failed septic tank causing water backup and tenants vacating

[Zoe Lee]

We bought a multiplex earlier this year running on a septic system. Something happened and caused the sewer water to backup into the units. We have already ended the leases with the tenants. Right now in the process of fixing the septic system.

This is going to cost us dearly.

Our home owner insurance declined our claim citing that the problem has been ongoing. We hired multiple contractors to diagnose but on one was able to give us a definite answer. A couple of old tenants also spread rumors about possible causes but none proven accurate. But the insurance adjuster talked to one of them and convinced that this is not accidental.

The units had clogged toilets a few weeks back. We hired a plumber to replace the clean out line. One week later the water backup happened. But there is no conclusion as to whether the plumber did caused the water backup.

So now we probably have to pay out of pockets to restore, fix the septic tank.

This is our third year being a landlord. Definitely very stressful and scary.

I would like to have some advice regarding how to protect ourselves a little better in the future.

A couple of things I can think of:

1. buy landlord insurance (to cover rent loss)

2. add sewer backup to our home owner insurance

3. ask the tenants to buy renter's insurance (what if they say no?)

4. add water backup valves to the sewer line? (is there such a thing?)

Thanks very much!

Zoe

[Marc Winter]

@Zoe Lee, sorry for that dirty problem.  I'd definitely hire an insurance adjuster to investigate the situation--they don't charge unless/until they collect.

To answer your questions:

1. buy landlord insurance (to cover rent loss)  YES, DEFINITELY

2. add sewer backup to our home owner insurance  MANY WATER COMPANIES OFFER SEWER LINE AND WATER MAIN INSURANCE--CHECK THAT OUT FIRST.

3. ask the tenants to buy renter's insurance (what if they say no?)  WE MAKE IT MANDATORY THAT TENANTS CARRY RENTER'S INSURANCE NAMING US A PARTY OF INTEREST.

4. add water backup valves to the sewer line? (is there such a thing?)  THERE ARE ANTI-BACKFLOW VALVES, YES, BUT THEY ARE PRICY FOR WHAT IS PROBABLY A 4" SEWER LINE, PLUS INSTALLATION.