Service Line Coverage for Your Home

June 13, 2018

Many homeowners are unaware they have a responsibility to repair or replace any service lines on their property when damage occurs. Damage to lines that provide water, power and communications services can be very costly to repair. In fact, service line failure costs an average of $6,000 per occurrence.

What Is Service Line Coverage?

Service Line Coverage is a type of insurance that protects homeowners in the event that pipes or wiring on their properties are damaged. It can help cover the costs of repairing damaged service lines and pipes you are legally responsible for. Service Line Coverage fills a coverage gap for homeowners since service line failure is typically not covered by most homeowners insurance policies.

What is Considered a Service Line Failure?

A service line failure may be caused (but is not limited to) the following perils:

  • Wear and tear
  • Deterioration or hidden decay
  • Rust or other corrosion
  • Tree or root invasion
  • Freezing or frost heave
  • Vermin, insects, rodents or other animals
  • Electrical or mechanical breakdown
  • Pressure system breakdown

What Does Service Line Protection Cover?

Service Line Protection generally offers coverage for:

  • Damage to your underground service line that is the result of a service line failure
  • Cost to repair or replace damage to service lines resulted from service line failures
  • Expediting expenses to make temporary repairs or permanent replacements to your service line that is damaged as the result of a service line failure
  • Costs of excavation
  • Loss of use or additional living expenses (in case you are unable to remain in your home until repairs are complete)
  • Outdoor property repairs (damage to outside property including trees, shrubs, sidewalks, decks and landscaping)

It is important to note that most service line protection plans have specific coverage exclusions. Some common exclusions include:

  • Relocation of existing wiring or pipes
  • Septic systems and leach fields
  • Replacement of water wells, motors, or pumps
  • Damage from service lines that are being dismantled, serviced or installed
  • Wiring or piping that runs through a building or a body of water
  • Cleanup or removal of pollutants, hazardous waste or sewage

What type of Service Lines are Covered?

This can vary based on this specific coverage plan you choose. Generally, you may have coverage for the following types of service lines:

  • Sewer pipe
  • Water pipes
  • Electrical wiring
  • Internet lines
  • Power lines
  • Natural gas or propane pipes
  • Communication or data-transmission wiring

Common Case Examples

Case examples provided by Farmers of Salem

Let’s look at some examples of how service line coverage may help you save money.

Case #1: Perhaps one day you are informed that a tree root grew through a sewer pipe located in your backyard causing it to leak. The sewer pipe was 200 feet long and required a backhoe to dig up the damaged piping and replace it. You may have to pay around $5,800 in property damage. Service line coverage can help soften that blow.

Case #2: Perhaps an underground power line providing service to your home significantly deteriorated over time resulting in arcing. The power line had to be excavated and replaced due to extensive damage discovered during the repair work. You may have to pay around $7,800 in property damage. In addition, you may not be able to remain in your home while the power line is being replaced. Service line coverage can help soften the blow and also help provide you with loss of use or additional living expenses.

Call us at (415)-386-2283 or contact us online today to learn more and discuss your coverage options!