Septic System Breakdown, Is It Covered?

[singh]

I have a client whose septic system seems to have been damaged by an unknown reason. They had the septic tank cleaned just 3 weeks ago, but today they found out it got filled again. Apparently the septic tank is fine but the leach line is damaged or something. It doesn't seem like it is caused by "wear and tear" or is a maintenance thing. What is the chance that the Farmers Next Gen policy in California will cover this loss? Will they at least pay for the loss of use since it may take 2 months to repair/replace the system.

Thank you in advance and sorry if I posted this in the wrong area (first time poster!)

 

[insurance1822]

There's almost certainly no coverage here.

 

[djs]

What caused the problem? In most septic systems, failures are slow and gradual, especially when it comes to leech line issues. Slow and gradual in any policy is code words for not covered in almost all cases.

Insurance policies usually don't cover loss of use if they don't cover the actual problem. Hmmm, usually is an inaccurate description here. They only cover loss of use when they cover the actual loss.

Rent a port-a-potty for the 2 months? Or just have the septic tank emptied every couple of weeks till new leech lines are dug?

Dan

 

[InsCommentary]

I'm not familiar with the Farmer's HO policy, but if it provides open perils coverage for this property, then the insurer will have to respond to a claim by investigating and determining the cause in order to determine if an exclusion applies.

 

[hesse]

what the damage to the home to trigger the loss?

 

[djs]

I'm not familiar with the Farmer's HO policy, but if it provides open perils coverage for this property, then the insurer will have to respond to a claim by investigating and determining the cause in order to determine if an exclusion applies.

What would be the point? All you end up with is a non-renewal notice unless you show the repairs are done. Filing needless claims is a bad recommendation.

Cause: 95% chance is roots in the leech lines. Now, I haven't seen the property, so there is a chance of something else. But lets be real here..... Its also possible that the leech field is saturated, causing a backup problem. Still not covered.

Seriously, outside of an excavation ooopsss, what can happen to a septic field that would be a covered event? I'm sure there is something, but it doesn't jump out at me.

Dan

 

[InsCommentary]

It's not necessarily a needless claim. The insured doesn't have to prove it's covered, the insurer has to prove it's NOT covered. They can't do that until they can identify what caused the loss, THEN they have to demonstrate that it's excluded by citing specific policy language and its applicability to the loss. I can give you six real-life claims examples that were paid under an ISO HO-3 policy:

Virtual University - Tree Roots and Sewer Lines

 

[djs]

That article doesn't show the claim was covered, just a discussion.

In the article you cited, it says the question is if the tree roots caused the damage to the pipes then there might be coverage, but if the tree roots entered through cracks in the pipe, then there isn't.

As you will see, the key issue revolves around the facts of the claim...did the tree roots cause the damage? If so, the consensus is that there is no exclusion in the ISO HO form that precludes coverage. However, if the roots simply enter through a joint or through a break caused by pressure/earth movement, then there probably is not coverage.

Guess what, its a leech field pipe. By design there are holes in the pipes. These holes are where the tree roots come in from.

Now, I'm a big believer in making the insurance company deny a claim rather then take a chance on not having one paid, but, there are consequences to doing this and I've had people get non-renewed because they didn't fix some damage. You have to set expectations correctly with the client if you have them file a claim that will likely get denied.

Dan

 

[GXR2]

The water and sewer line that exits the house and enters the septic or city sevice is the home owners responsibility. Unless it's an HO5 and not specifically excluded it most likely would be covered. Under a typical HO3 I doubt it.

There are some companies that insure those lines, premium is cheap.

Do a search and see if you can get appointed with a company like that. It will add value to your shop, close a common coverage gap, and help round out.

 

[InsCommentary]

In each instance cited, the claim was paid. The primary point is that NOBODY knows what happened at this point. If the insured wants to eat a several thousand dollar claim that might be covered, he or she is free to choose that path. Or the claim can be filed and the insurer charged with the responsibility of determining the cause and whether it's excluded.

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The ISO HO-3 covers such underground lines, but they may not be covered property under non-ISO HO forms.