Home Peril and Valuables Endorsements

Water Backup and Mold Endorsements

Unendorsed ISO homeowners policies exclude damage caused by water that backs up through sewers or drains. They also exclude water that overflows or is discharged from a sump pump or related equipment. If a heavy rainstorm causes municipal sewers to fail and dirty water rises through your basement floor drain, an unendorsed policy offers no reimbursement for that direct physical loss.

You can modify this restriction by attaching the Water Backup and Sump Discharge or Overflow endorsement. This endorsement adds coverage for direct physical loss caused by water backing up through sewers or drains. It also covers water overflowing from a sump pump, sump well, or related equipment. However, the Water Backup endorsement does not cover flood water or surface water entering the home from the outside. The endorsement commonly has a stated coverage limit, and you must check the endorsement and policy for the applicable deductible.

Standard ISO homeowners policies provide limited coverage for fungi, wet or dry rot, and bacteria that result from certain covered losses, but generally exclude other such damage. Standard ISO homeowners forms already provide limited coverage for eligible fungi, wet or dry rot, and bacteria losses; an endorsement can change the applicable limits or terms. Coverage generally requires the fungi, rot, or bacteria to result from an eligible insured peril that occurred during the policy period, subject to the endorsement's other conditions.

Subject to its conditions and limit, the Fungi endorsement can cover removal, cleaning, and necessary tear-out and replacement. It also covers testing when there is reason to believe fungi, rot, or bacteria are present. The applicable fungi limit generally applies in the aggregate to covered fungi, wet or dry rot, and bacteria losses during the policy period, not to every covered loss.