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Water backup, sump pumps and flood: three different things

Ask anyone in the Pointes or St. Clair Shores about June 2021 and they will tell you about their basement. Most of that damage was sewer and drain backup — which a standard homeowners policy does not cover unless you added it. Here is how the three water coverages actually divide.

Water backup: the one the east side needs

Water that comes up through a floor drain, a sewer line, a sump pit or a toilet is “backup,” and it is excluded from the base homeowners policy. A water backup endorsement adds it, usually with a limit you choose — $5,000, $10,000, $25,000 or more. Finished basements, home theaters, second kitchens and storage all argue for a higher limit. The premium is modest compared with a finished basement.

Flood: surface water from outside

Flood is water rising from outside the house — a lake, a river, storm surge, or runoff that enters at grade. Homeowners policies exclude it. It is insured through the National Flood Insurance Program or a private flood carrier. Most of the Pointes are not in a high-risk flood zone, but a house near the lake or a canal in the Shores may be, and a lender will require flood coverage if so. Ask Carly to check the flood zone for your address.

Sudden and accidental: what the base policy does cover

A burst pipe, a failed water heater, a washing machine hose — sudden discharge from inside the house is typically covered, subject to the deductible. Slow leaks, seepage through the foundation, and long-term neglect are typically not. The distinction is about cause and speed, and it is why documenting a loss quickly matters.

The sump pump questions

Carriers will ask whether you have a sump pump, whether it has a battery or water-powered backup, and whether there is a check valve or backflow preventer on the sewer line. Each of those improves eligibility for backup coverage and can lower the price. If you installed a backflow valve after 2021, tell Carly — it matters.

This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.

Common questions

People also ask.

How much water backup coverage should I carry?

Enough to redo the finished space and replace what is stored there. For a finished basement in the Pointes that is often $25,000 or more; unfinished basements need less.

Is flood insurance required?

Only if the lender requires it, usually because the property is in a high-risk zone. It can still be worth carrying voluntarily near the lake.

Does a backflow valve replace the endorsement?

No. It reduces the chance of a loss; the endorsement pays when one happens anyway.

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