Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type of water damage is handled differently by your insurance. Watch the video below for a breakdown of the key differences between Flood, Water Damage, and Sewer Backup coverage—so you know exactly what’s covered and what’s not.
Transcript:
Not all water-related property perils are the same, and the way a loss is classified determines how insurance will respond. Being able to distinguish between different water losses is essential to knowing where coverage applies, and where it doesn’t.
Flood damage comes from water outside the property—like overflowing rivers, lakes, heavy rain runoff, or storm surge. Because most property policies exclude flood damage, an add-on product is typically required for this loss to be covered.
Water damage refers to sudden and accidental events inside the property—like a burst pipe or the overflow of a bathtub. This coverage is typically included on Special Form policies, but it’s always wise to double-check with your particular insurance provider.
Sewer Backup occurs when water backs up into the home from a sewer, drain, or sump pump. While standard policies typically exclude this, some providers, like NREIG, offer Sewer & Drain Backup as an optional add-on coverage.
Each of these water-related losses are handled differently by insurance, and assuming you have coverage when you don’t puts your investment at risk. Partner with an insurance provider that works directly with real estate investors to identify gaps, recommend applicable add-ons, and build custom coverage packages to protect your properties.
