Long Island Homeowners Face a Perfect Storm: Why Cesspool Insurance Claims Are Skyrocketing in 2025

Long Island residents are experiencing an unprecedented surge in cesspool-related insurance claims, creating a crisis that’s leaving many homeowners scrambling to understand what coverage they actually need. Insurance companies increasingly require cesspool inspection documentation for liability coverage on older properties. Systems that fail inspection may lose coverage for environmental damage claims, leaving homeowners financially exposed to cleanup costs and third-party liability.

The Perfect Storm: Why Claims Are Surging

Several factors are converging to create this crisis. In the U.S., homeowners’ insurers have seen their net incurred losses increase by 8% annually since 2018–a trend driven by a post-COVID surge in construction and claims costs. “The consequence of the latter is that homeowners’ insurers have seen several years of underwriting losses,” Swiss Re said. This has made insurers increasingly cautious about covering properties with aging cesspool systems.

Long Island homeowners face high premiums due to increased risks from coastal storms, wind damage, and flooding. About 34% of properties on the island have a risk of flooding during the next 30 years, making flood insurance a smart and sometimes necessary add-on. The combination of extreme weather events and aging infrastructure has created a volatile situation for cesspool systems across Nassau and Suffolk counties.

What Standard Homeowners Insurance Actually Covers

Many Long Island homeowners are shocked to discover the limitations of their standard policies when it comes to cesspool issues. A standard homeowners insurance policy will not cover regular wear and tear to your septic tank and attached pipes; the damage must be considered sudden in order to be covered by insurance. Septic tanks are considered built-in home appliances, so your septic tank would be covered by the dwelling coverage component of your homeowners insurance policy in the event that it’s suddenly damaged. The damage must be sudden, meaning you couldn’t have done anything to prevent it from happening.

Their homeowners insurance policies likely will not cover the costs of repairs. “You have to have a flood policy,” said Garrett Guttenberg, of Miller Insurance Agency. “If you don’t, there’s no insurance that is picking that up. Homeowners [insurance] is not paying for any of these rain events, unless it’s coming through a window or it’s coming through a roof.”

The Coverage You Actually Need in 2025

To protect yourself from cesspool-related financial disasters, experts recommend a multi-layered approach to coverage:

• Enhanced Dwelling Coverage: If you’re looking for robust protection for your septic tank, the combination of dwelling coverage, service line coverage, and water backup coverage together can pay for damage to your septic tank, severed pipelines, and any damage to your home as a result of backed-up sewage or water.
• Service Line Coverage: There are several endorsements that you can add to your policy for more coverage, like service line coverage and water backup coverage. This protects the pipes connecting your home to the cesspool system.
• Water Backup Coverage: Essential for protecting against sewage backups that can cause extensive property damage and health hazards.
• Environmental Liability Coverage: Critical for Long Island properties, where groundwater contamination can result in costly cleanup requirements and third-party claims.

The Inspection Imperative

Suffolk and Nassau Counties require cesspool inspection during property transfers to verify system compliance with current environmental standards. Older cesspools often fail inspection due to inadequate capacity, structural damage, or improper placement that violates current setback requirements from wells and water bodies. Real estate transactions frequently stall when cesspool inspections reveal problems requiring expensive repairs before sales can proceed.

Regular professional inspections are becoming not just recommended but essential for maintaining insurance coverage. Working with experienced local providers like ez cesspool can help identify potential issues before they become costly insurance claims. Fully licensed and insured professionals, ensuring safety and peace of mind with every service. Over 20 years of local expertise, providing trusted cesspool and septic tank solutions. Prompt, reliable response to unexpected cesspool and septic tank issues, any time of day. A commitment to delivering outstanding results with top-tier customer service.

Proactive Maintenance: Your Best Defense

The most effective way to avoid insurance claims is through preventive maintenance. You can prevent — or at least delay — damage to your septic tank with regular maintenance. A few ways to take care of your septic tank and get ahead of cesspool damage include: Inspect and pump it regularly. Have your septic tank inspected and pumped once every three to five years by a septic service professional to make sure everything is working properly.

Maintaining your system’s health and stopping blockages requires proper cesspool maintenance and pumping. Nassau County’s seasonal weather adds excessive strain on cesspools; this is why professional cesspool pumping becomes even more critical. Regular cesspool pumping helps Nassau County residents like you evade any impeding leaks, overflows, and foul odors that would otherwise cause expensive repairs and dismantle your routine.

Financial Assistance Programs

Long Island homeowners facing cesspool replacement costs aren’t entirely on their own. The Suffolk County Septic Improvement Program provides up to $10,000 base grant. There is also up to an additional $10,000 that can be awarded to a grantee that installs a pressurized shallow drain field leaching system ($5,000) and/or toward the unit installation for low to moderate incomes eligible applicants ($5,000). Nassau County Septic Environmental Program to Improve Cleanliness provides grant funding of up to $20,000 to repair and replace failing septic systems with nitrogen-reducing system. Nassau County uses $10,000 of federal funds from the American Recovery Plan Act in conjunction with $10,000 from State Septic System Replacement Grant funds.

Looking Ahead: 2025 and Beyond

With the costs of building materials greatly increasing in the past few years, they have caused a surge in costs for insuring properties. These increases on materials and labor can be seen as a direct result of continued supply chain problems that lead to more expensive construction or replacement costs, which result in more expensive insurance claims and rates. This has also been seen to directly influence increases in replacement cost value, which was observed as a primary driver for home insurance rates in recent years.

As we move through 2025, Long Island homeowners must take a proactive approach to cesspool maintenance and insurance coverage. The days of assuming standard homeowners insurance will cover all cesspool-related issues are over. By understanding the gaps in coverage, investing in proper endorsements, maintaining your system regularly, and working with experienced professionals, you can protect your most valuable asset from the growing risks associated with aging cesspool infrastructure.

The surge in cesspool insurance claims isn’t just a temporary trend—it’s the new reality for Long Island homeowners. Those who adapt their coverage and maintenance strategies now will be best positioned to weather the storms ahead, both literal and financial.