Do I Need Service Line Coverage for My Home?

If you want coverage for repairs on your property's major service lines and landscaping restoration after contractors complete their work, you’ll likely want service line coverage. Service line coverage isn’t included in most homeowners policies, but buying it as a policy add-on is often a cheaper alternative with broader coverage to service plans offered by utility companies.

Keep reading to learn more about what service line coverage does and doesn’t cover, how it compares to utility plans and what costs you can expect.

On This Page

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  What Is Service Line Coverage?

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  How Does Service Line Coverage Work?

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  Service Line Endorsement vs. Utility Plans

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  What Does Service Line Coverage Protect You From?

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  How Much Does Service Line Coverage Cost?

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  How To Get Service Line Coverage for Your Home

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  FAQs

What Is Service Line Coverage?

Service line coverage protects service lines, such as wires and pipes for electricity and sewage, when damaged under a covered loss. Examples of covered claims include mechanical breakdown, leaks and damages caused by a tree root.

Standard home insurance policy covers sudden or unexpected damage to wires and pipes within your home, such as a burst pipe. However, homeowners policies typically don't cover repairs for the underground utility lines for your home. Service line coverage is an optional insurance add-on that widens the scope of your coverage to include your service lines.

What Are Service Lines?

Service lines are underground networks of pipes, cables, wires and internet lines that provide utility services and help make homes habitable. Homeowners are financially responsible for any underground utility lines running through their property. Here are several utilities that service lines provide to customers:

• Electricity
• Fiber optics
• Gas
• Cable
• Internet
• Sewage
• Steam
• Telephone
• Water

How Does Service Line Coverage Work?

Rather than paying entirely out-of-pocket when your underground service lines need repair or replacement due to degradation, damage or breakdown, service line coverage endorsements help cover major utility lines beneath your home and property after paying your deductible. This add-on coverage includes payments to excavate, fix, and replace these lines and landscaping restoration after contractors complete repairs.

Service line coverage typically covers the following service lines:

• Cable lines
• Drain pipes
• Fiber optics
• Internet lines
• Natural gas pipes
• Power lines
• Sprinkler pipes
• Steam pipes
• Sewer pipes
• Water pipes

In addition, if you are unable to live in your home while the service lines are being repaired or replaced, service line insurance can pay toward your temporary housing costs.

Service Line Endorsement vs. Utility Plans

Service line coverage endorsements differ from the service plans sold by local utility and cable companies. Utility service plans are sold for an extra fee added to your monthly bill and only cover repairs for the company's lines. Service line coverage that is added to your homeowners insurance policy will cover major utility lines beneath your home and property regardless of the utility company associated with them.

For instance, a cable service plan would only cover repairs for underground cable lines; however, it wouldn't pay to repair electrical wires or water mains. Adding a service line endorsement to your homeowners insurance can provide broader coverage at usually a better value.

What Does Service Line Coverage Protect You From?

Service line coverage will cover the costs if a covered event damages an underground line and needs repairs. For example, here are several situations where damage to your sewer lines will likely be covered:

• Mechanical breakdown
• Vermin, insects or rodent damage
• Freezing
• Weight of equipment, vehicles, animals or people
• Collapse
• Rust, corrosion, decay and deterioration
• Tree or root-caused damage
• Wear and tear

What Isn’t Covered?

Service line coverage varies by provider and typically excludes the following systems from coverage:

• Water well damage
• HVAC systems
• Fuel tanks
• Sump pump
• Lines that run under your home but aren't connected to your septic system

How Much Does Service Line Coverage Cost?

Service line coverage typically costs an additional $20 to $50 annual premium on top of a standard homeowners insurance policy. Home insurers typically offer service line insurance with a coverage limit between $10,000 and $25,000 with a $500 deductible.^[1] Higher coverage amounts may be available depending on the home insurance provider.

Although you'll pay an additional premium, service line coverage can be more cost-effective than paying for repairs out of pocket. For example, the average payout, according to Mercury Insurance, is $5,000 for a service line claim.[2] Without service line coverage, you may be stuck with the following out-of-pocket expenses:

How To Get Service Line Coverage for Your Home

You’ll want to check with your current homeowners insurance company to see if they offer service line coverage endorsements to add to your existing policy. If you’d prefer to seek other options or don’t already have a homeowners policy, you’ll likely want to shop around. Check with three to five different insurance companies to see their rates and check their costs for service line coverage to find the best option for your budget and coverage goals.

This process can become tedious, as you’ll need to contact each homeowners insurance company separately and provide them with the same information, including your personal information, like age and marital status and specifications on your home, such as square footage and location. Working with an insurance marketplace like SmartFinancial can speed up the process, getting you a cost-free quote for a plan that suits your needs after answering a few questions. Get started on your free homeowners insurance quote today.