Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

Does your home have a finished basement?
Do you rely on a sump pump to keep things dry during storms or snowmelt?

If so, there’s something you need to know:  your standard homeowners insurance policy likely won’t cover water damage from sewer or drain backups.

In this quick-read blog, we’ll explain the difference between water damage and water  backup , what your policy probably covers (and what it doesn’t), and how you can  add a simple endorsement to fill this risky gap.

When it comes to insurance,  water damage and water backup are not the same thing .

Here’s the difference:

• Water damage  typically refers to a sudden event  inside your home , like a  burst pipe, leaking appliance, or damaged roof .
• Water backup  refers to water coming  into your home from outside sources  — like a  sewer line, drain, or failed sump pump .

Standard home insurance policies usually cover the first — but not the second.

That means if sewage or groundwater floods your finished basement due to a sump pump failure or clogged drain,  you could be left paying for repairs out of pocket.

Water backup coverage  is an  add-on endorsement  you can include in your homeowners insurance policy. It’s designed to  cover damage caused by water that backs up through sewers, drains, or sump pumps.

Why is it so important? Because these events:

• Are more common than people think — especially during heavy rains or power outages
• Can cause  expensive damage , especially to finished basements, flooring, furniture, and electrical systems
• Are  not  considered “sudden accidental discharge” — and are  explicitly excluded  from many standard policies

Unfortunately,  most people only learn about this gap in coverage after their basement floods  — and by then, it’s too late to add it.

Even worse? If you’ve invested in a finished basement, water backup could mean  thousands of dollars in out-of-pocket repairs , mold risk, and damage to sentimental items.

The good news?  Water backup coverage is easy to add and often very affordable.

Here’s what we recommend:

1. Check your current policy  to see if water backup is included. (It usually isn’t by default.)
2. If you have a sump pump, finished basement, or any plumbing near lower levels, strongly consider adding it.
3. Talk to us.  We’ll explain the exact cost and coverage options — in plain English — and help you protect your home the smart way.

At  Vargas & Vargas Insurance , we’ve been helping Massachusetts homeowners understand their policies — and protect what matters most — for over 45 years.

📞  Call us today at 617-298-0655
💬  Or visit  vargasinsurance.com

Not sure if your policy includes water backup coverage?  We’ll review it with you — no pressure, just honest advice.