South Carolina Personal Lines Practice Exam

What is the coverage limit for Water Backup and Sump Pump Overflow Endorsement?

1. 1000

2. 2500

3. 5000

4. 7500

The correct answer is: 5000

The Water Backup and Sump Pump Overflow Endorsement typically provides coverage for losses resulting from water that backs up through sewers or drains or overflows from a sump pump. The coverage limit for this endorsement can vary based on the insurance policy, but commonly accepted limits are established within the insurance industry. In many cases, a coverage limit of $5,000 is standard for such endorsements. This amount is intended to help homeowners manage the financial impact of water damage due to the specific incidents mentioned, reflecting the average potential loss one might face due to this type of water event. Understanding the significance of this coverage is important; homeowners may not be aware that standard property insurance typically does not cover water damage from backup or overflow, making this endorsement crucial for comprehensive protection.