My question is regarding sewer back-up or overflow of sump pump endorsement. If the insured has their policy endorsed for a limited amount for sewer back-up/sump overflow ($5000.00 for example) and the repairs exceed the limit along with the insured having to stay at a different location due to the sewage. Are they still able to collect for Loss of Use or does the contamination exclusion apply along with the $5000 Limit being exceeded? Thanks in advance for your reply.
South Dakota Subscriber
I'm looking at the ISO HO 94 95 Limited Water Back-up and Sump Discharge or Overflow Coverage endorsement, your form may be different. The limit in the form applies only to the coverage for water back-up; it does not change any of the other policy provisions, as stated in the last line: "All other provisions of this Policy apply."
The endorsement makes the water backup loss a covered loss under section I. Therefore, if the insured's residence is not fit to live in because of the water backup issue, then the additional living provisions would apply. The limit for the water backup has nothing to do with available limits for additional living expenses; that limit applies only to damages caused by the water backup.
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.