Coverage Alert: Changes to Water Back-Up & Sewer Discharge Endorsement

The latest endorsement to provide coverage for water backup and sewer discharge coverage under the Homeowners program has changed.  The 06 12 revisions of the HO 04 84 have been modified and coverage has been reduced.  The new endorsement has the word “Limited” in the title of the endorsement which the previous endorsements did not.  The new endorsement limits coverage to damage “caused by water, or waterborne material which: 1. Originates from within the dwelling where you reside and backs up through sewers or drains”.  The previous endorsement did not specify the origin of the water or waterborne materials.

The limitation of coverage to only water or waterborne material origination in the dwelling occupied by the named insured appears to exclude water or waterborne material that originates outside of the dwelling.  An example of water or waterborne materials from outside the dwelling could be storm water that is prevented from vacating the premises by a blockage of some sort and which backs through a drain into the dwelling.  It could also include waste water from a municipal sewer or storm water drainage system.

Please review accounts to which this endorsement is attached and determine if some notification to the policyholder is appropriate.

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