Sewer Backup vs. Plumbing Issue
Recently, I experienced a sewage backup in my basement. Fortunately, I was present when the water began to surge through the floor drains and eventually overflowed from the toilet. I immediately contacted the water department, and they dispatched someone within 15 minutes. The technician confirmed there was a blockage in their main line but needed to call in a crew with specialized equipment to resolve it. About 45 minutes to an hour after my call, they managed to clear the blockage, but by that time, there was already about 4-6 inches of black sewage water in my basement. Once the water receded, it left behind wall-to-wall sludge.
I filed a claim with my insurance (Progressive/Homesite) and fortunately have a sewage backup endorsement with a $10,000 limit. I was concerned since the damages exceeded that amount, but the adjuster classified it as a plumbing issue. This classification falls under my standard policy, allowing my full dwelling and personal property limits to apply.
The water department representative also provided information on how to file a claim with the township’s insurance, which I did, and they finally reached out about a month later. So far, my insurance has paid out around $30,000 and may ultimately cover between $40,000 and $50,000 once everything is settled.
I have two questions. First, why did my insurance categorize this incident as a plumbing problem instead of a direct sewer backup, which seems more accurate?
Second, if I involve the township’s insurance, could my insurance go back and reclassify the incident as a sewer backup, potentially resulting in them wanting reimbursement?
I assume that if that were to occur, the township’s insurance would reimburse my insurer. However, based on their communication, it appears they will only cover personal property and not any damage to the dwelling itself.
At this point, I’m considering bypassing the township’s insurance and letting my own cover the damages, knowing that my rates will likely increase as a result.
Lastly, I should mention that I’m aware of at least five other houses that experienced the same sewer backup, so this wasn’t just an isolated incident affecting my property. I’ve already informed my insurance of the details in the first paragraph, including the fact that the blockage originated in the township’s main line.
Thanks for your input!
It sounds like you’ve been through a really challenging situation, and it’s great to hear you were able to catch it in time. I’ll do my best to address your questions.
Insurance Classification of the Incident: Insurance companies can sometimes classify similar incidents differently based on specific policy language and the circumstances of the event. In many cases, a sewer backup is specifically considered a type of water damage that falls under a separate endorsement, which is why you have that $10,000 limit. However, if the cause of the backup is classified as a plumbing issue rather than a sewer backup (like a blockage in the municipal line), your standard policy might cover it more comprehensively. The adjusters often look at the details of how the water entered your home and the specifics of your policy. It seems that they determined the blockage was an issue before it reached your property, which might have played a role in their classification.
Involvement of the Township’s Insurance: If you pursue the township’s insurance claim, there is a possibility that your insurance may revisit the classification of the incident, especially if they are made aware that the township’s main line was the direct cause of the backup. If they were to reclassify the claim as a sewer backup, it’s conceivable they might seek reimbursement for the payout. However, since you have already reported the incident to your insurance with all the relevant details, it could depend on how the township’s claims process unfolds and what your own policy stipulates about such incidents. You’re correct that the township’s insurance likely has limitations on coverage, but if multiple properties were affected, they may have a wider scope to cover damages.
It may be worth consulting with a lawyer or insurance adjuster who specializes in these types of claims to get tailored advice. They can help clarify the potential consequences and what documentation you might need if any disputes arise. Raising your rates is definitely a concern, but balancing that with the potential for additional claims might be necessary to ensure you’re fully covered.
Ultimately, it’s crucial to keep transparent communication with both your insurance and the township’s insurance to protect your interests. Good luck, and I hope everything gets resolved smoothly!