Introduction to Sump Pumps

Diagram provided by sump-pumps-online.com

What is a Sump Pump? Where can it be found? Do I need a Sump Pump? How do Sump Pumps relate to insurance?

A Sump Pump gets rid of the water that collects around your basement’s walls. It is needed because water pressure on your basement walls can lead to big problems. The water to be Sump-Pumped is collected by perforated piping that runs around the outside edges of your basement. The water is sent to the Sump Pit, which is a basin for the water to accumulate in. The Sump Pump will be found in the Sump Pit, and will most likely be found in the unfinished part of your basement. When the water level in the Sump Pit reaches a certain point, the Sump Pump will automatically turn on and pump the water through another pipe that will displace the water properly.

In Nebraska, not all homes will have the need for a Sump Pump. Those that do, have one for one or a combination of the following reasons:

• The water table below your home is high enough to reach your basement when it rains
• Your home was built in a valley/in a flood-prone area
• The land is improperly graded away from your house
• Your decks, patios, driveway, etc. is improperly graded away from your house
• Your gutters are not adequate/are malfunctioning

These scenarios allow for water accumulation along the sides of your basement, which will eventually lead to seepage, with a possibility of collapsing the basement wall(s) entirely. Seepage alone creates issues of mold and mildew, and will ruin your insulation and drywall.

If your home is built on top of a hill, has properly graded land, pavement, decks, etc. and has properly functioning gutters, you may have no need for a Sump Pump. However, for those who do have one, most insurance companies offer a Sump Pump coverage endorsement that will protect you if your Sump Pump were to fail. Some of these endorsements include coverage for collapse because of a malfunctioning Sump Pump as well. Note that no Homeowner’s insurance policy comes with Sump Pump coverage as a standard coverage.

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.

Riders & Endorsements: Modifying Your Coverage

Two insurance-jargon staples for Homeowner's insurance are Endorsements and Riders, but what do they mean? What does it mean to have a ‘standard’ or ‘non-Endorsed’ policy? What does an 'Endorsed' policy mean?

The ‘standard’ or ‘non-Endorsed’ Homeowner’s policy is the basic, unchanged Homeowner’s policy. This ‘standard’ policy generally is set by the Insurance Services Office (ISO) who makes template policy language for all types of insurance (Homeowner’s, Auto, Commercial, etc). These template policies are then used by actual insurance companies. Some companies use them verbatim, while other companies add or subtract things to change the ‘base’ coverage. However, there are some things that are never included in the ‘base’ form, such as water damages and earthquakes. These and other perils can be insured by separate policies or policy Riders/Endorsements.

Endorsements and Riders are related insurance terms, as both change your standard policy. The difference is that a Rider typically refers to an added coverage to your policy, while an endorsement can be made to add or subtract coverage, or just to change an address or add/subtract a mortgage holder. Either way, if a policy has been changed from its original form, it will then be referred to as an 'Endorsed' policy, and if your policy is referred to as an ‘Endorsed' policy, that typically means that it has added coverages that the ‘base’ policy doesn’t have. An example could be a policy that has Sump Pump Backup coverage added to it. In this case, the Sump Pump Backup coverage would be an example of a Rider, but the policy would be referred to as an 'Endorsed' policy. 

Note from the Author (Nov. 14, 2014): After two years of work, we've entirely redesigned our website! Using SquareSpace, we were able to import this blog and we are continuing our blog there. To find the current version of this article and our new articles, click HERE.