Service Line Coverage For Homeowners Policies

by | Dec 30, 2016 | Homeowners Insurance, Service Line Coverage

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When an exterior underground service line fails, repairs can total in the thousands. Defined service line failure perils are excluded in most homeowner policies. So, when damage occurs, homeowners are surprised to find that they are responsible for extensive repair costs. Service Line Coverage offers an affordable solution. Service Line Coverage provides payment for damage resulting from a service line failure.

A service line failure is physical damage that results in a leak, break, tear, rupture, collapse or arcing of a covered service line caused by root invasion, rust and corrosion, wear and tear, freezing and frost upheaval, insects or animals, weight of vehicles and equipment as well as other causes.

Important property is Covered

Examples of covered Service Lines includes:

  • Water Service
  • Waste Disposal
  • Natural Gas
  • Propane
  • Steam
  • Geothermal
  • Electrical Power
  • Drainage
  • Compressed Air
  • Communications

Coverage is provided regardless of age of the covered service line.

Coverage includes:

  • Repair of damaged service line
  • Loss of Use
  • Excavation Costs
  • Damaged Outdoor Property
  • Expediting Expenses
  • Environmental, Safety and Efficiency Condition for necessary replacement at 150%

Why offer this coverage?

First and foremost, this is a significant coverage that responds to real risks. Coverage is affordable, costing pennies a day, compared with the potential for thousands of dollars in repairs or hundreds for extensive service contracts that offer limited coverage only on specified utility lines.

The Details

$10,000 Limit; $500 Deductible


Loss of Use

Excavation Costs

Damaged Outdoor Property

Expediting Expenses

Annual premium: $26

Excavating Yard for Sewer Repair - Service Line Coverage For Homeowners Policies

Real Life Examples

The homeowner discovered the electricity was out in the pool cabana and outdoor patio lighting was not working. The underground electrical wiring running between the house, outdoor patio and the pool cabana was found to be corroded. Part of the pool patio was damaged during the excavation and required repairs as well. Total covered loss: $3,800

The natural gas line to the house was damaged during excavation by a contractor. After contacting the gas company the insured learns that the repair costs were his responsibility. Total covered loss: $4,500

A large rock abuts an underground sewer line directly under the insured’s sidewalk prior to entering the home. Years of wear mar the pipe and cause leakage requiring excavation and replacement of the pipe. Total covered loss: $10,000

The underground water pipe from the street to the house exterior cracked as a result of freezing and subsequent thawing. Emergency repairs were performed due to the temperature. Final repairs were completed later. Total covered loss: $9,500

We’ll Keep You Steps Ahead

You can count on us to be protected for today’s risks and challenges. Depend on us to keep you up to date with contemporary coverage and services. For more information, contact your Frederick Mutual agent.

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