Big winds usually grab the headlines. But as recent mega-storms such as Katrina and Sandy and the Texas deluges have shown the real punch of these storms comes in the form of rising water and water damage.  Very few property insurance policies provide flood/rising water coverage outside of a separate FEMA endorsed flood policy.  We all understand this fact.  But how many of us are aware that the new trend in property coverage is to exclude backup/overflow coverage?  Backup/overflow describes not water damage resulting from a broken pipe or a plugged drain within the property, it describes water damage to the property resulting from water backing up and overflowing inside the property where the cause of the backup is outside the property.

This is likely to be a more significant concern for communities and homeowners in coastal areas whose property is inland of a likely tidal surge or rising sea level.  A tidal surge or rising water levels can pressurize city sewer lines so that water (and, of course, sewage) backs up into the property and overflows sinks, shower/tub drains and toilets.  As with any overflow or leak, the water can result in damage to the property due to saturation of structural and cosmetic elements, but also promote the growth of mold.  “Brown water”, as sewage waters are called, is particularly troublesome given the constituents of the waste water.  Water from a leaking pipe is likely clean and the water need only be mopped up and the area dehumidified.  Brown water carries with it the risk of disease along with the likelihood of staining cosmetic surfaces, as well as being nutrient rich for molds and fungi. Thus consequential damages are much more likely and the repair of which is more involved and expensive.

Homeowners and associations are advised to pay particular attention to their property policies upon renewal and determine with the aid of their insurance broker whether their coverage for backup/overflow events and damages has been reduced or eliminated.