This type of policy covers damage resulting from backup of the sewer system, as well as sump pump overflow. Such damage may result from flooding due to heavy rainfall during a power outage.
Coverage for a sewer or drain backup is recommended if your home is connected to a public sewage system, especially if you have a finished basement and a sump. Your need is even greater if you live in an area with considerable rainfall.
"Claims from standing sewage (or) water in a home can easily be in the tens of thousands of dollars," says Bill Wilson, associate vice president of education and research for the Independent Insurance Agents & Brokers of America and director of Big "I" Virtual University.
Coverage for a sewer or drain backup is typically inexpensive, costing $50 per year on average, Wilson says. That makes the coverage a relative bargain for an event that occurs more often than some might think.
"While losses aren't common, they aren't rare," says Wilson.
Hungelmann says it's important to choose the right amount of coverage for any disaster that might strike.
"If your basement fills with sewage or flood water, you're going to have a real mess on your hands," Hungelmann says. "Be sure that you have enough coverage to rebuild if such damage occurs."