Water and Sewer Backup Insurance for Rental Property Owners

As a rental property owner, protecting your investment is always top of mind. While many landlords focus on property damage from fire, storms, or tenant negligence, one of the most overlooked risks is water and sewer backup. These events can happen suddenly, cause thousands of dollars in damage, and leave both owners and renters frustrated.

In this article, we’ll cover why water and sewer backup insurance matters, what it covers, common causes, preventative steps you can take, and what you need to know about exclusions.

Why Water and Sewer Backups Are So Dangerous

Unlike a slow leak, backups are sudden and destructive. Within minutes, water or sewage can flood basements, damage flooring, ruin furniture, and create hazardous mold growth. The cleanup process is not only expensive but often requires professional remediation to ensure the property is safe again.

For landlords, this means not just repair costs, but also lost rental income while the property is being restored.

Renters May Not Be as Careful as Owners

Even the best tenants may not treat your plumbing system with the same level of care that you would. Small mistakes, like flushing the wrong items, pouring grease down the drain, or ignoring slow drains, can quickly escalate into serious problems.

This is why it’s important to provide clear plumbing guidelines in your lease or house rules. Not only does this help prevent issues, but it also protects you legally if negligence leads to damage.

Recommended Plumbing Policy for Renters

Consider including a renter plumbing policy that outlines what is and isn’t allowed.

Here’s a list of best practices you can require tenants to follow:

• Only flush toilet paper. No wipes (even “flushable” ones), paper towels, or feminine hygiene products.

• Dispose of grease properly. Never pour fats, oils, or grease down kitchen drains.

• Use drain strainers. Catch hair and food scraps to prevent clogs.

• Report slow drains or leaks immediately. Early intervention can prevent major damage.

• Do not use chemical drain cleaners. These can damage pipes; instruct tenants to contact you or a plumber instead.

• Know the main water shutoff. In case of emergencies, quick action can save thousands of dollars.

By putting these rules in writing, you set clear expectations and reduce the risk of costly accidents.

Plumbing Policy for Renters.pdf

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Common Causes of Water and Sewer Backups

Understanding what leads to backups can help you better protect your property.

Some of the most frequent causes include:

• Tree root intrusion into underground sewer lines

• Clogs from grease, wipes, and debris flushed or washed down drains

• Aging or deteriorating pipes that can’t handle normal use

• Overloaded municipal systems during heavy rainfall or storms

Many of these causes are outside your tenant’s control, which is why coverage is so important.

Preventative Maintenance Tips for Owners

While insurance provides financial protection, prevention is your first line of defense. As a landlord, consider these proactive measures:

• Schedule annual sewer line inspections with a licensed plumber

• Install a backwater prevention valve to stop sewage from backing up into your property

• Perform regular drain cleaning to keep lines clear

• Ensure sump pumps are tested and functional before heavy rain seasons

• Replace or upgrade old or damaged plumbing systems before they fail

These small investments can save thousands in repair costs and reduce insurance claims.

What Water and Sewer Backup Insurance Covers

Standard landlord or homeowners insurance policies typically do not cover water or sewer backups. That’s why adding a separate rider or endorsement is essential.

Coverage often includes:

• Cleanup and restoration costs from water or sewage entering through drains, toilets, or sump pumps

• Repair or replacement of damaged flooring, walls, furniture, and appliances

• Mold remediation if growth results from the backup

• Loss of rental income while the property is being repaired (if included in your policy)

What Isn’t Covered

It’s equally important to understand where coverage stops. Most water and sewer backup endorsements do not cover:

• Flooding from outside the property, which requires separate flood insurance

• Gradual leaks or seepage that result from poor maintenance

• Neglect or intentional damage by tenants or property owners

Knowing these exclusions allows you to plan properly and avoid surprises at claim time.

Final Thoughts

Water and sewer backups may not be top-of-mind for rental property owners, but the reality is that they are both common and costly. By educating your tenants, enforcing a plumbing policy, and securing proper insurance coverage, you can protect your property and your income.

At CPIA, our Investor Property Program is designed specifically for landlords and rental property owners. It not only includes water and sewer backup coverage, but also other essential protections such as loss of rents coverage, theft and vandalism coverage, liability protection, and comprehensive all perils coverage. Together, these safeguards ensure that your investment is protected from the unexpected, while also giving you peace of mind knowing your property and income stream are secure.