Service Line Coverage is an insurance policy that covers damage to underground utility lines and pipes that run from the street to your home. These lines include water, sewer, gas, and electrical lines. Service Line Coverage protects homeowners from expensive repair costs that may arise from damage to these lines.
Why do you need coverage for underground utility lines?
Many homeowners assume that their standard homeowner’s insurance policy covers damage to underground utility lines. However, this is not the case. Standard homeowner’s insurance policies typically only cover damage to the home’s physical structure, not the utility lines beneath it.
If a utility line becomes damaged, repairing or replacing it can be incredibly costly. In some cases, the cost of repairs can run into thousands of dollars. In fact, According to Angi, these repairs must be done by your utility company and cost an average of $1500 to $5000 – even before factoring in any landscaping restoration. Without Service Line Coverage, homeowners have left to foot the bill for these repairs independently.
Some of the key reasons to consider this coverage include the following:
- Aging Infrastructure: As communities grow older, so do their utility systems. Over time, service lines can corrode, crack, or sustain damage from tree roots, leading to costly repairs.
- Environmental Factors: Weather-related events, such as freezing and thawing cycles or shifting soil, can cause service lines to break or collapse.
- Limited Municipal Responsibility: While the city or utility company may maintain the public portions of utility lines, homeowners are often responsible for service lines on their property.
What does Service Line Coverage include?
Service Line Coverage can vary depending on the policy and insurance provider. However, most policies will cover the cost of repairing or replacing damaged service lines. This can include costs associated with excavation, repair, and replacement of damaged lines.
In addition, some policies may also cover the cost of additional expenses that may arise from the damage. For example, suppose the damage to the service line results in losing water or electrical service to the home. In that case, the policy may cover the cost of temporary housing or relocation until service is restored. This can vary from policy to policy so you should consult with an insurance professional.
How much does Service Line Coverage cost?
The cost od this add-on can vary depending on several factors, including the location of your home, the age of your home, and the type of service lines that run to your home. However, the cost of this coverage is typically relatively low. Policy Genius estimates that adding underground service line coverage to a homeowners insurance policy costs around $30 to $40 per year on average, though it varies by state.
In conclusion, Service Line Coverage is an important insurance policy every homeowner should consider. It protects against costly repairs that may arise from damage to underground utility lines. If you want to add Service Line Coverage to your existing homeowner’s insurance policy, speak with your insurance provider to see if this option is available. It is always a good idea to review your policy carefully to ensure you understand what your insurance does and is not covered.
If you want more information about this coverage or want to purchase a policy, don’t hesitate to contact us at Greater Pittsburgh Insurance Consultants. We would be happy to answer any questions you may have and help you find the policy that is right for you.