Because water damage can happen in a variety of ways, it can occur in a variety of places in the home, not just basements. Water damage - resulting from backed up drains or failed pumps - is one of the most common homeowners insurance claims. It's also the third most costly claim behind fire and liability lawsuits. Many homeowners don't know that water damage incidents like these are often not covered by a basic home policy. That's why it's important to make sure you are protected - from basement to roof - with a water backup endorsement.