In February the Insurance Bureau of Canada conducted a survey of homeowners on their perception of the chances of having a home claim. When asked if they thought their home was at risk of suffering damage from wind, hail, earthquake or water/sewer back-up, more than 65% of the homeowners felt that their home was not at risk. In reality, these four events damage millions of homes every year.
The study went on to say that only 8% of the homeowners were concerned about a back-up of a sewer or drain. In fact 81% of these homeowners thought that their policy automatically included coverage for water/sewer back-up, however that's not the case!
So lets backup (no pun intended) and briefly define what we're talking about. “Back-up of water and/or sewer” is when water or sewage comes back up through a drain, such as a floor drain, sink, toilet, etc., and causes damage to your property which requires cleanup and/or repair.
Damage like this, as you can imagine, can be pretty ugly and require careful cleanup to protect against potential mold growth and illness. In the case of sewer backup this is definitely a job for a professional cleaning company!
What can be worse than the mess, as the Canadian study showed, was that many homeowners believe this type of damage is automatically covered in their home policy. On the contrary it is actually specifically excluded. However this lack of coverage can be changed by purchasing an endorsement (addition to the policy) that provides coverage for this type of damage. Coverage amounts for this endorsement usually start at $5,000 and can help with cleanup and repair of the damage and can be increased in $5,000 increments.
So, lets pose the question from the title of this article again. What do you know about water & sewer backup? Hopefully you now know enough to consider the potential risk of damage like this and understand enough to make an informed decision regarding your need for additional coverage.
Author: Andrew Johnson, Sources: Insurance Bureau of Canada
http://www.newswire.ca/en/story/1339225/home-insurance-a-loss-doesn-t-only-happen-to-others
The study went on to say that only 8% of the homeowners were concerned about a back-up of a sewer or drain. In fact 81% of these homeowners thought that their policy automatically included coverage for water/sewer back-up, however that's not the case!
So lets backup (no pun intended) and briefly define what we're talking about. “Back-up of water and/or sewer” is when water or sewage comes back up through a drain, such as a floor drain, sink, toilet, etc., and causes damage to your property which requires cleanup and/or repair.
Damage like this, as you can imagine, can be pretty ugly and require careful cleanup to protect against potential mold growth and illness. In the case of sewer backup this is definitely a job for a professional cleaning company!
What can be worse than the mess, as the Canadian study showed, was that many homeowners believe this type of damage is automatically covered in their home policy. On the contrary it is actually specifically excluded. However this lack of coverage can be changed by purchasing an endorsement (addition to the policy) that provides coverage for this type of damage. Coverage amounts for this endorsement usually start at $5,000 and can help with cleanup and repair of the damage and can be increased in $5,000 increments.
So, lets pose the question from the title of this article again. What do you know about water & sewer backup? Hopefully you now know enough to consider the potential risk of damage like this and understand enough to make an informed decision regarding your need for additional coverage.
Author: Andrew Johnson, Sources: Insurance Bureau of Canada
http://www.newswire.ca/en/story/1339225/home-insurance-a-loss-doesn-t-only-happen-to-others
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