What is service line coverage?

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Modern homes operate with the help of many different utilities and service lines, such as sewer, water, cable, and electric. Over time, these service lines on your property may suffer damage or fail.

But you might be surprised to learn that when this happens, the owner is usually responsible for repair or replacement costs. Service line coverage can protect you from these unexpected costs and keep your home running again.

Here’s what you need to know about service line coverage:

What is service line coverage?

Utility line coverage is a type of insurance that covers the various utility lines connected to your home. You can purchase this coverage as an add-on or rider to your existing home insurance policy.

Insurance companies offer different coverage options, but service line coverage typically protects your:

  • Buried power lines
  • water pipes
  • Natural gas lines
  • Sewer pipes
  • Cable, internet and fiber optic lines
  • Oil changes
  • Fuel lines
  • steam lines
  • Watering hose

Service line policies can also help cover other related expenses, such as reimbursement for loss of use if you can’t stay in your home until repairs are complete. If the excavation and repair process involves tearing up your driveway, landscaping, or other aspects of your property, your coverage will usually pay to fix those as well.

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What does Service Line coverage protect me from?

If your covered service lines are damaged in a winter freeze, blocked by tree roots, or simply deteriorated over time, this coverage can help cover the costs of digging the lines, repairing them, or replacing them. and restore your property.

Service line coverage protects against many elements, including:

  • Degradation and wear
  • Corrosion or rust
  • Damage caused by trees and roots
  • Insect and rodent damage
  • Mechanical or electrical breakdowns
  • Damage caused by vehicles, such as cars driving on the lawn
  • Weather-related damage, such as winter frosts

If your water main freezes and bursts during a winter storm, for example, you could be in for a serious repair. You may need to hire someone to dig your land with an excavator, replace lines and fill in trenches. This could include replacing any damaged landscaping or resetting a sidewalk that had to be dug up as well. And in the meantime, you may have incurred expenses for a hotel stay for your family, since your house did not have running water.

Good to know: All in all, you could be looking at thousands of dollars in repairs with damage to the service line. The average service line repair costs between $3,000 and $4,000, according to The Hanover Insurance Group. But with service line coverage, eligible expenses and repair costs are covered after you pay your policy’s deductible.

Check: How to estimate the replacement cost value of your home

What type of damage is not covered by service line coverage?

Service line coverage does not protect against everything. Damages it does not cover are called exclusions. This generally includes damage caused by:

  • Septic systems
  • Heating and cooling systems
  • Petrol tank
  • Wires and pipes running through water
  • Buried pipes or wires that are not connected or in use

It is a good idea to ask your insurance agent exactly what is covered and what is not covered before purchasing service line coverage.

How much does service line coverage cost?

The cost of utility line coverage depends on many different factors, such as your location, your insurance company, the age of your home, and even the type of utility lines you have on your property. However, adding service line protection to an existing home insurance policy is relatively affordable, averaging about $20 per year on top of your standard premium, according to American Family Insurance.

The amount of coverage you can get also depends on your insurer and policy. It is not uncommon to find service line coverage limits of up to $10,000 per incident. If you file a claim, you will usually have to pay a deductible before your coverage takes effect.

Let’s say you face an $8,000 gas line repair on your property. If you have service line coverage up to $10,000 with a $500 deductible, you will only be responsible for the deductible. Since your policy limits exceed your repair costs, the carrier will issue you a check for the difference of $7,500.

Home ownership can be expensive, especially if you don’t have the proper insurance coverage. Protecting your home with utility line coverage can give you added peace of mind that your property is protected – above and below the surface.

Learn more: What do the owners Insurance Cover?

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Disclaimer: All insurance related services are provided by Young Alfred.

About the Author

Stephanie Colestock

Stephanie Colestock is a Washington, DC-based writer with over 11 years of experience writing articles on investing, business, and personal finance. She has contributed to outlets such as Yahoo! Finance, MSN, Investopedia, Credit Karma, Credible, etc.

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