What Do You Need to Know About Service Line Insurance?

Sewer pipes; electrical lines; water lines: Underground utility lines keep our modern lives comfortable and functional and yet we never think about them until they cause a problem. That’s because many homeowners are unaware that they are financially responsible for the maintenance and repair of underground lines on their properties. 

A type of insurance that covers damage to underground utility lines, service line coverage is becoming increasingly important for property owners. In many cases, the cost of repairing or replacing a damaged service line can be significant, and may not be covered by traditional homeowners insurance policies. Is this news to you? Here’s what you need to know about service line insurance, and why you might consider adding it to your current policy.

What is Service Line Insurance?

Service line insurance is a type of insurance that provides coverage for damage caused to underground utility lines, such as sewer pipes, electrical lines, and water lines. Typically, homeowners – not the utilities themselves – are responsible for the maintenance and repair of these service lines, and the cost of repairing or replacing them can be quite expensive. That’s because these lines are often located under driveways, sidewalks, and other areas that are difficult to access, which can make repairs costly and time-consuming.

Until about five years ago, service line coverage was very rarely available as an add-on to homeowners’ policies, so these costs were entirely out of pocket. But newer service line policies provide a safety net for property owners, giving them peace of mind knowing that they are protected in the event of an unexpected repair or replacement. 

What Does Service Line Insurance Cover?

Service line coverage is usually an add-on service to your home insurance policy. In addition to costs associated with repairing or replacing damaged lines, service line policies mitigate restoration costs for landscaping, hardscaping and other property that may be affected by the repair or replacement.

Some service line insurance policies also cover the cost of damage caused by tree roots, which can invade and damage underground service lines. This is especially important for homeowners and businesses located in areas with mature trees, where roots can grow quite large and cause significant damage over time.

What DOESN’T Service Line Insurance Cover?

When considering service line insurance, it is important to understand what is covered under the policy and what is not. While most policies cover damage caused by wear and tear in addition to damage caused by accidents or weather events, they usually do not cover damage caused by neglect or intentional damage.

It is also important, of course, to understand the coverage limits and deductibles associated with your service line insurance policy. Because coverage limits vary by insurer and policy, it is important to read yours carefully and ascertain whether it offers an appropriate amount of coverage and a reasonable deductible for your needs.

Is Service Line Insurance Worth Adding to My Policy?

While service line insurance is typically an optional add-on to your homeowners insurance policy, it is relatively inexpensive compared to the cost of repairing or replacing a damaged service line. If you live or own a business in an area with mature trees or other environmental factors that may increase the risk of service line damage, it is particularly worth adding this coverage. 

If your policy was written more than five years ago, or if it is a more recent policy but does not include service line coverage, you are financially responsible for repairing or replacing damaged underground utility lines. The small investment of a service line add-on helps ensure that your property is well-maintained and protected from the unexpected for years to come. Want to make sure you have the coverage you need? Drop us a line to talk about your property insurance policy.