Understanding Service Line Coverage
You may not realize that as a homeowner, you are responsible for the repair or replacement of damaged service lines on your property. Damage to service lines, such as underground wiring and piping, are not always covered under a standard homeowners policy. The average cost of a service line repair is about $3,000-$4,000, but of course can be much higher.
More recently insurance companies have been offering a newer coverage to help pay for issues that arise from service lines. Service Line Coverage can be added to your standard homeowners insurance. Depending on the amount of coverage you choose (usually between $10,000-$25,000), service line coverage typically adds about $20-$50 to your annual homeowners insurance premium. The typical deductible is $500.
What will Service Lines Coverage reimburse you for?
- Repairs to the service lines
- Excavation costs
- Loss of use if you cannot live in your home while work is being completed
- Landscaping expenses
Service Line Coverage typically protects you when the service line is damaged by:
- Wear, tear or rust
- Mechanical breakdown
- Weight of vehicles or equipment
- Rupture or breakage
- Freezing
- Animals
- Tree root or other plant invasion
Claims example:
The most common service line loss involves sewer lines, followed by losses to water lines. A tree root grew through a sewer pipe causing it to leak. Luckily our client had Service Line Coverage. Let's take a look at their breakdown:
| Hiring an excavator: |
$4,050 |
| Replacing the sewer line: |
$1,750 |
| Lawn repair: |
$700 |
| Total Costs: |
$6,500 |
| Deductible: |
$500 |
| TOTAL INSURANCE PAYOUT: |
$6,000 |
The insured paid $40 for Service Line Coverage for 3 years = $120 investment.
Conclusion: With Service Line Coverage, the insured paid their deductible + the money they put into paying for the coverage the last 3 years ($500 + $120 = $620). If they would not have added in Service Line Coverage, they would have paid $6,500 out of their pocket. They saved $5,880 by adding in this coverage!
It is always smart to ask your insurance agent about optional coverages that are available to you. Service Line Coverage is a perfect example of a small investment throughout the year that could end up saving you money if a claim were to occur.
If you are interested in learning more about Service Line Coverage or about the services TROXELL provides to protect you, please contact me or your TROXELL representative today!
Alysse Hewell
ALYSSE IS THE CHIEF EXPERIENCE OFFICER AT TROXELL. OUTSIDE OF WORK, ALYSSE ENJOYS SPENDING TIME WITH FRIENDS AND FAMILY, TRAVELING, AND COOKING. CONTACT ALYSSE AT 217-321-3222 OR AHEWELL@TROXELLINS.COM.
This information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local TROXELL insurance agent for coverage advice and policy service. Neither TROXELL nor its affiliates or representatives offer legal advice. Consult with your attorney about your specific situation.