Are Septic Systems Covered by Home Insurance?
What is a septic system?
A septic system collects, treats, and disposes of sewage from a home into a buried, watertight septic tank. Bacteria break down the solid waste while the treated wastewater is discharged into a dedicated drain field on your property.
Understanding home insurance coverage
A standard homeowners insurance policy’s Other Structures coverage may help reimburse for damage to a septic tank or its pipes caused by a covered peril, such as a lightning strike. However, a policy typically does not cover septic system failures caused by normal wear and tear or negligence.
Coverage for septic systems
Covered perils
A peril is an event that causes damage to your property. An open perils policy, such as HO-3, will cover anything not excluded from your policy. Named perils coverage will only cover losses caused by perils specifically in your policy. Not all insurers offer coverage for both open perils and named perils.
Exclusions
Exclusions specifically state the types of risk not covered by an insurance policy.
Some exclusions include:
- Damage due to lack of maintenance
- Floods or earthquakes
- Improper installation, such as a septic tank not buried deep enough
- Pre-existing conditions
- Normal wear and tear
How can I get additional coverage for my septic system?
A water backup and sump discharge or overflow endorsement may be available to help pay for damages, such as water backing up into your home or overflowing from your sump pump. It may also provide coverage for damaged items such as carpet or flooring.
What should I do if my septic system fails?
Consult with a local septic system service provider, your local health department, and an onsite wastewater treatment regulatory agency.