Does homeowners insurance cover water damage in my basement?
A finished basement can add up to 100% of living space- think how that can increase your home’s resale value!
But, for now enjoy the beauty and functionality of the additional space.
Question: Does my homeowners policy cover potential damage?
Answer: Your policy provides coverage for your finished basement in the same way it does for the upper floor(s) is/are covered BUT your basement is subject to a potentially very costly risk that the upper floors normally don’t have; that being water damage from a sump pump overflow or water back up from a drain or sewer line. Most all policies do not cover the resulting damage from these sources.
Solution: Add the Water Backup and Sump Pump Overflow Endorsement to your homeowners insurance policy. Different insurance companies call this endorsement by different names but most offer the endorsement. So, ask your insurance agent about it including any differences in coverage from the base policy. The cost of the additional coverage is definitely worth it!
