What can clients do if a power outage causes sump pumps to fail?

Your clients probably already know the importance of using a sump pump to remove basement water during a flooding event. But what happens if a homeowner can’t use a sump pump because of a power outage?

Industry experts tell Canadian Underwriter there are generally two ways to provide back-up power to sump systems: through a portable generator or a battery-powered back-up device.

“Unfortunately, if the power is out for an extended period of time, the battery will run out,” says Shannon Hoyt, vice president of operations for Central Canada with ClaimsPro. “This is what happened recently during the ice storm in Ontario, where people were without power for over a week.”

The severe ice storm that hit parts of Ontario and Quebec one month ago resulted in power outages to more than one million homes and businesses in Ontario and about 70,000 properties in Quebec, Catastrophe Indices and Quantification Inc. (CatIQ) reported Wednesday. “In some instances, properties were without power for over a week due to strong winds and heavy rainfall that prevented hydro crews from completing necessary restoration work.”

The storm resulted in many downed trees and power lines, flooded basements and damaged vehicles. Initial estimates from CatIQ place insured damage at $342 million.

Glenn McGillivray, managing director of the Institute for Catastrophic Loss Reduction (ICLR), says another event — the 2013 ice storm in the Greater Toronto Area — resulted in millions of dollars in claims due to flooded basements caused by power outages and sump pump failures. “ICLR has been advocating for several years that back-up power sources be required in building codes for sump pump systems.”

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Still, in general, if there is a concern about a power failure, it’s best to purchase a sump pump that has a battery backup, Insurance Bureau of Canada (IBC) tells CU.

Back-up plan

“If there is no power to activate a non-battery back up sump pump, there is not too much a homeowner can do if that is the only source of mitigation,” IBC says. “Homeowners may consider installing a backwater valve in addition to a sump pump, as a backwater valve doesn’t rely on electricity to function.”

Hoyt also recommends homeowners ensure drainage areas around the home are clear by grading soil away from the foundation, cleaning gutters and downspouts regularly or installing dry wells to manage surface water.

When a power outage causes a related failure — sump pumps going offline, causing basements to flood — it’s known as a cascading failure, McGillivray explains. He agrees there are two ways to provide back-up power to sump systems — with a portable generator (located outside the home in a well-ventilated area) and with a marine/boat battery backup power kit that can be purchased at most home improvement stores.

“We lean toward the latter, as there are several issues with portable generators, especially when used incorrectly,” McGillivray says. “We also advocate for a sump system alarm that will inform the homeowner if their sump system is about to be overwhelmed, due to power outage or other failure.”

There’s also a backup sump pump that runs off a home’s water supply. However, McGillivray does not advocate for their use, “as they put great strain on municipal water systems at a time when they are already being stretched to the limit.”

For homes with sump pumps, some insurers may offer discounts. In one case, a Top 5 insurance company doesn’t provide discounts for the presence of a sump pump itself, but they do if there is a backup pump and/or backup power supply. Many municipalities will also offer rebates to help homeowners with the cost of installing flood mitigation devices, IBC adds.

Both local governments and insurers have “skin in the game, so both should take whatever measures they can to inform homeowners of the importance of having properly set-up sump pump systems,” McGillivray says.

“And when there is an insurance claim due to an improperly set up sump, insurers should consider Build Back Better, by putting the insured back in a better, more resilient position,” he says. “Putting insureds back with the same level of risk doesn’t make any sense, and more insurers are getting that now.”

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.