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What is Service Line Coverage? 

by Main Street America Insurance,

Service line coverage, also called utility line insurance or buried utility lines coverage, is an optional homeowners endorsement that protects the utility lines running to your home. The cost to repair a broken service line can be a lot higher than you’d expect, making service line coverage powerful protection to have.

What Does Service Line Insurance Cover?

Utility line insurance helps pay to repair or replace damaged water pipes and utility lines on your property as well as any associated costs, like excavation and landscaping. Your policy coverage will kick in to pay for any damages caused by:

  • Long-term use like corrosion, rust and other everyday wear and tear 
  • Damage caused by trees and tree roots, animals, severe weather and more 
  • Malfunction, both electrical and mechanical

It’s important to remember that not every incident or item is covered, like septic systems or wires running through or under a body of water. An independent insurance agent can help you determine your home’s risks and build the right coverage for you.

Which Utility Lines are Covered?

In most cases, your service line insurance will protect the following utility lines:

  • Water lines (incoming water lines)
  • Power lines
  • Gas and fuel lines
  • Underground power lines
  • Service lines (cable, internet and fiber optics)

Service Line Coverage Examples

Here’s a look at a few ways service line coverage could help protect you from costly out of pocket repairs:

Water Main Break

During a winter storm, your pipes freeze and as things warm up you notice a break in the water line leading to your home. While your city has crews responsible for repairing any public water lines, it’s up to you to repair the lines that lead directly to your home. That means, at minimum, paying a plumber to excavate your yard and repair or replace the line.

According to Home Advisor, the average cost of a main water line repair can be anywhere from $300 – $1500 depending on the extent of the damage. Add in landscaping fees to restore your lawn to its previous condition and you’re looking at a lofty bill. Fortunately, your service line coverage would kick in, helping save you money on much-needed repairs.

Damage to Underground Wires

Say you’re digging in your yard to plant a tree, but you forgot to call 811 and have your utility lines marked first. While digging, you hit a buried electrical line causing a power outage to your home. 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 utility line insurance coverage, you’d be on the hook to cover the cost of the full amount to ensure the repairs were done safely and property, and power was restored to your home.

Is Service Line Coverage Included in Homeowners Insurance?

Underground service line coverage is not included in a standard homeowners insurance policy, but it’s an easy endorsement to add. Just talk to your independent insurance agent about your home’s risk and they’ll guide you on adding the right coverage with the best limits to ensure you’re fully protected.

Keep in mind that because it’s an addition to your homeowners policy, it will increase your monthly premiums and your coverage will likely be subject to a deductible. If your homeowners insurance company doesn’t offer a utility line insurance endorsement, you may be able to add coverage through your utility service provider.

Do I Need Service Line Insurance?

Service line insurance is great coverage for any homeowner to have — after all, you never know when severe weather or even everyday wear and tear could lead to serious and costly damage to your property.

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. That’s a small price to pay to protect yourself and your home from unexpected service disruptions and thousands of dollars in out-of-pocket costs.

Talk to an independent agent today to learn more the about homeowners insurance coverage available to you.