If you wake up one day to discover that there is no running water in your house due to a tree root causing damage to the water line on your property, you could be facing a hefty repair bill. To protect yourself from such unexpected expenses, consider adding service line coverage to your homeowners insurance policy.
Service line coverage is an optional insurance that can help cover the cost of repairing underground utility lines on your property. This type of coverage may include damage caused by root invasion, mechanical or electrical failure, blockage, bursting, collapse, or even damage from rodents or other animals.
Typically, service line coverage comes with a deductible, which is the amount you would need to pay out of pocket before your insurance kicks in. For example, if a sewer line on your property gets crushed by a heavy truck, costing $3,000 to repair, and you have a $500 deductible, your insurance would cover the remaining $2,500.
This coverage can also extend to services like excavation, replacing damaged piping, restoring landscaping, and even covering the cost of temporary accommodation if your home becomes uninhabitable. Some insurers may even offer additional coverage to upgrade your old service line to more efficient or environmentally friendly technology.
However, it’s important to note that service line coverage typically does not include repairs for utility lines above ground or damage to water wells, septic systems, or liquid fuel tanks. Exclusions can vary between insurance companies, so it’s essential to review your policy carefully and consult with your agent if you have any questions.
The cost of service line coverage can vary depending on your location and the level of coverage you choose. On average, it can range from $20 to $50 per year, with some companies offering rates as low as $9 per year for newer homes.
Ultimately, whether service line coverage is worth it for you depends on various factors. If you live in an older home with aging utility lines or have large trees with roots that could potentially damage underground pipes, investing in this coverage could provide peace of mind. On the other hand, if you live in a rural area without many municipal utilities or feel comfortable covering unexpected expenses, you may not find this coverage as beneficial.
In addition to purchasing service line coverage from your home insurer, you may also explore options from utility companies or home warranty companies like Service Line Warranties of America and HomeServe. However, it’s crucial to compare the terms and costs of each plan to ensure you are getting the best value for your money.
Many home insurers offer service line coverage as an add-on, so be sure to check with your provider to see if this option is available to you. By taking proactive steps to protect your property from unexpected utility line damages, you can have peace of mind knowing that you are prepared for any unforeseen circumstances.