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00 <br /> LEAGUE OF CONNECTING & INNOVATING <br /> MINNESOTA SINCE 1913 <br /> CITIES <br /> RISK MANAGEMENT INFORMATION <br /> OPTIONAL "NO-FAULT" <br /> SEWER BACKUP COVERAGE <br /> The League of Minnesota Cities Insurance Trust(LMCIT)offers property/casualty member cities <br /> "no-fault"sewer backup coverage. This optional coverage will reimburse a property owner for <br /> clean-up costs and damages resulting from a city sewer backup or from a city water main break, <br /> irrespective of whether the backup was caused by city negligence. <br /> The "no-fault"sewer backup coverage option is intended to: <br /> • Reduce health hazards by encouraging property owners to clean-up backups as quickly as <br /> possible. <br /> • Reduce the frequency and severity of sewer backup lawsuits(i.e. property owners may be less <br /> inclined to sue if they receive conciliatory treatment at the time of the backup). <br /> • Give cities a way to address the sticky political problems that can arise when a property owner <br /> learns the city and LMCIT won't reimburse for sewer backup damages because the city wasn't <br /> negligent and therefore not legally liable. <br /> Many cities and their citizens may find this coverage option to be a helpful tool. However, it's <br /> also important to realize it's not a complete solution to sewer backup problems, and not every <br /> possible backup will be covered. <br /> Which sewer backups are covered? <br /> The"no-fault"coverage would reimburse the property owner for sewer backup damages or water <br /> main breaks,regardless of whether the city was legally liable, if the following conditions are met: <br /> • The backup must have resulted from a condition in the city's sewer system or lines. A backup <br /> caused by a clog or other problem in the property owner's own line would not be covered. <br /> • It's not a situation that is specifically excluded in the coverage. <br /> • The coverage limit has not been exceeded. <br /> Which situations are excluded? <br /> The"no-fault" coverage will not apply in several "catastrophic"type situations. Specifically, <br /> these are: <br /> This material is provided as general Information and is not a substitute for legal advice. <br /> Consult your attorney for advice concerning specific situations. <br /> LEAGUE OF MINNESOTA CITIES 145 UNIVERSITY AVE.WEST PHONE:(651)281-1200 FAX:(651)281-1298 <br /> INSURANCE TRUST ST. PAUL,MN 55103-2044 TOLL FREE:(800)925-1122 WEB:WWW.LMC.ORC <br /> Sewer Toolkit <br /> Other Resources - 14 <br />