Sump Pump in your basement? The sump pump endorsement is a MUST.
During the spring Nor’easters, plenty of folks in eastern Massachusetts, including myself, experienced prolonged power outages. It was bad enough not to be able to charge our devices, but my sump pump shut down allowing the water to flow out into the basement.
I said to myself, “Bummer. But it seems like a pretty straightforward, covered claim.” Wrong! Unbeknownst to me, I didn’t have the special sump pump endorsement on my policy. Without that endorsement, if the sump pump shuts down for ANY reason, you are out of luck.
I took a look at the Exclusions section of my policy and was horrified to see right there in black and white that water which overflows or is otherwise discharged from a sump, sump pump, or related equipment is not covered. So, even though the power in the whole neighborhood was out through no fault of my own, my sump pump failure was not covered.
I found it counterintuitive for this to be excluded. A homeowner mitigates risk of flooding by installing the sump pump in the first place. A power outage occurs, and the sump pump fails. It has nothing to do with poor maintenance or lack of due diligence. But apparently, insurance companies consider this such a common occurrence, they decided to make it an endorsement rather than a standard coverage.
Chalking it up to a good learning experience, I called my insurance agent and added the endorsement to my policy the next day. It wouldn’t help me for this incident but would if it ever happens again. The endorsement provides limited coverage for sump pump failure – usually $2,500 or $5,000 – and it should cost less than $100 per year. If you have a sump pump, you should have this endorsement. Your agent may not ask you if you have one (mine didn’t), so you need to let them know. Check your current policy. If it’s not there, add it. You don’t want to be surprised after the fact like I was.