While utility companies maintain underground service lines that connect homes to essential utilities, the homeowner is typically responsible for the portion that runs across their property up to the point where it connects to the provider’s system, usually beneath the street.
If something goes wrong along the portion the homeowner is responsible for, the repair bill falls on them. The average cost to fix a broken sewer line, for example, ranges from $3,000 to $7,000 and is not covered by a standard homeowner’s policy. Fortunately, there’s an inexpensive rider called service line insurance.
Signs of service line failures
Homes can have many types of service lines, and there are different indications of failure:
Sewer lines and septic tank lines — Watch for warning signs like slow drains, gurgling toilets or that unmistakable sewage smell.
Water service lines — When they fail, you’ll notice problems like low water pressure, unusually high water bills or wet spots in your yard.
Gas lines — A smell of gas is an obvious sign of a line rupture or crack.
Electrical wiring and communication lines — Damage may show up as interrupted internet, cable or phone service.
Failures can happen for many reasons, including:
- Aging pipes may corrode or crack over time.
- Tree roots can grow into sewer or water lines.
- Shifting soil, freezing temperatures or the weight of vehicles and equipment can damage buried lines.
When a service line fails, repairs often require excavation. That can mean digging up part of a yard, driveway or walkway to reach the damaged section and may cost more than $7,000 if the line runs under a driveway or mature landscaping.
Service line coverage explained
Service line coverage is an optional endorsement, sometimes called a rider, that can be added to a homeowner’s insurance policy. It is designed to cover the cost of repairing or replacing damaged underground service lines on the homeowner’s property.
Depending on the policy, this coverage may pay for the line itself, excavation costs, debris removal and restoration of landscaping, sidewalks or driveways disturbed during repairs. Coverage limits often range from $10,000 to $20,000, although options vary by insurer.
Homeowners may not realize how affordable service line insurance can be. In many cases, adding this endorsement costs $100 a year or less, depending on the coverage limit and deductible chosen.
Choosing and adding coverage
Service line coverage can usually only be added at policy renewal, not midterm. Homeowners may want to review their policy before renewal and ask questions like how much coverage is available, which types of lines are included and whether landscape restoration is covered.
Older homes, properties with mature trees and homes located far from utility connections may face higher risk. Still, even newer homes can benefit from the added protection.
The takeaway
Service line failures are not everyday events, but when they occur, the financial impact can be significant. For many homeowners, service line coverage offers a relatively inexpensive way to protect against unexpected, disruptive expenses.