Are Sewer Pipes Covered by Homeowners Insurance?

Many homeowners mistakenly believe their standard insurance policy fully covers damage to underground sewer pipes. This article clarifies what is typically covered and what requires additional protection, helping homeowners understand their responsibilities and options for safeguarding their property.

Standard Homeowners Insurance Coverage

A standard homeowners insurance policy provides coverage for sudden and accidental plumbing damage that occurs within the home’s foundation. This includes issues like a burst pipe causing water damage to internal structures or personal belongings. These policies focus on the dwelling and its internal systems.

However, standard policies do not extend to sewer lines located outside the home’s foundation or underground. While sewer lines on your property might fall under “other structures” coverage (Coverage B) if damaged by a covered peril like a vehicle impact or vandalism, this coverage is limited. This “other structures” coverage is often capped at around 10% of the dwelling’s insured value, which might not be sufficient for extensive sewer line repairs.

Typical Exclusions for Sewer Pipes

Standard homeowners insurance policies exclude damage to sewer pipes caused by gradual processes or preventable issues. Wear and tear, deterioration, or aging of the pipes are common reasons for denial. Insurers consider such damage a maintenance responsibility of the homeowner.

Tree root intrusion is another exclusion. Ground movement or settling, poor maintenance, and neglect are not covered. Damage occurring off the policyholder’s property line, such as in the public right-of-way, is the responsibility of the municipality or utility company.

Specific Insurance Endorsements

Homeowners can address gaps in standard policies by adding endorsements to their insurance. Service Line Coverage is an endorsement designed to cover the repair or replacement of damaged utility lines running from the public connection to the home. This includes sewer pipes, water pipes, electrical lines, and natural gas lines.

This endorsement covers damage from causes excluded by standard policies, such as wear and tear, rust, mechanical breakdown, freezing, and tree root invasion. Service Line Coverage reimburses for excavation costs, repairs to the lines, landscaping restoration, and additional living expenses if the home becomes uninhabitable during repairs. Average repair costs for service lines range from $3,000 to $4,000, and this coverage can be added for an annual premium between $20 and $50, with a deductible around $500.

Steps After Sewer Pipe Damage

Discovering sewer pipe damage requires prompt action to facilitate a potential insurance claim. Safeguarding the property is a first step, which might involve turning off the main water supply to prevent additional water damage. Documenting the damage thoroughly with photos and videos provides essential evidence for any claim.

Contact your insurance provider immediately to report the claim, as policies require timely notification. Be prepared to provide details about the damage and its cause. An insurance adjuster will be assigned to investigate the claim, assess the damage, and determine if it falls under your policy’s coverage, including any endorsements. Reviewing your policy documents and declarations page is important to understand your coverage limits, deductibles, and any applicable endorsements like Service Line Coverage.