What Is Service Line Coverage on a Homeowners Policy?

Understanding Service Line Coverage

A standard homeowners insurance policy provides financial protection for your dwelling and personal belongings against various perils. However, these policies typically exclude coverage for damage to underground service lines that connect your home to municipal services. Service line coverage is an endorsement, or add-on, that fills this gap, offering protection for the costly repairs or replacement of these essential utility lines on your property. This coverage addresses the homeowner’s responsibility for maintaining the service lines extending from their home to the street or property line.

Service line coverage applies to exterior, underground pipes and wires that supply services to your home. These include water and sewer piping, natural gas lines, electrical service lines, and communication lines like internet and cable. Some policies also cover geothermal piping, compressed air lines, or drainage pipes. The coverage addresses physical damage resulting in a leak, break, tear, rupture, or collapse of these lines.

Causes of damage covered by this endorsement include tree root invasion, deterioration from rust, corrosion, or wear and tear. Freezing temperatures can cause pipes to burst, while the weight of vehicles, heavy equipment, or shifting soil can lead to breakage. Damage from animals, such as rodents or insects, or mechanical and electrical breakdowns are also covered. Beyond direct line repair, this coverage extends to excavation costs, repair of damaged outdoor property like landscaping or driveways, and additional living expenses if your home becomes uninhabitable during repairs.

Common Exclusions from Coverage

While service line coverage offers important protection, it does not cover all scenarios or types of damage. Damage caused by earthquakes or floods is not covered unless specific endorsements are added to the policy. Reviewing policy language for natural disaster limitations is important.

Policies typically cover only service lines owned by the homeowner and located on their property. Lines maintained by a utility company or located off your property are excluded. Damage that occurred before the policy’s effective date, or pre-existing conditions, are also not covered. Issues related to governmental or utility company property, such as a city’s main water line, fall outside the scope of this coverage.

Exclusions also include damage to underground systems not directly providing service to the home, such as fuel tanks, water wells, or septic systems. Wiring or piping exclusively serving outdoor structures like light fixtures, electric fencing, or swimming pools are also excluded. The cost to clean up or remove pollutants, hazardous waste, or sewage from a service line failure is not covered under this endorsement.

Obtaining Service Line Coverage and Filing a Claim

Obtaining service line coverage is a straightforward process, as it is typically offered as an add-on or endorsement to a standard homeowners insurance policy. When purchasing a new policy or reviewing an existing one, homeowners can inquire about adding this coverage. The cost is generally modest, ranging from $20 to $50 annually, though some policies may offer it for as low as $9 per year. Coverage limits often range from $10,000 to $25,000 per occurrence, with a typical deductible of around $500.

Once damage occurs to a covered service line, filing a claim involves several steps. The homeowner should promptly notify their insurer about the incident. Document the damage thoroughly, including photographs or videos of the affected area. Insurers require detailed information about the nature of the damage, the specific service line affected, and any emergency repairs undertaken.

The insurance company guides the homeowner through the claims process, which may involve sending an adjuster to assess the damage. Homeowners should keep records of all repair expenses, including excavation costs, materials, and labor. While the average cost of a service line repair ranges from $3,000 to $4,000, complex issues can lead to higher expenses, making the coverage valuable for mitigating out-of-pocket costs.