Endorsements & Optional CoveragesQuestion 90 of 474
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 covered in full because water damage from any sudden and accidental source is a named peril in the HO-3
b.The loss is excluded; a Sewer/Drain Back-up endorsement would be needed to cover it
c.The loss is fully covered under Coverage A dwelling
d.Only the contents are paid, under Coverage C, because the HO-3 excludes sewer back-up for the building but not for personal property
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 endorsementThis topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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