FOR RELEASE: May 13, 2002
5-5-02

FOR INFORMATION: OII—Mitch Wilson/Mary Bonelli, 614-228-1593
After hours: Mitch/614-868-0575; Mary/614-443-0400

SEWER-DRAIN BACKUP LOSSES CAN BE COVERED BY HOMEOWNERS/RENTERS INSURANCE

COLUMBUS-Heavy rains throughout the state may have some Ohioans wading through soggy basements caused by backup of sewers or drains. The Ohio Insurance Institute (OII) advises to check with your insurer regarding current coverage limitations and, more importantly, inquire about adding coverage to your homeowners or renters policy for these types of losses should they occur again.

"Most companies offer sewer and drain back up as optional coverage, meaning that it can be added to your policy as an endorsement," said Daniel J. Kelso, OII president. "And because the loss potential from water backup in basements could be in the thousands, homeowners should consider this coverage before actually needing it."

A random check by the OII of various insurance companies finds the cost for this endorsement is reasonable for Ohioans, around $50 on average.
According to the Institute, coverage limitations vary by company so it's important to understand how and where it applies. Some insurers offer coverage up to the limits of the actual policy, while other insurers limit the coverage to a specified amount such as $5,000 or $10,000. Other variations include full coverage for sump pump failure to other insurers specifying what items will be covered in the event of such a claim. Deductibles apply.

"Consumers can take steps to minimize their losses, and should, even if there's a remote chance of this occurring," said Kelso.

Tips from the OII include:

• Never store perishables or valuables in basements that you can't afford to lose or replace (i.e. photos, clothing, electronics, collectibles, etc.)
• Do not store any item near basement drains.
• Check storm drain lines to make sure they're clear of debris, roots, etc.
• If you do have some water seepage following storms, take corrective measures to alleviate problems in the future. For instance, install a sump pump or have a company that has expertise in waterproofing basements take a look at your situation to see if there's something that can be done to eliminate potential major losses. Most of these companies offer work guarantees. Also be sure to tell your insurer when such improvements have been made.
• Use shelving or store items several inches above the potential water level in order to prevent losses.
• Make sure your home's downspouts are extended away from the foundation in order to carry water away from basement walls.
• Grade the property around your home to drain water away from it.
• Consider the purchase of a flood insurance policy. Check with your insurance agent or company representative for details. Flood coverage is excluded in all homeowners/renters policies and, if desired, can be purchased as a separate insurance policy. (FOR MORE INFORMATION ON FLOOD INSURANCE, CONTACT THE OII or visit www.ohioinsurance.org/images/flood.pdf to download a flood insurance brochure.)

The OII is a trade and public information association representing insurance companies and agent groups for the property/casualty insurance industry. Its primary objective is to help Ohioans achieve a better understanding of insurance and safety issues.