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Homeowner sewer‑backup claim prompts legal review after insurer denies coverage beyond $5,000 policy payment
Summary
A January sewer backup prompted an immediate $5,000 policy payment from Calvert City's utility; the insurer denied further coverage citing no city negligence. The board referred the matter to the city attorney to determine legal options and whether the city should provide additional compensation or purchase different coverage.
Board members told the July 16 meeting that a January sewer‑backup incident damaged a property and that the city issued a $5,000 payment promptly under policy terms. The homeowner later submitted itemized expenses that exceed that amount, the board said.
"We supplied that quickly," a committee member said, and added the insurer later denied additional coverage because the adjuster concluded the city was not at fault. The chair said the city attorney is reviewing the denial and the file to determine whether the city should pursue a different insurance product or otherwise address the homeowner's remaining losses.
Members discussed possible reasons for the backup, including rags and grease in the line, and whether additional stormwater or higher flows during a recent heavy rainfall could have contributed. The board said staff will gather records, examine past precedents and report back; members expressed caution about discussing detailed settlement strategy in public while legal review continues.
Next steps: city counsel will evaluate the insurer denial and past city practice on similar claims and advise the board on options; staff will also review whether policy terms need adjustment to avoid similar coverage gaps.
