Endorsements & LiabilityQuestion 90 of 158
A heavy rainstorm causes the municipal sewer to back up through floor drains, flooding the insured's finished basement. Under a standard HO-3 without endorsements, what is the likely coverage outcome?
a.The loss is excluded; a Sewer/Drain Back-up endorsement would be needed to cover it
b.The loss is fully covered under Coverage A dwelling
c.The loss is covered as a Coverage C personal property peril
d.The loss is covered because it originated outside the home
Explanation
Water that backs up through sewers or drains is a standard exclusion in the unendorsed HO-3. A separate Water Back-up and Sump Overflow endorsement is required to cover damage caused by sewer or drain back-ups or sump pump failure. Without it, the cleanup and finished-basement damage would not be paid.
Law Reference: ISO HO 04 55 Water Back-up endorsementPractice all 158 questions free — no signup required.
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