What is Service Line Coverage On Homeowners Insurance?
Service line coverage is a relatively new addition to homeowners insurance which many policyholders may be unaware of. In this post, we’ll cover the often overlooked benefits of this protection. Feel free to contact us, and we’ll be happy to help you with your service line coverage today.
So, What is Service Line Coverage?
Service line coverage is an add-on to your homeowners insurance coverage that helps pay for damage to underground pipes and service lines connecting your home to municipal or utility systems. These lines may include water pipes, sewer pipes, electrical power lines, fiber optics, natural gas pipelines, and other connections which are essential for your home’s true functionality.
Why is Service Line Coverage Necessary?
Many homeowners may believe their local utilities or municipalities will be responsible for taking care of any repairs or issues which may come with these underground lines. However, this is not usually the case, as homeowners are usually responsible for the parts of the service lines which run through their property.
Damage to these lines may be extremely expensive to repair, and your standard homeowners insurance policy may not cover them unless optional endorsements are added. Understanding the difference between a home warranty and homeowners insurance can also help clarify why service line coverage is offered separately. Knowing what a homeowners policy covers shows where service line protection fits.
If you’re reviewing your overall protection, it’s also worth understanding how to lower your homeowners insurance premium without removing valuable endorsements that help protect against unexpected losses.
Common Causes of Damage to Service Lines
There are many reasons service line damage can occur and having coverage is important for financial protection. Some common causes include:
- Age & Corrosion: Pipes and service lines can age and corrode over time leading to leaks or breaks
- Root Intrusion: Tree roots can invade pipes and cause blockages or damage
- Accidental Breaks During Digging: When doing home improvement projects involving digging, underground lines can be accidentally damaged
- Ground Shifting or Freezing: Natural shifts in the ground or freeze-thaw cycles can cause pipes to bend, break, or burst
What is Service Line Protection?
How does it work? Service line coverage is added to your current policy premium to cover repairs or replacement of damaged service lines. The coverage will typically include:
- Diagnosis: The initial diagnosis will require professionals to determine the problem and the location of the damage
- Excavation: Costs associated with digging up the damaged line could be significant, especially if the damaged line happens to be underneath concrete or landscaping
- Repair & Replacement: Costs to repair or replace the damaged line could be expensive as well
- Restoration: Costs associated with restoration of your yard, driveway, or sidewalk after the repair has been completed could add up as well
Limits & Deductibles
Service line coverage will often come with specific limits and deductibles. These limits and deductibles may vary from policy to policy, yet they generally include a maximum coverage amount per incident.
The deductible is the amount you have to pay out of pocket before your coverage begins to kick in. When you select the right limits and deductibles, you can ensure you’re adequately protected without paying for coverage that does not match your needs. If you’re unsure whether your limits and deductibles are right for your home, request a homeowners insurance policy review and we’ll help you determine whether your current coverage meets your needs.
Additional service line coverage benefits
Some of the service line coverage policies provide the following additional benefits:
- Temporary Relocation Expenses: If the damage to the service line is so great that you have to leave your home for a while, the service line coverage may help pay for your living expenses while the repairs are being made.
- Expediting Expenses: If you need to expedite the repair process, the insurance company may pay additional costs to speed up the completion of repairs.
What Doesn’t Service Line Coverage Cover?
While service line coverage can be quite extensive, it does not replace sewer backup coverage, which protects against different water-related losses inside the home. Here are some common exclusions to keep in mind:
- Wear & Tear: Standard wear and tear is considered a maintenance issue, which may not be covered
- Known Pre-Existing Damage: Damage that occurred prior to the policy being in force is unlikely to be covered. Flood-related losses may also require separate flood insurance coverage.
- Cosmetic Damage: Your service lines may still work but may have cosmetic damage. This would typically lead to a denial of coverage since the functionality is still present. While reviewing exclusions, it’s also worth understanding whether homeowners insurance covers fire damage and other common property claims.
Choose Portsmouth Atlantic Insurance for Your Service Line Coverage Needs
Service line coverage can be a valuable addition to your homeowners insurance policy, helping protect you from unexpected repair costs. If you’re also comparing policies, it’s helpful to understand average homeowners insurance costs in New Hampshire before making coverage decisions.
Now that you understand how service line coverage works, you can better determine whether it’s right for your home. Working with an independent insurance agency can also help you compare coverage options from multiple insurance carriers.
Service Line Coverage for New Hampshire Homeowners
New Hampshire winters are hard on buried lines. Frost heave and repeated freeze-thaw cycles shift the soil around water and sewer pipes, and many older homes still have their original lines running out to the street. The part of the line on your property is usually your responsibility, not the utility’s.
When you read a service line endorsement, check these details:
- On your premises. The damaged line usually has to be on your property and serve your home or a covered structure, such as a detached garage.
- Its own deductible. Many endorsements carry a separate per-occurrence deductible that applies only to service line claims.
- Accidental damage. Many endorsements cover a line you break while digging in the yard, and breakage caused by the weight of equipment, animals or people above it.
