Service Line Coverage on a Homeowners Insurance

What’s considered a service line?

Cables, water pipes, the main sewer line, and the power lines that run from your home to the street are all underground utility lines that run into your home. You may be responsible for the repair of any of these lines if they break or get damaged.

Which utility lines may be considered a service line?

Do you want to know which all utility lines qualify for a service line? The following are the ones that you can name as a service line.

• Gas and fuel: Fuel lines, natural gas pipes
• Electric: Buried power lines
• Water: Incoming water pipes, sewer lines, drains, internal water pipes, sprinkler pipes, and steam pipes
• Connectivity: Internet lines, fiber optic lines, cable lines

How are service lines usually damaged?

The damage in service lines happens due to the following.

• Corrosion or rust
• Ground frost
• Mechanical failure
• Invasion of a tree or other root systems
• External excavation force
• Accidents in landscaping
• Rodents
• Wear and tear
• Aboveground weight collapse
• Artificial production of electric current
• Freezing

What is service line coverage?

Service line coverage is an optional insurance policy that helps you repair or replace damaged water pipes or utility lines. Typical homeowners insurance policies don’t cover such damages, which can be quite expensive to repair in some cases. Many home insurers offer service line coverage for a small increase in your yearly premium.

There are several situations in which this coverage could be useful. Water pipes, for instance, may corrode and begin to leak beneath the foundation of your home. It can be especially challenging for waste disposal lines. While your home insurance policy is unlikely to cover utility or plumbing damage, service line coverage will cover it.

How does service line coverage work?

Most insurance companies offer coverage as a rider (added coverage) to their standard home insurance policy. Companies differ in what they will insure, but they will offer coverage to the following.

• Pipes for natural gas
• Electrical wires
• Water supply lines
• Pipes for sewage and waste disposal
• Drainage systems
• Telephone and cable lines
• Private wells
• Steam pipelines
• Septic lines

The coverage may also help you pay for landscaping services required to restore your yard following an excavation. It may even cover your expenses if you relocate until the damage gets repaired. You’ll get a reimbursement for the rent of the hotel room and any other temporary, added living expenses.

So, service line coverage is an alternative to the insurance provided by utility companies. However, unlike the coverage from utility companies, which is limited to their lines, a service line coverage will cover all lines under a single policy.

What does service line coverage cover?

It offers protection against the following.

• Wear and tear
• Rust, corrosion, decay, and deterioration
• Mechanical breakdown
• Electrical breakdown
• Tree or root-caused damage
• Vermin, insects, or rodent damage
• Freezing
• Weight of equipment, vehicles, animals, or people
• Collapse
• Disruptions caused by vehicles, such as cars driving over the lawn
• Damage due to weather like winter freezes

What types of service lines are covered?

Some examples of service or utility lines covered by service line coverage include the following.

• Sewer pipes
• Water pipes
• Drain pipes
• Steam pipes
• Internet lines
• Power lines
• Sprinkler pipes
• Fiber optics
• Cable lines
• Natural gas pipes

What doesn’t service line coverage cover?

Don’t expect your service line coverage to offer coverage for the following.

• Fuel storage tanks
• Damage to the water well
• Unconnected and ready-to-use piping or wiring
• Septic systems (a standard home insurance policy covers a septic tank and pipes attached to your home)
• Piping or wiring that runs through a body of water

How much does service line coverage cost?

The coverage typically costs between $20-$60 per year for coverage of $10,000 to $20,000 in addition to your home insurance policy. Service lines can cost anywhere from $1,000-$4,000 to repair or replace. So, it will be ideal to buy this coverage if you’re concerned about paying the entire repair bill out of pocket.

Numerous factors can influence the cost of service line insurance coverage. So, it is best to check with the insurer or buy through Way.com for a quote on a home insurance policy with service line coverage.

How expensive is it to repair a service line break?

It costs between $3,000-$4,000 to repair a service line break. Repair work can be expensive based on the service line break type and severity. So, the average repair amount can vary based on the type of service line that has an issue.

What if my insurer doesn’t offer service line coverage?

Suppose your insurance company does not provide coverage for service lines. Then you may be able to buy a ‘service plan’ from a local utility company. This plan may cover the cost of utility line repairs, and the fee gets regularly added to your monthly bill.

Service line coverage limits and deductibles

If you’re buying a service line, you must understand that it has both deductibles and limits. The deductible is the sum you pay out of your pocket for repairs. Limit is the maximum amount that your insurer will pay when you raise a claim.

Suppose you have $15,000 in service line coverage with a $1,000 deductible. The cost of repairing a damaged water line is $10,000. So this amount is lesser than the maximum coverage. So, if your insurer approves your claim, you should get reimbursement in full minus your deductible. You can expect a check for $9,000, with the remaining $1,000 you must pay!

Is service line coverage worth it?

On average, a single service line repair costs between $3,000-$4,000. So, if you have a utility line repair, service line insurance covers these costs, so you don’t have to pay from your wallet.

Summary

Service line coverage is crucial if there are often issues or breakages with your utility line. Buying a service line coverage can be relatively inexpensive, with annual premiums costing around $20-$30 for $10,000 of coverage. It’s unlikely that you’ll have to repair a line in a given year — the cost of having one repaired can be quite high. The bottom line is that you may pay a few dollars in premiums yearly and never use the coverage. However, if you do require coverage, you’ll be glad you have it. So we recommend buying coverage to avoid unwanted expenses from your wallet.

How to file a home insurance claim for a service line with Way.com

Only some insurers offer service line coverages. Also, it is not mandatory to have this coverage. But for this, you must have a valid home insurance policy. But how can you get a reliable and cheap homeowners insurance policy in your area? That’s where Way.com helps you!

You should use our app or website to get quotes from insurers providing service line coverage in your area. Then you must compare all the quotes and buy a policy with the most affordable premiums. Do you need assistance filing a claim? You can easily do this on our website. Also, our home insurance agents can help you. They will help you understand the most complex insurance terms, rules, discounts, and coverages. Also, they will guide you in filing a claim swiftly!