Does homeowners insurance cover septic tanks?

Standard homeowners insurance may cover septic tanks and systems if they’re damaged by a sudden, unexpected event that your policy covers (like a fire). 

However, home insurance does not cover damage caused by mechanical breakdown, poor maintenance, or gradual deterioration. 

When are septic tanks covered?

Many home insurance policies cover septic tanks and systems if they are damaged by a covered risk, called a peril. Some examples of covered perils for septic tanks include:

• Fire and explosions: As part of your dwelling coverage or other structures coverage, your home’s physical structure and essential systems, like plumbing and electrical, are protected against fire and explosions.

• Storm damage: Similarly, if your septic tank is damaged by acts of God — such as tornadoes, heavy winds, hail, or lightning strikes — your dwelling or other structures coverage should kick in.

• Freezing temperatures: If falling temperatures or snow and ice damage your septic tank, you may be covered — as long as the damage wasn’t from neglect, like failing to properly insulate pipes.

• Falling objects: If heavy objects like a tree fall on your septic system and damage any components, it may be covered.

• Vandalism or theft: Major home systems are covered against vandalism and theft under dwelling coverage or other structures coverage.

• Damage by a vehicle: If a driver crashes their vehicle into your home and damages the structure and its crucial systems, your standard homeowners coverage should help.

It’s important to note that this refers to damage to the tank itself.

When are septic tanks not covered?

Dwelling coverage or other structures coverage may not always protect your septic tank. Here are instances when a standard homeowners insurance policy won’t cover your septic tank:

• Poor installation or maintenance: If you or a contractor installs the septic tank incorrectly or you don’t keep up with the maintenance, it will eventually fail — and home insurance won’t cover the damage.

• Wear and tear: Over time, major home systems naturally degrade and eventually fail. In these instances, homeowners insurance will not cover the cost to replace the septic tank.

• Floods and earthquakes: These are two common homeowners insurance exclusions that typically require a separate policy to be covered. Even then, flood insurance generally excludes septic tanks.

Types of septic tank coverage

Your standard home insurance policy covers damage to your septic tank in specific scenarios. But often, homeowners should consider purchasing endorsements, or add-on coverage, for broader protection against incidents that could damage their homes or septic systems.

Here are some specific types of homeowners insurance that could be beneficial:

• Water backup coverage: Water backup coverage is your best bet for financially protecting your home in the event that sewage backs up into your house. Rather than covering damage to the system itself, this endorsement protects you if the sewage backup damages your home or its contents. Water backup endorsements vary by insurer. Discuss your options with an agent to determine the right coverage limit and deductible for your budget.

• Service line coverage: Service line coverage might not cover your septic tank entirely, but some insurers may extend this coverage to the underground pipes connected to your septic system in the event they are damaged by blockages, collapses, freezing temperatures, tree roots, and pests. Read your policy carefully to understand what is and isn’t covered.

Notably, flood insurance does not typically cover septic systems.

Frequently asked questions

What are common reasons for septic tank system failure?

Septic tanks fail most commonly due to poor installation or maintenance (such as pumping out the system every few years), according to the Environmental Protection Agency (EPA). Using too much water can also be a culprit, as can flushing trash down the toilet or not cleaning the drain field.

How do you maintain a septic tank?

The easiest way to maintain your septic tank is to hire a service professional, such as a plumber, for routine inspection and maintenance. The EPA recommends doing so every three years. At this time, the contractor should pump out the system. You can also maintain your septic system by reducing water use, cleaning the drain field, and being selective about what you flush down the toilet.

Do home warranties cover septic systems?

Standard home warranties generally don’t cover septic systems, but coverage could be offered as an add-on. Thoroughly review inclusions and exclusions when comparing home warranties to ensure your septic system will be covered by whichever company you select.

Does flood insurance cover septic systems?

Traditional flood insurance policies exclude septic systems. Instead, you can get coverage for sewage backup from your septic tank with a water backup coverage add-on to your standard homeowners insurance policy.