Service Line Coverage Explained: Protecting Your Home from Hidden Utility Line Costs

Many homeowners think their property insurance covers everything from their front door to the street. Unfortunately, that’s not the case. The stretch of land between your home’s foundation and the public utility connection — known as the service line — is your responsibility. And unless you’ve purchased service line coverage, you could be facing a costly surprise.

Service lines include water, sewer, gas, and other utility pipes running across your property. If one breaks, collapses, or leaks, repairs can range from $15,000 to $25,000. Without service line coverage, those costs are yours to bear.

I’ve seen this play out many times. In Philadelphia, I visited a rowhome where the basement floor was torn up to reach a collapsed wastewater pipe. Initially, the insurance company denied the claim, believing the damage came from outside the home. Once we proved the collapse was inside the structure — and collapse is a covered peril — we got the $14,000 excavation covered. The only out-of-pocket expense for the homeowner was $387 for the replacement pipe itself.

In another case, a homeowner’s water line failed where it entered the house. Because they had service line coverage, the $16,000 repair was handled with just a $500 deductible. Without it, that repair would have been a devastating financial hit.

Service line coverage can be purchased from your insurance carrier or sometimes directly from your water company. If you go the water company route, make sure you compare coverage limits, deductibles, and what’s actually included. And beware of fly-by-night outfits offering “coverage” that won’t hold up when you need it.

At 21st Century Public Adjusters, we recommend every homeowner consider adding service line coverage. It’s an inexpensive endorsement that can save you tens of thousands of dollars — and a lot of headaches — when the unexpected happens.