain backup coverage can depend on several factors, including:
- Age and condition of the property's plumbing and sewer lines
- Location and history of water-related claims
- Coverage limits and deductible amounts selected
Proof of Insurance & Compliance
Some lenders or property management companies may require proof of sewer and drain backup coverage, especially for homes with basements or mechanical systems located below ground. Requirements vary by state and lender, so check with your provider for details.
How to Get a Quote
To explore your options for Rental Dwellings Back-up of Sewer and Drains Insurance, start by requesting a quote through our secure form.
Get a quote today.
Frequently Asked Questions
Does rental property insurance automatically include sewer backup coverage?
No, most landlord or dwelling fire policies do not automatically include this coverage. It is typically added as an endorsement.
Is sewer backup the same as flood insurance?
No, sewer backup and flooding are treated as different risks. Flood insurance must be purchased separately through the National Flood Insurance Program or a private insurer.
Can tenants use this coverage for their personal belongings?
No, this coverage typically protects the property owner’s structure and appliances. Tenants should have renters insurance to cover their belongings.
How do I know if my rental property is at risk of a sewer backup?
Older plumbing systems, properties in low-lying areas, and homes with basements are more prone to backups. A home inspection or plumbing assessment can help evaluate risk.
Will this coverage pay for mold removal after a backup?
It depends on the policy terms. Some endorsements may include mold remediation if it results directly from a covered backup event, but often with limited coverage.
Still have questions? Talk to a local insurance expert.