Do I need Water Line Insurance Coverage?

water line

Recently, we have had many customers calling to find out if they need to buy the additional water line coverage offered by their water companies or another third party. Most of our customers believe there is coverage on their homeowners insurance for their service lines, so why should they purchase this coverage elsewhere and waste their money.  The simple answer is, any lines, including water and sewer, from you house to the street are typically not covered under your home insurance policy.

This does not mean, however that you need to purchase coverage from an unknown third party.   Many homeowners insurance companies recently introduced an additional coverage called “Service Line Coverage” and it has more bang for your buck than any third party coverage you can purchase for as little as $48 per year.  You see, this valuable endorsement typically covers:

 Examples of Covered services:

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

What is considered a service line failure?

  • Wear and tear, marring, deterioration or hidden decay
  • Rust or other corrosion
  • Mechanical breakdown, latent defect or inherent vice
  • Weight of vehicles, equipment, animals or people
  • Vermin, insects, rodents or other animals
  • Artificially generated electrical current
  • Freezing or frost heave
  • External force from a shovel, backhoe, or other excavation form
  • Tree or other root invasion

Coverage includes:  

  • Loss of use resulting in additional living expenses
  • Excavation costs necessary to repair or replace the damaged covered service line
  • Expediting expense for temporary repairs and permanent replacements
  • Damage to outdoor property such as trees, shrubs, plants, lawns, walkways or driveway that is damaged as a result of a covered service line failure

While any typical third party water line coverage on offers coverage on your water lines and could cost over $200 per year and typically won’t cover the excavation costs which could amount to tens of thousands of dollars.

Real-Life Examples

Look at these real-life claim examples to see how the cost of a breakdown adds up:

  • 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

  • Salt water from a saline pool deteriorated the connection to the main water line. The connection had to be replaced.

                    Total covered loss: $1,250

  • A tow truck lost control and ended up in the front yard of the insured. The weight of the vehicle broke piping to the sprinkler system.

                    Total covered loss: $2,850 

  • A large tree fell in the insured’s yard. The root structure was pulled from the ground damaging the buried line and connection to the propane tank from the house.

                    Total covered loss: $1,945 

  • An old sewer pipe running under a driveway deteriorates and starts leaking. Repair of the pipe means the driveway needs to be dug up. The total cost of replacing the remaining pipe is $15,000. The cost to replace the damaged segment of sewer piping is $3,500. The cost to excavate and to repair the driveway is $4,000.

                    Total covered loss: $7,500 


Contact your agent to find out if your homeowners insurance company offers service line coverage and if not, feel free to contact us to get a quote with a company that does.

Contact us for more information about service line coverage

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