.03 Offer of Coverage.

A. An insurer that issues, sells, or delivers a policy of homeowner’s insurance in the State shall at the time of application and renewal offer in writing to provide coverage for loss that:

(1) Is caused by or results from water that backs up into a dwelling or other covered structure through a sewer or drain, regardless of the origin of the water; and

(2) Is not caused by the negligence of the insured.

B. An insurer that is required to offer coverage under §A of this regulation shall offer the coverage for loss that is caused by or results from water that backs up through a sewer or drain with limits equal to the limits of liability for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage under the policy of homeowner’s insurance.

C. If an insurer makes an offer of coverage that meets the requirements of §B of this regulation, the insurer also may offer the coverage for loss that is caused by or results from water that backs up through a sewer or drain with:

(1) Limits that are less than the limits for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage under the policy of homeowner’s insurance; or

(2) A combined single limit for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage that is equal to or less than the highest limit of liability under the policy of homeowner’s insurance.

D. The offer of coverage required by §A of this regulation may be met by using the form under COMAR 31.08.18.02.