Policy Issuance 2-97

April 15, 1997

Subject: Intentional Flooding of Basements to Prevent Sewer Backup

Background: Community officials in some flood-threatened communities in the Upper Midwest have recently issued advice to property owners to intentionally flood their basements to prevent sewer backup. Another benefit they cited is the possibility of helping equalize hydrostatic pressure to reduce or prevent damage to basement walls and floors. Loss caused by hydrostatic pressure is not covered by the Standard Flood Insurance Policy (SFIP) (Article 3.B.4). The SFIP also does not cover a loss caused intentionally by the insured (Article 3.C.4).

Loss caused by sewer backup is covered by the SFIP subject to an additional deductible if the following four conditions are met (Article 3.B.3):

  1. There is a general and temporary condition of flooding in the area,
  2. The flooding is the proximate cause of the sewer backup,
  3. The sewer backup damage occurs no later than 72 hours after the flood has receded, and
  4. The insured building must be insured, at the time of the loss, for at least 80% of its replacement cost or the maximum amount of insurance available under the National Flood Insurance Program (NFIP).

Policy Statement: In recognition of the savings from reduced damages and reduced cleanup expenses as a result of intentionally flooding basements, I hereby waive the SFIP provision excluding loss intentionally caused by the insured when the insured floods the basement to prevent sewer backup, subject to the following conditions:

  1. The additional deductible for sewer backup losses applies.
  2. The first three conditions listed above for sewer backup coverage are deemed met if a duly authorized community official advises flooding basements for the area in which the insured building is located.
  3. The insured building meets the fourth condition listed above for sewer backup coverage regarding insurance to value.
  4. The basement coverage limitation applies. Payments will be made only for resulting damage to the items listed in Article 6.F of the SFIP.
  5. The exclusion in Article 3.B.4 of the SFIP for loss caused by freezing, thawing, or the pressure or weight of ice or water applies.

This waiver is effective March 21, 1997, when community officials in the Upper Midwest began issuing this advice and applies in all participating communities in the NFIP until rescinded.

Last Modified: Tuesday, 30-May-2006 09:56:44 EDT