Service Line Coverage: What You Need to Know

Service Line Coverage

It is common for homeowners to forget that the water that flows through our homes and the wastewater that flows out spends time traveling through the area between the front of the house and the street. If those subterranean pipe systems happen to fail, the homeowner, not the utility, is financially responsible for the necessary repairs. However, unlike with leaks inside your home, your standard Homeowner’s Insurance policy does not cover the oftentimes expensive repairs to water lines, sewer lines, and landscaping.

While utility companies do offer a potential solution by selling service plans at a monthly rate, your current Homeowner’s Insurance policy may be updated to provide the necessary coverage to protect you and your property. Most policies do not automatically cover sewage and drain backups, which can cause expensive damage if water and sewage backs up into your house. It may cost just $50 to add about $10,000 in sewage backup coverage. However, that is only to cover the internal work, and does not cover water or sewer line repair outside of the home.

Merriam Insurance has a better solution. We recommend that you ask about adding a Service Line Rider to your Homeowner’s Insurance policy. Not only will it cover repairs to the water and sewer lines outside of your home, but unlike the service plan from your utility company, you will be able to use your own plumber for the repairs.

Merriam Insurance recommends you contact one of our experts today to learn more before you experience the stress involved with a sewer or water line failure. You’ll be glad you did.

James Dick, CPCU, AAI