With the recent rains and flooding in various parts of Michigan, we have received a number of calls regarding binding authority for Back Up of Sewers & Drain coverage. To that end, we would like to remind you of current rules associated with this issue:
Coverage may be provided for loss caused by water which backs up through sewers or drains or which overflows from a sump. This coverage is not available for risks located in flood hazard areas. The Policy deductible, or $500, whichever is greater, applies to each loss under this endorsement. Limits in excess of $10,000 are not available to Form HO-0004.
NOTE: Coverage should not be bound if there is a power failure or if a flood watch or warning has been issued by the U.S. Weather Bureau or other public information source in the area.
Michigan
Back-Up of Sewers or Drains – All Forms
