Chapter 14. Coverage for Loss Caused by Water That Backs Up Through Sewers or Drains
Regulation .01 Scope.LinkCopy Citation
This chapter does not apply to loss that is caused by a flood.
Regulation .02 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Backs up” means reverses course, discharges, escapes, overfills, or overflows.
(2)
“Drain” means a line, pipe, or any other part of a system that:
(a)
Is located inside or outside of a dwelling; and
(b)
Drains water away from the dwelling.
(3)
“Dwelling coverage” means coverage under a policy of homeowner’s insurance for losses resulting from damage to:
(a)
The dwelling of the policyholder; and
(b)
Any structure of the policyholder that is attached to the dwelling.
(4)
Flood.
(a)
“Flood” means a general and temporary condition of partial or complete inundation of normally dry land areas from:
(i)
The overflow of inland or tidal waters;
(ii)
The unusual and rapid accumulation or runoff of surface water from any source; or
(iii)
Mudslides that are proximately caused by the unusual and rapid accumulation or runoff of surface water from any source and are similar to a river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current.
(b)
“Flood” includes a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters due to the collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by:
(i)
Waves or currents of water exceeding anticipated cyclical levels or suddenly caused by an unusually high water level in a natural body of water, accompanied by a severe storm;
(ii)
An unanticipated force of nature, such as a flash flood or abnormal tidal surge; or
(iii)
A similarly unusual and unforeseeable event.
(5)
Homeowner’s Insurance.
(a)
“Homeowner’s insurance” means insurance for residential property provided under:
(i)
A homeowner’s policy;
(ii)
A condominium owner’s policy;
(iii)
A mobile homeowner’s policy;
(iv)
A renter’s policy; or
(v)
A noncommercial farm owner’s policy.
(b)
“Homeowner’s insurance” does not include an umbrella policy.
(6)
“Loss-of-use coverage” means coverage under a policy of homeowner’s insurance for loss of use of the policyholder’s dwelling.
(7)
“Other structure coverage” means coverage under a policy of homeowner’s insurance for losses resulting from damage to a structure of the policyholder that is on the same property as the policyholder’s dwelling, but is not attached to the dwelling.
(8)
“Personal property coverage” means coverage under a policy of homeowner’s insurance for losses resulting from damage to personal property that is owned by the policyholder or used by the policyholder.
(9)
“Sewer” means an underground conduit used to carry off water and waste matter.
(10)
“Water” includes sewage and other waterborne waste matter.
Regulation .03 Offer of Coverage.LinkCopy Citation
A.
An insurer that issues, sells, or delivers a policy of homeowner’s insurance in the State shall at the time of application and renewal offer in writing to provide coverage for loss that:
(1)
Is caused by or results from water that backs up into a dwelling or other covered structure through a sewer or drain, regardless of the origin of the water; and
(2)
Is not caused by the negligence of the insured.
B.
An insurer that is required to offer coverage under §A of this regulation shall offer the coverage for loss that is caused by or results from water that backs up through a sewer or drain with limits equal to the limits of liability for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage under the policy of homeowner’s insurance.
C.
If an insurer makes an offer of coverage that meets the requirements of §B of this regulation, the insurer also may offer the coverage for loss that is caused by or results from water that backs up through a sewer or drain with:
(1)
Limits that are less than the limits for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage under the policy of homeowner’s insurance; or
(2)
A combined single limit for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage that is equal to or less than the highest limit of liability under the policy of homeowner’s insurance.
D.
The offer of coverage required by §A of this regulation may be met by using the form under COMAR 31.08.18.02.
Chapter annotations
Authority: Insurance Article, §§2-109, 19-202, and 19-216(d), Annotated Code of Maryland
History: Effective date: January 1, 2015 (41:21 Md. R. 1261)
History: Regulation .03D adopted effective November 6, 2017 (44:22 Md. R. 1038)