A frozen supply line burst beneath a Milton home theater last January, sending 9,000 gallons of water into a $150 K media room.
The homeowners had standard $5 K water-backup; repairs topped $143 K out-of-pocket.
Adding a $250 K water-backup endorsement costs less than a streaming subscription—here’s why it’s the smartest upgrade for any finished basement.
1 · Why Standard Policies Fail Finished Basements
- ISO HO-3 default water-backup limit: $5 000.
- Average cost to replace hardwood + theater tech in Milton basements: $112 K (2024 claims data).
- Sewer and sump failures are excluded under flood policies—only water-backup covers them.
2 · How Much Water-Backup Coverage Do You Need?
Rule of thumb: match at least 50 % of the basement’s build-out cost. In Milton luxury homes that equals $200 K–$300 K.
3 · Cost Table — PURE vs Chubb vs HO-3 Endorsement
*2025 GA filings, finished-basement surcharge included; assumes central-station alarm.
4 · Milton Water-Backup Claim Timeline (Real Case)
- Hour 0–4 — Mitigation crew pumps & dries.
- Day 2 — PURE adjuster on site.
- Day 5 — $35 K emergency advance issued.
- Day 11 — Final settlement $147 K; homeowner orders new projector & flooring.
5 · Three Mitigation Moves That Earn Discounts
- Smart leak-shutoff valve — up to –7 % premium
- Sewer backflow valve — up to –3 %.
- Water detection mats — notifications under theater risers.
Frequently Asked Questions
Is water-backup the same as flood insurance?
No. Flood covers water from outside the home (creek overflow). Water-backup covers drains, sewers, and sump pumps inside the home. Does my carrier require a sump pump?
PURE and Chubb do not require one but offer extra discounts when a sump pump with battery backup is installed. Will a $250 K limit cover mold removal?