Homeowners do not give much thought to the wires and pipes that deliver power and water to their homes. They also often do not know that they are financially responsible for the cost to have damaged service lines repaired or replaced. Service line coverage is insurance against these unexpected expenses. It offers protection to fill the gap in standard homeowners insurance policies that typically do not cover service lines.
Service Line Coverage FAQs
What does service line cover?
Service line coverage provides protection against a leak, break, tear, rupture, collapse or arcing of a covered service line caused by:
- Collapse, but not including sinkhole or subsidence collapse
- Electrical and mechanical or pressure systems breakdown
- Rust or other corrosion, decay, deterioration, hidden or latent defect
- Wear and tear
What are some examples of covered property?
Examples of covered property include:
- Ground loop piping that connects to a heat pump
- Power line that provides electrical service to the insured premise or related private structures
- Water piping that connects from the residence to a public water supply system or private well system.
Is there a waiting period for coverage?
Yes, there is a 30-day waiting period from the inception date of the coverage.
What is the criteria for service line coverage?
The covered service line occurrence must:
- Be located at the insured location
- Be located underground
- Be owned by the insured or the insured must be legally liable for its repair or replacement
- Provide a service to the dwelling as defined in the endorsement
What is the deductible?
$500 per occurrence.
What is the limit for this coverage?
There is a $10,000 per occurrence limit with $500 sublimits for Outdoor Property (trees, shrubs, plants, lawns, driveways and walkways), Expediting Expense and Loss of Use (if provided in the underlying form).
Are excavation costs covered?
Yes. Excavation costs are covered.
Would a blockage in the service line be covered?
Blockage or low pressure of a service line is not covered as there is no direct damage.
What perils are not covered under the service line endorsement?
Fire, lightning, explosion, windstorm or hail, weight of snow, ice or sleet, falling objects, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sinkhole collapse, volcanic action, water, water damage, earth movement and flood.
What if an insured damages their service line while digging on their property?
Impact from digging is not a named peril. However, this endorsement extends coverage for collapse as a result of the weight of equipment that could be used in the course of digging.
What are some examples of excluded property?
- Fuel tanks
- Piping or wiring that is not underground
- Piping or wiring that runs under or through the dwelling, swimming pool, lake or stream
- Piping or wiring that delivers water or electricity to outdoor property
- Piping or wiring not connected or ready for use
- Underground storm drains
- Water wells
What if tree roots damage the sewer line and the ordinance/law requires the insured to remove the tree?
Outdoor property, including trees, shrubs, plants, lawns, walkways and driveways, that is damaged as a result of a service line failure or damaged during the excavation of the service line would be covered within the $10,000 per occurrence limit.
Is there coverage if the foundation of a home shifts and damages the service line?
Coverage would not apply in the case of settling or shifting foundations as it would not meet the criteria for covered causes of loss listed in the endorsement.
Does coverage apply for off-premise explosions that damage an insured’s service line?
Coverage would not apply in the case of off-premise explosions as it would not meet the criteria for covered causes of loss listed in the endorsement.
Is coverage provided for a natural gas line that is owned by the insured and providing service to the home?
Coverage would be provided as long as the natural gas line meets all of the following criteria:
- Experiences a service line occurrence
- On the insured location
- Provides a service to the dwelling
- The service line is underground