My Sewer Backup Claim Was Denied in NYC: What Now?

A denial is not always the final word. Sewer backup claims in New York City are denied for a few common reasons, and some of those denials can be challenged. Start by finding out exactly why your claim was denied.

Why Do Sewer Backup Claims Get Denied?

• No water backup endorsement. Standard homeowners and renters policies do not cover sewer or drain backup unless you added this coverage.

• The flood exclusion. When the city sewer is overwhelmed during a storm, insurers often call it flood damage. A flood policy covers backup only when a flood directly caused it.

• Maintenance or gradual damage. Insurers may say the backup came from a blockage or leak that built up over time.

• Endorsement limits. Many backup endorsements have a low dollar limit, so part of the loss may be paid and the rest denied.

Was the Blockage on Your Property or in the City Sewer?

This question often decides the claim. Some New York disputes have turned on where the blockage started and whether the insurer could prove its exclusion applied. When policy wording can be read more than one reasonable way, exclusions are generally read in the policyholder's favor. A plumber's written report on the cause and location of the backup can make a real difference.

What Should I Do After a Denial?

• Get the denial in writing, with the exact policy language it relies on.

• Read your full policy and every endorsement, including the declarations page.

• Get a written plumber report on where and why the backup happened.

• Keep your photos, video, cleanup records and receipts.

• Contact the NYS Department of Financial Services Disaster Hotline at (800) 339-1759.

• Have a licensed public adjuster review the denial.

I Rent. Who Cleans Up the Sewage?

In NYC, your landlord is responsible for making the apartment livable again. Read Is My Landlord Responsible for Flood Cleanup in NYC?

How Do I Prevent the Next Backup?

NYC recommends that homeowners consider a backwater valve, also called a check valve, which closes when sewer water rises and helps keep it from coming up through basement drains and toilets. Also ask your agent about adding or raising water backup coverage.

Need Sewage Cleanup or a Claim Review?

Sewage water is a health hazard, so cleanup should be done safely. Call Flood Cleanup NYC at 212-600-9290, or see our Insurance Claims page.

Public adjusting services are provided by a New York licensed public adjuster under a separate written contract. You do not have to use our cleanup services to hire the public adjuster, and you do not have to hire the public adjuster to use our cleanup services.