Just one inch of sewer backup water can cause $25,000 in damage.
Usually, the floor and walls must be replaced, along with any appliances or other personal property caught in the sewer backup. Homeowners who faithfully pay premiums for years or decades expect their insurance companies to quickly make good on these losses.
Unfortunately, that is not always the case.
Insurance company duties are clear in these situations. The company must promptly, thoroughly, efficiently, and transparently investigate every sewer damage claim. If the company fails to live up to any one of these commitments, a New Orleans insurance lawyer must force the insurance company to do the right thing.
What “Sewer Damage” Means in a Homeowner’s Context
Most New Orleans-area homes were built before 1980. Furthermore, the tropical storms that periodically pound Louisiana put a lot of stress on aging sewer lines and other infrastructure. “Sewer damage” can refer to several related events, including:
- Sewage backup into the house through drains, toilets, and/or sewer clean‑outs,
- Damage to sewer or sanitary lines inside or under the house,
- Damage caused by collapse, root intrusion, or aging of sewer pipes, or
- Secondary damage, such as water damage, mold, structural damage, and/or ruined belongings.
Sewer damage cleanup is quite complex. Because sewer water is contaminated, cleanup, disinfection, and sometimes mold remediation are key components of restoration.
Insurance Coverage: What is Typically Included or Excluded
Understanding what your homeowners’ insurance does and does not cover is crucial. Here are the main points to watch out for.
A sudden, accidental event is one of the most common kinds of sewer damage claims. Most homeowners’ insurance policies pay for damage caused by a fallen tree, vandalism, fire, or other covered peril. This coverage usually applies to structural damage (walls, flooring, drywall) as well as inside personal property.
Most homeowners’ insurance policies exclude sewer backups, water/sump pump overflows, and service line/sewer pipe issues, unless the policy includes a relevant endorsement or other add-on.
If a sewer backup or related damage forces occupants to leave because it is uninhabitable (as opposed to unpleasant or uncomfortable), the policy, or an aforementioned endorsement, may cover living expenses, up to the policy limit.
Typically, insurers also pay for cleaning, disinfecting, repairing structural damage, removing ruined personal property, and sometimes mold remediation (if mold is tied to the covered event).
These payments are subject to common sewer damage exclusions and limitations in homeowners’ insurance policies. These exclusions and limitations include:
- Wear and tear – Gradual deterioration, corrosion, root intrusion over a long period, or neglected plumbing systems are often not covered. Homeowners have a responsibility to maintain sewer systems.
- Flood damage – Damage from external flooding (rain, rising rivers, storm surges) is typically not included. Separate flood insurance policies, usually NFIP or private flood policies, cover this damage.
- Sewer backups without endorsement – If the policy does not have a sewer backup and water backup rider, the insurance company almost always denies damage claims related to sewer backups or drain overflows.
- Sewer line damage – Standard policies might cover damage caused by some perils (sudden events like fire or vandalism), but often exclude the cost of repairing or replacing the sewer line due to deterioration, root intrusion, or shifting soil unless a specific service line or buried utilities endorsement applies.
Most policies and endorsements impose limits (e.g., backup coverage up to $5,000‑$25,000) or waiting periods (you may not be covered for damage occurring immediately after you add the coverage).
What Homeowners Should Check in Their Policies
To avoid surprises, homeowners should proactively review their insurance policy. A New Orleans insurance lawyer can assist with this review. Key items to check include:
- Policy declarations, endorsements, and riders – A comprehensive sewer backup, water backup, drain backup, and sump pump overflow endorsement often closes some of the coverage loopholes discussed above.
- Definition of covered perils – Many homeowners skip past the definition section at the beginning of an insurance policy and focus exclusively on coverages and limitations. Verify the meaning of “sudden and accidental.” Wear and tear, earth movement, and tree root intrusion usually are not sudden and accidental covered perils.
- Deductibles, limits, and sub-limits – Never assume deductibles and limits are uniform throughout the sewer damage section of a policy. Frequently, personal property damage, structural damage, and/or mold remediation have separate caps. Also watch out for waiting periods and ALE (additional living expense) coverage.
- Local laws and code requirements – Remodeling projects have code compliance issues and costs. These requirements usually include permits and specify the materials used. These costs usually aren’t covered, unless the policy includes ordinance & law coverage or a code upgrade clause.
On a related note, homeowners and neighborhood associations often have rules that govern remodeling and other similar projects. Homeowners’ insurance policies usually exclude these costs because, as a general rule, insurance only pays for the bare minimum.
Steps to Take if Sewer Damage Occurs (Before and During the Claim)
Acting quickly and properly can make the difference between claim approval and claim denial. The homeowner, not the insurance company, has the burden in this area.
Always put safety first. Sewage is a hazardous material. Wear protective gear (gloves, boots, masks) and don’t forget to shut off the power since, more than likely, electrical systems are probably wet.
Immediately document everything. Take lots of photos and videos from multiple angles, before doing any cleanup or repairs, if possible. Pre-damage pictures are useful as well. Add personal notes that include the date and time, what you saw, what you smelled, and how the water entered the space.
Most insurance policies include a duty to mitigate (voluntarily reduce) damages. Remove standing water, use fans and dehumidifiers to circulate and dry the air, and board up damaged walls.
Failure to fully mitigate damages typically reduces claim payout. Most insurance companies also require prompt notice (usually within three days).
Do not wait for an adjuster to obtain professional assessments and estimates from plumbers, cleanup companies, and other necessary providers. Keep all records from these contacts, as well as all receipts and records for temporary housing, cleanup costs, supplies, protective gear, inspections, and so on.
Connect With a Tough-Minded New Orleans Attorney
Insurance companies take advantage of policyholders if they can. For a confidential consultation with an experienced sewer damage insurance lawyer in New Orleans, contact Insurance Claim HQ. After-hours visits are available.
