What Is Service Line Coverage?
You may not know it, but as a property owner, you are responsible for service lines, including water, sewer, power, gas, phone, and cable, where these lines leave the street (maintained by your municipality) and enter your private land (your responsibility).
Service line coverage is a type of insurance you can purchase, usually as an add-on to your homeowner policy, to cover damage to those lines when they are underground.
How Do Service Lines Become Damaged?
It is surprisingly easy for various service lines to become damaged:
- Ground freezing and frost heaves
- Tree and shrub root invasion
- Rodents and other small animals
- Wear and tear
- Defect in the original materials
- Mechanical failure
- Rust and corrosion
- Collapse from weight above
- Excavating or landscaping accidents
- Stray electrical current
Why Is Service Line Coverage a Smart Choice?
Damage to service lines due to these causes isn’t often covered by a regular homeowner policy. But repairing service lines can be outrageously expensive. There’s the cost of the line repair itself. And you may also have to pay large excavation fees and cover the cost of landscape repair, like replanting or lawn reseeding. Ignoring the repair is usually not an option, since you rely on those services for day-to-day living.
For a small amount each month, service line coverage gives you back thousands in protection. Many property owners feel it’s a small investment to make in return for the peace of mind that comes with knowing their utilities are protected. The insurance deductible is relatively small too: typically only $500 per claim.
What’s Not Covered by Service Line Insurance?
While service line insurance affords property owners a pretty broad coverage, there are a few scenarios that usually are not included:
- Wear and tear from negligence or intentional misuse of service lines
- Condominium and HOA properties
- Service lines repaired using your own contractor without permission from your insurance company
- Utility lines that are not underground
- Water well damage
- Fuel tanks
- Heating and cooling systems
- Septic systems
- Service lines that run through a body of water
- Lines or piping that are dormant (installed but not in use yet)
If you’re exploring service line coverage, be sure to inquire about what is covered and not covered so you understand the limitations of your policy.
Is Service Line Coverage Right for You?
There are few property owners who wouldn’t benefit from service line coverage. If you are a new property owner and unsure of the integrity of your underground utility lines, this type of insurance makes sense. Likewise, if you are in an older home or are considering renovations, including major landscaping that involves digging. Property owners in colder climates also find service line coverage invaluable.
Considering service line coverage for your property? Give us a call at 360-514-9550, or contact us online for more information. Davidson & Associates Insurance independent agents can assemble the right policy for you from the hundreds of homeowner insurance products at our disposal. Don’t wait until a service line disaster leaves you without utilities or drains your bank account. Reach out today.
