Are we covered for water damage or sewer backup?

Coverage for water damage or sewer backup depends on the direct physical cause of the loss – in other words, “where” the water originated from and “how” it entered the building, as well as the specific coverage included in your policy. Many commercial property policies cover sudden and accidental water damage from sources such as a burst pipe or accidental plumbing leak. However, damage caused by flooding, surface water, groundwater, or sewer and drain backup is often excluded unless additional coverage has been added to the policy. Sewer backup coverage is typically available by endorsement and can help cover damage caused when water or sewage backs up through drains, toilets, or sump systems into the building.

It is also important to understand that insurance generally does not cover long-term leaks, repeated seepage, deferred maintenance, or mold resulting from ongoing moisture issues.

Because water losses can become very costly and disruptive, it is important to review your property coverage regularly with your NCG Account Manager to help ensure your organization has the appropriate protection in place.