Making an Insurance Claim for Septic System Failures

A septic system pulls water and waste away from your home and into a tank and nearby drain field on your property. You may not see the pipes and tanks, as they’re buried underground. However, if they malfunction, you’ll notice the issue quickly. 

A septic system failure could damage your yard and landscaping. Sometimes, the contaminated water can back up into your home and damage the structure and your possessions. 

A standard homeowners insurance policy rarely, if ever, covers septic system failures. However, it may cover damage to the tank or pipes if it’s caused by a covered peril, such as a lightning strike. If you have one of these systems, consider adding to your policy or shifting the coverage model. 

What Happens When Septic Systems Fail? 

A septic system is made of pipes that collect waste and deliver it to a tank. Solids sink, and fluids percolate into a drain field in your yard. When things go wrong, the signs are hard to ignore. 

Septic system failure can cause the following symptoms:[2]

• Slow-draining sinks, showers, and bathtubs
• Standing water near the tank or in the drain field 
• Bad odors in your yard near the system 
• Spongy, bright, healthy grass growing around septic components 

As a homeowner, you’re responsible for maintaining your septic system. If it fails, waste can contaminate both your yard and the neighborhood. You could face serious consequences for leaving this unattended. You may also face tight deadlines to fix it.

Does Homeowners Insurance Cover Septic System Damage?

A standard homeowners insurance policy rarely, if ever, covers costs associated with repairing or replacing septic system components unless the damage is caused by a covered peril, such as an explosion. This chart can help you understand what is and isn’t covered in a standard policy. 

	Always	Sometimes	Never
Septic tank cracks		X
Septic tank needs to be unclogged			X
Household items are ruined when the system floods the home		X
You must live elsewhere while septic cleanup happens		X

Types of Damage Typically Covered

A standard homeowner insurance policy does not cover most types of septic system failure. The pipes and tanks that make up your septic system sit far outside your home, so covered events like fires and hailstorms rarely harm them. Instead, they’re typically damaged due to neglect or wear and tear. Standard plans don’t cover these issues.

Types of Damage Sometimes Covered 

Some insurers will cover damage caused by a failing system.[3] If waste-tinged waters ruin your furniture and walls, you could file a claim within this policy and replace what was destroyed. You might also file successful claims for living expenses while your home is repaired. However, a policy like this won’t cover the damage to the septic system itself. 

Some insurers may also cover cracks in septic tanks made of fiberglass.[4] However, these policies may not cover the pipes that lead to the tank. And not all insurance plans will make this decision. There is variation in coverage specifics between different providers, so check your policy carefully.

Types of Damage Rarely Covered 

Many septic system failures are caused by regular wear and tear and neglect. Pipes clog, tanks crack, and water backs up. This problem (and the associated damage) is rarely — if ever — covered by a homeowners insurance plan. You’re required to do routine maintenance and keep systems working properly. 

Septic systems don’t last forever.[5] Tanks may last for about 50 years, and drain fields can last for about 30 years. If your system fails because it’s old, your homeowners insurance won’t pay for the fixes you need. 

Understand the Role of Additional Products 

While a standard homeowners plan may not provide robust protection, you can shop around for solutions that will. 

Three products might work to protect against septic tank damage:

• All perils policies. Some homeowner insurance plans cover all problems (or perils) aside from those that are specifically named.[6] You might find a plan like this that doesn’t exclude septic damage and gives you the protection you need. 
• Endorsements. Some insurance companies offer alterations — or endorsements — that can increase your coverage.[7] A plan that covers sewer and drain backups might cover internal damage for septic backups. 
• Home warranties. A home warranty isn’t an insurance plan, but it can provide intense protection for septic systems. These plans offer homeowners protection for the cost of repairs or replacement of major home systems, such as septic systems. However, homeowners may be limited to in-network repair services. 

If you have a septic system, it’s worthwhile to investigate your options and determine what is right for you. The fees you pay for added protection could be far less than what you might pay if everything goes wrong. 

How to File an Insurance Claim for Septic Damage & Loss 

Before you file a claim for septic damage, read your policy carefully. Determine if you’ve purchased protection for this type of event. If septic systems are covered, you must file a claim for the protection you’ve paid for. 

To file a claim, follow these steps:

1. Take pictures and videos of all of the damage. 
2. Tape off toilets and sinks, so no one uses them until the problem is fixed. 
3. Call your homeowners insurance agent and explain that you want to file a claim. 
4. Meet an insurance adjuster at your home to inspect the damage in person. 

Know that any claim you file will go on your permanent record. If you file too many claims in a short period, your insurance company could cancel your policy at renewal time or raise your rates. Another insurance company could also decline to give you a new policy. 

It’s reasonable to file a claim when the damage is both covered and extensive. Your policy is designed to help you recover from catastrophes just like this. But if the damage is small or not covered at all, don’t even bother asking your insurance company for help. 

How to Maintain Your Septic System 

Maintenance is the best way to keep your home safe from unexpected claims. An inspection can help. 

Every 3 years, hire an expert to inspect your system.[8] The professional will look at the sludge and scum layers to determine whether you need to pump out the mess. Scoping can ensure that the pipes leading to the tank are clean and clear. An inspector may also help you understand when to start budgeting for a septic system replacement. 

Homes with septic systems should also pay attention to how much is going into and out of the system. Don’t overwhelm the system, especially when the groundwater levels are high. 

These maintenance steps will be more important in the future. Researchers say rising groundwater levels due to climate change could make septic system issues more likely.[9] The maintenance work you do now could save you a lot of money down the road.