- Causes it lists. Covered causes often include root intrusion, freezing or frost heave, rodents, mechanical breakdown, collapse and artificially generated electrical current. The list varies by carrier, so read your own endorsement.
Service Line Damage: Real-World Examples
Here’s how service line damage tends to happen, and where the coverage can help.
A Water Line That Breaks After a Freeze
After a cold snap, the ground thaws and you notice a break in the water line running to your house. The town or water company takes care of the public main, but the line from the street to your home is usually yours. That means paying to find the break, dig up the yard, fix or replace the pipe, and put the lawn back together.
Hitting a Buried Electrical Line
You’re digging to plant a tree and hit a buried power line, knocking out your electricity. Repairs like this often have to be done by the utility or a licensed contractor, and the bill can add up fast once you add digging and restoring the yard. Always call 811 to have your lines marked before you dig.
What Service Line Endorsements Often Leave Out
Every endorsement is written a little differently. Some common limits to ask about:
- Septic systems
- Lines that run through or under a pond, lake or other body of water
- Damage that was already there before the coverage started
Myth: Service Line Coverage Only Covers Storm Damage
Not true. Depending on the policy, it can also respond to corrosion, rust, tree roots, freezing, animals and some mechanical breakdowns. Those are the kinds of problems a standard homeowners policy usually leaves out. Read your endorsement to see exactly which causes it lists. To check whether your current policy includes this protection, request a personalized quote to review your homeowners coverage options.
Sources
- Maryland Insurance Administration, Buried Utility Lines Coverage
- Colorado Division of Insurance, Toolkit for Homeowners and HOAs on Insurance
- The Hanover Insurance Group, The answers to all your questions about service line coverage
- Common Ground Alliance, Call 811
FAQs
What is service line coverage on homeowners insurance?
Service line coverage is an optional homeowners insurance endorsement that helps pay for repairing or replacing damaged underground utility lines on your property. This may include water pipes, sewer lines, electrical wiring, gas lines, or internet cables connecting your home to public utility systems.
Does homeowners insurance cover broken sewer lines?
No, standard homeowners insurance usually does not cover broken sewer lines caused by wear, corrosion, root intrusion, or underground failures. Service line coverage may help pay for repairs when the damaged sewer line falls within your property boundary and meets policy conditions.
Who is responsible for underground utility lines on my property?
In most cases, the homeowner is responsible for underground utility lines located on their property, even when those lines connect to public utility systems. Many homeowners assume the city or utility company covers repairs, but responsibility often shifts once the line enters private property.
Is service line coverage worth adding to homeowners insurance?
Yes, service line coverage can be worth adding if your home has aging underground utility lines or mature trees nearby. Repairs often involve excavation, diagnostics, and restoration work, which can become expensive quickly. The endorsement can help reduce unexpected out-of-pocket costs after covered damage.
What does service line coverage typically cover?
Service line coverage typically helps cover diagnostic testing, excavation, repair, replacement, and restoration costs related to damaged underground service lines. Coverage often applies to water, sewer, electrical, gas, and communication lines, though exact protections depend on your insurer and policy wording.
What does service line coverage not cover?
Service line coverage generally does not cover routine maintenance, normal wear and tear, pre-existing damage, or cosmetic issues that do not affect functionality. It also does not replace flood insurance or sewer backup coverage, since those protect against different types of water-related property losses.
Does service line coverage cover water line replacement?
Yes, service line coverage may help pay for water line replacement if the damage results from a covered cause such as root intrusion, accidental breakage, or ground shifting. Coverage typically applies only to underground water lines on your property, subject to policy limits and exclusions.
How much service line coverage do homeowners need?
The right amount depends on your property, the age of your utility lines, and local excavation costs. Homes with older plumbing, extensive landscaping, or difficult underground access may need higher limits. Reviewing your homeowners policy can help determine whether current protection is sufficient.
Does service line coverage pay to restore my lawn or driveway?
Often, yes. Many service line endorsements pay to restore lawns, driveways and walkways that have to be dug up to reach the damaged line, along with the excavation itself. How much restoration is included varies by policy, so check the endorsement before you need it.
Do newer homes need service line coverage?
Newer lines are less likely to fail from age, but soil movement, frost heave, tree roots, installation problems and accidental digging damage can affect a line of any age. The coverage can still make sense for a newer home, especially one with a long run of pipe or cable from the street.
Myth vs Fact
Myth: Utility companies always pay for damaged service lines
No, that is a common misconception. Utility companies are usually responsible only for infrastructure outside your property line. Once the service line enters your property, repair responsibility often becomes the homeowner’s. This misunderstanding is one reason many homeowners are caught off guard by repair bills.
Myth: Service line coverage is included in every homeowners insurance policy
No, service line coverage is usually an optional endorsement, not a standard part of homeowners insurance. Coverage must often be added separately depending on your insurer. Homeowners who assume it is automatically included may discover the gap only after experiencing a costly underground line failure.