Hard question to answer as no one knows what your Insurance Policy states. For instance, I have some landlords with just Structural and Liability insurance (this is the typical policy) and others have insurance that cover appliances, heating and colling systems and well and sump pump systems. These are typically "supplemental " insurance policies.
In almost every case, I have not seen one that covers your septic/sewer discharge pipe, but many will cover the damage resulting from a backed up sewer pipe that causes interior damage.
You also need to determine WHY the pipes backed up and who's "fault" it is. Is it lack on maintenance, Mother Nature or did the tenants put something down there that caused the problem?
I'll leave you with this note: Be careful on submitting claims. Even denied claims are counted against you. It is very beneficial to have your Insurance Agent review the policy to see if there is coverage before submitting a claim.
Good Luck with everything and if you have any other Landlord / Tenant questions, I'd be happy to answer them for you.
Larry Jensen, Property Manager
St. Lawrence Properties, LLC
Property Management Division
Poughkeepsie, NY... more