If your septic tank ruptures due to a defective seal, bolt or panel, some of the damage that it causes could be covered under the terms of your homeowner's insurance policy.Ironically, it's unlikely that your policy will cover the cost of repairing your tank or fixing the damage that it causes to your yard.Rather, any covered damages associated with your ruptured septic tank are liable to be confined to properties that abut yours.ronically, it's unlikely that your policy will cover the cost of repairing your tank or fixing the damage that it causes to your yard. Rather, any covered damages associated with your ruptured septic tank are liable to be confined to properties that abut yours.