Do You Own Your Property? Or Could It Own You?

Underground Service Line Coverage

Did you know homeowners are responsible for the maintenance of service lines (sewer, water and hydro) and repairs when the lines fail? Homeowners must pay out-of-pocket for outdoor property such as trees, shrubs and driveways damaged as a result.

Insurers now offering Underground Service Line Coverage fill a coverage gap for homeowners, who often do not realize that they own the outdoor service lines from the street to their house, and behind their house to a well, septic tank, or an outbuilding.

This coverage pays to repair or replace homeowner-owned, exterior underground water and sewer piping that is accidentally broken, leaks, breaks, tears, ruptures, collapses, or for arcing of wiring.   Extensions to the Underground Service Line Endorsement coverage include:

Loss of use - expenses for hotels, meals, rent, or other living expenses when a family must leave their residence because of a covered loss

Expedited Expenses - reasonable extra expenses to make temporary repairs and expedite permanent repairs or replacements

Excavation Costs - necessary and reasonable excavation costs required to repair or replace the damaged underground service line

Environmental & Safety Improvements - If an underground service line requires replacement due to a failure, the insurer will pay an additional cost to replace with materials that are better for the environment, safer or more efficient than the materials being replaced

Outdoor Property Extension - the insurer will pay to replace your outdoor property that is damaged due to a service line failure. This includes, but is not limited to, shrubs, trees, lawn and driveways

Claim examples:

A tree on your property has root growth that has caused damage to the sewer line connecting your home to the public sewer system. Your entire front yard will need to be excavated to repair the damage.   Cost of Repairs: $5,000

A leak occurs in the ground loop piping that forms part of your Heat Pump or Geo-Thermal Heating System. Your yard will need to be excavated to pinpoint the location of the leak and then the leak will have to be repaired. You may incur Loss of Use costs if your dwelling is uninhabitable until repairs are completed. Cost of Repairs: $9,500

Your sewer line connecting your home to the public sewer system collapses. Your yard will need to be excavated to locate the collapsed sewer line and then the line will have to be repaired. You may incur Loss of Use costs if your dwelling is uninhabitable until the repairs are completed. Cost of Repairs: $5,000

Most policies provide coverage within the foundation of your home; service line coverage addresses the grey area from the property line to the foundation. Be sure to ask your insurance professional if this new, affordable, product is offered by your insurance provider!