Service line coverage is a relatively new addition to homeowners insurance which many policyholders may be unaware of. In this post, we’ll be going over the often overlooked elements and benefits of this added layer of coverage for your homeowners insurance policy. 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 insurance policy add-on which will cover the cost associated with damage to underground pipes and service lines which connect to your home via external municipal and utility service lines. 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 typical homeowners insurance policy will likely not cover these repairs unless a specific line for coverage is added to your policy.
Common Causes of Service Line Damage
Service line damage can occur for a variety of reasons, making coverage important for financial protection. Common causes may include:
- Age & Corrosion: Over time, pipes and service lines may deteriorate and weaken, leading to leaks or breaks
- Root Intrusion: Tree roots can grow into pipes, causing blockages or damage
- Accidental Breaks during Digging: Home improvement projects involving digging can accidentally damage underground lines
- Ground Shifting or Freezing: Natural shifts in the ground or freeze-thaw cycles can cause pipes to bend, break, or burst
How Does Service Line Coverage Work?
Service line coverage works through adding on to your existing policy’s premium to cover repairs or replacements 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 having to pay more than necessary for coverage.
Additional Benefits of Service Line Coverage
Some service line coverage policies offer additional benefits, such as:
- Temporary Relocation Costs: If the service line damage is severe enough to cause you to have to leave your home for a certain period of time, the service line coverage may cover living expenses while repairs are being made
- Expediting Expenses: If you need to accelerate the repair process, some policies may cover the additional costs required to expedite completion of the repairs
What Does Service Line Coverage Not Cover?
While service line coverage can be comprehensive, there are typical exclusions to be aware of, such as:
- Wear & Tear: Standard wear and tear is considered a maintenance issue, which may not be covered
- Known Pre-Existing Damage: If there was damage present before the policy began, it’s unlikely to be covered
- Cosmetic Damage: The function of your service lines may not be impaired, but could have cosmetic damage, leading to a denial of coverage; as the functionality is still present
Choose Portsmouth Atlantic Insurance for Your Service Line Coverage Needs
Service line coverage can be a valuable addition to your homeowners insurance policy which can save you from unanticipated financial burdens due to damage to your underground service lines on your property. Now that you’ve learned more about what service line coverage is, how it works, and its exclusions; you can now better assess whether this level of additional coverage is necessary. Contact us at Portsmouth Atlantic Insurance to discuss the specifics of adding service line coverage to your existing policy, ensuring you’re fully protected in all aspects of home ownership. We look forward to hearing from you soon!