What Is Service Line Coverage on Home Insurance?

Home insurance policies protect homeowners from financial losses and safeguard property. While standard policies cover the dwelling and personal belongings, they often have specific limitations. Specialized coverages address these gaps, ensuring more comprehensive protection. Service line coverage is one such option, addressing a unique area of potential vulnerability.

Understanding Service Line Coverage

Service line coverage is an optional endorsement to a standard home insurance policy. It addresses damage to underground utility lines connecting a home to public services. These lines typically include water, sewer, power, natural gas, telephone, and communication lines.

This coverage applies to the segment of lines for which the homeowner is financially responsible. Utility companies maintain main lines, but the portion from the public connection to the home usually falls under the homeowner’s purview. Without this specialized coverage, the homeowner would bear the full cost of repairing or replacing these underground infrastructures.

Common Causes of Damage Addressed

Underground lines can sustain damage in various ways. Tree roots often grow into pipes, causing blockages or cracks. Freezing temperatures can lead to pipes bursting due to water expansion.

Corrosion and general wear are common issues as pipes degrade over decades. Ground shifting from natural settling or nearby construction can stress and break lines. Accidental damage from digging or the weight of vehicles on the property can also cause significant breaks.

Policy Specifics and Exclusions

Service line coverage has a specific limit per occurrence, often $10,000 to $25,000, and includes a deductible. A common deductible is around $500 per incident, paid by the homeowner before coverage begins. If multiple lines are damaged in a single event, such as a tree falling, it is usually considered one occurrence, requiring only one deductible.

Coverage extends to excavation costs, often a substantial part of the repair. It also covers the repair or replacement of the damaged line, and the restoration of landscaping, driveways, or other outdoor property disturbed during the repair process. In some cases, it may even cover expediting expenses to speed up repairs or additional living expenses if the home becomes uninhabitable during the work.

Certain scenarios are typically excluded from service line coverage. Pre-existing damage or intentional acts are generally not covered. Lines owned by the public utility, or those serving multiple properties before reaching the insured’s home, usually fall outside the scope of this coverage. Additionally, lines not connected and ready for use, or those running through a body of water like a swimming pool, are often excluded. Coverage for components like water wells, septic systems, or fuel tanks is also typically excluded, as these are often addressed by other specialized coverages or homeowner maintenance responsibilities.