What Is Service Line Coverage, and Is It Right for You?

You’re washing dishes on a quiet Sunday evening and suddenly the water slows to a trickle. Or maybe you’ve spotted a soggy patch in your yard growing by the day. Underground service line failures aren’t exactly dinner table conversation, but they’re hard to ignore when they happen. That’s where service line coverage comes in.

Service line coverage is extra home insurance protection that helps pay for repairs to water, sewer, gas, and electrical lines serving your home. Here, you’ll learn what it covers and whether this protection makes sense for you.

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Types of service lines covered

When you hear “service lines,” you might think only of water pipes. But your service lines are a whole network of pipes and wires that run from the street to your house, and they can include permanent connections, valves, and devices that link you to essential utilities.

Unfortunately, service line protection isn’t part of a standard homeowners policy — it’s optional coverage that helps with the cost of repairs when service lines fail.^[1]

Here’s a look at what it can cover:

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  Water service lines

  These lines connect your home to the municipal water supply. When they fail, you’ll notice problems like low water pressure, unusually high water bills, or wet spots in your yard.

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  Sewer and septic lines

  These lines carry wastewater out of your house to the city system or a septic tank. Watch for warning signs like slow drains, gurgling toilets, or that unmistakable sewage smell.

• 

  Gas lines

  These lines are critical for bringing natural gas or propane to appliances like your furnace and water heater. Issues can be dangerous and require immediate attention.

• 

  Electrical and communication lines

  These include your power, internet, cable, and phone lines — because nobody wants to lose their favorite show mid-binge.^[2]

Benefits of service line coverage

Beyond the obvious that it helps pay for repairs, service line insurance comes with a few significant advantages.

First, it offers financial protection. Repairing underground lines is expensive — and unpredictable. Potential repair costs for a water line are just over $1,000, while a sewer line repair bill can run $3,000 or more.^[3] When you factor in excavation, permits, and returning your yard to its original state, it gets pricey.

The convenience factor is also noteworthy. Instead of scrambling to find qualified contractors when a line breaks down, your insurance company can help coordinate repairs.

But the most valuable perk of a service line coverage endorsement might be peace of mind. Knowing your policy will cover you means you can focus on enjoying your home, not worrying about what might be happening beneath the surface.

Common exclusions and limitations

Like any insurance, service line policies come with limitations. Service line coverage doesn’t protect against any issues that existed before you added the coverage.

Most policies won’t include damage from natural disasters, such as earthquakes or floods — but each policy is different, so be sure to read yours carefully. And if problems come up from lack of maintenance, like tree roots invading pipes or corroded wiring, you’re likely on your own for those repairs, too.

You should also know that some systems fall outside this coverage, such as water well and sprinkler systems, heating and cooling systems, fuel tanks, septic systems, and any pipes or wiring that runs under pools or through your home’s foundation. And don’t forget, the lines must be actively connected and in use for the policy to cover them.

Cost factors in service line coverage

Service and utility line coverage is another fee on top of what you pay for a standard homeowners insurance policy. But it’s surprisingly affordable. Most homeowners pay an average of $30 to $50 per year, which is about the same price as a couple of car washes.

But that’s an average — the amount you pay for a service line plan depends on the choices you make about your policy, from the amount of coverage you get to the deductible you choose.

Higher policy limits give you more security but can also bump up your premiums. You can offset the cost by opting for a higher deductible since higher deductibles often mean cheaper insurance. Just keep in mind that you’ll end up forking over more cash if your lines need repair.

The scope of coverage is also something to think about. Service line policies often include more than repairing or replacing the damaged line. The protection you get typically covers excavation costs, street repairs, and returning your lawn to its original condition — because fixing a buried pipe usually involves digging up more than just the pipe.

How to choose the right service line coverage

Before shopping for a service line endorsement, take a good look at your property. How old are your service lines? What types do you have? This initial assessment is important because older homes with aging clay sewer pipes might need more coverage than a newer build with modern PVC lines.

Consider your location, too. Areas with mature trees can have roots that wreak havoc on underground service lines, leading to costly repairs. If your house sits further back from the street, that’s more length to protect than a home that sits near its utility connections.

Make sure to compare more than the premium price when choosing coverage. Consider specific scenarios like:

• What’s the coverage limit, and will it be enough to handle major repairs?

• Does it include landscape restoration, or will you be left paying to fix your torn-up yard?

• How does the claims process work?

• Does the policy cover accidental service line damage you might cause while digging in your yard?

Some insurance companies even offer green upgrades by paying extra if you want to replace old lines with more environmentally friendly materials.

Read through the policy terms carefully, and pay attention to how the company handles things like gradual wear and tear versus sudden breaks.

Finally, don’t hesitate to ask questions. A good insurance agent should be happy to walk you through exactly what their coverage includes, its exclusions, and potential out-of-pocket costs.

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How to file a claim for service line coverage

Nobody wants to deal with a failed service line, but if it happens, you need to know what to do. Safety comes first — if you smell gas or suspect a gas leak, leave the area and call your utility company from a safe distance. For broken water lines, turn off the main water supply valve to your home to avoid flooding your yard and house.

Once you’ve secured your property, here’s what to do to get your claim moving:

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  1. Contact your insurance company

  Tell your insurer which line you think has damage, when you first noticed the problem, and whether you’ve made any emergency repairs.

• 

  2. Document everything

  Take photos of visible damage or problem signs, write down a timeline of events, gather your maintenance records, and save notes from all conversations with utility companies.^[4]

• 

  3. Get repair estimates

  Your insurer will likely send an adjuster to check the damage. They may suggest contractors or ask you to collect repair estimates.

• 

  4. Track your claim

  Insurance companies typically start processing claims within 24 to 48 hours. How long it takes depends on the damage — complex repairs might take longer to assess, but your adjuster should keep you updated on timing.

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