Service line coverage financially protects underground utility lines on your property that service your home. This can include power lines and cables that bring electricity, phone, or internet service to your home, as well as pipes and drains that supply gas and water to your property.
A standard home insurance policy does not typically include service line coverage, but you can usually add it as an endorsement for an additional cost. You may also have the option to purchase service line protection directly from the utility provider.
Why do homeowners need service line coverage?
Your city or designated utility company may be responsible for utility lines on public property, but you’re responsible for the cost of repairing or replacing damaged utility lines on your property.
However, a basic homeowners insurance policy doesn't typically cover those issues, and the cost of repairing underground utility lines can be staggering. A service line coverage endorsement can help cover repair costs, such as materials and labor, excavation work, and landscaping.
What does service line insurance cover?
Depending on the specifics of your policy, a service line endorsement may help pay for repairs if a covered line is damaged by:
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Blockage, bursting, or collapse
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Insects or rodents
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Growing tree roots
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Rust and corrosion
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Freezing
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Excavations
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Leaks
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Wear and tear
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Mechanical or electrical breakdown
A service line endorsement usually caps coverage at $10,000 and typically comes with a deductible, such as $500 or $1,000. Review your coverage terms closely, and ask questions to ensure you understand what lines and damage types are included.
What isn’t covered by service line insurance?
Most service line endorsements have some limitations. For example, your endorsement options probably won’t cover damage to:
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Service lines located above ground
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Wires or pipes that aren’t connected to your home
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Water wells
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Irrigation services
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Septic systems
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Liquid fuel tanks
Additionally, service line coverage doesn’t pay to move underground service lines above ground or to make purely aesthetic improvements to your property.
Also note that while a service line endorsement may cover damage caused by a blockage or collapse, the water damage that event might cause inside your house usually isn’t covered. Further, a standard home insurance policy usually won’t cover that damage unless you have a water backup and sump overflow endorsement.
How much does service line coverage cost?
When added to a home insurance policy, service line coverage usually costs less than $5 per month for approximately $10,000 in coverage with a $500 deductible. However, costs vary based on the insurer and coverage amount.
The annual cost of service line coverage is significantly less than you’d pay to repair or replace damaged underground utility lines on your property, often making it a worthwhile investment.
How to add service line coverage to your home insurance policy
You can add service line coverage to your existing home insurance policy by contacting your agent or insurance company to determine if the coverage is available. If it is, you can usually add the endorsement to your policy while it’s active or when you renew it. Once the coverage is added, the cost will be reflected in your premium payment.
What if your insurer doesn't offer service line coverage?
If your current homeowners insurance company doesn't offer service line coverage, you may need to ask your utility service provider about protection plans and warranties. Many utility companies offer these options for an additional fee, usually added to your monthly bill.
Another option is a home warranty. Some warranty companies include service lines in their plans, and a few specialize in them.
Service line coverage FAQs
What's considered a service line?
Utility service lines are the wires, drains, and pipes that bring utilities into — or, in the case of wastewater services, out of — your home. Some examples of service lines include sewer lines, television, phone, and internet cables, drainage pipes, fuel lines, and water pipes.
Why are septic and water wells not covered by service line coverage?
Service line coverage protects utility lines that run under your property and connect to a government-run or commercial utility. Septic systems and water wells are generally self-contained on a property, so the coverage doesn’t apply.
Do service line coverage plans have a deductible?
Service line plans often have a deductible, sometimes as low as $500. Check with your insurer to find out what deductible amounts are available.
How do you file a claim under service line coverage?
Filing a claim under a service line endorsement is similar to filing other home insurance claims. If the damage is covered by your policy, you can file a first notice of loss by phone or, if available, on your insurer's website or mobile app. This will trigger the claims process. After the claim is submitted, follow your claim specialist or adjuster's instructions.