Some insurers now offer an additional coverage under their homeowners policies for the utility or service lines that are buried underground outside of the home on the insured’s property. This includes underground pipes, including any underground connections, valves or equipment associated with such underground pipes; or, underground wires, including any underground connections or equipment associated with such underground wires, that provide a utility service such as water, sewage, drainage, electricity, gas, steam or communication services to or from the insured residence premises. Usually this coverage does not include pipes or wires within or under the insured house. This coverage is different than service line coverage offered as a warranty by companies other than insurance companies and may provide different protections.
This additional coverage may pay, up to the coverage limit, for physical loss or damage caused by a disruption. A “disruption” is generally defined as a leak, break, tear, rupture, collapse or electrical arcing. Usually coverage does not provide protection for blockages or low pressure problems if there is no physical damage from a covered cause of loss to the service/utility line.
This coverage may pay to repair or replace the service/utility line, including the cost of excavation, as well as additional living expenses, if your home is rendered uninhabitable by a covered loss. It may also pay for damage to outdoor property, including trees, shrubs, plants, lawn, walkways, and driveways, that is damaged as a result of a service line failure or is damaged during excavation.
Your insurer may limit the coverage, usually dependent upon the age of the covered service/utility line. Generally, the most that will be paid on a one-time failure to a covered line that is less than 50 years old is $10,000 and for lines 50 years or older is $2,500. The loss is also subject to any deductibles as stated in the homeowners policy.
If you think you are interested in securing this coverage, you should contact either your insurance company or your trusted insurance professional, such as an agent or broker, to learn if your insurer offers this coverage and to review the terms and exclusions, and the cost of this coverage. Availability and policy terms and cost for this coverage will vary by insurer.
For additional information on your homeowners insurance or any other type of insurance, please visit our website or call us at 1-800-492-6116.
