What’s UP With Water (or Service) Line Insurance?

As a homeowner, you’re responsible for the pipes that connect your water and sewer lines to the main public water delivery system in your area. If those pipes corrode, leak or fail due to age or wear and tear, your home insurance likely will not cover repairs/replacement. If the damage is caused by something sudden and accidental, that’s a different story. But these days, many home insurance policies limit or cap coverage for water damage, especially if it’s due to “gradual or continuous seepage or leakage.”

There’s an insurance product you can buy to fill that protection gap. It may be advertised as “Water Service Line” or “Water Line” or “Service Line” insurance. As with all insurance products, you need to ask questions, run scenarios by a sales representative and do your best to understand what will be covered and what is excluded before you buy it. Generally, the policies are affordable, (3-5 dollars per month) have a 30-day waiting period before coverage kicks in, and no deductible applies if you make a claim. But the wording in the product matters.

If you own an older home, or if there are trees in the vicinity of where your water and sewer lines are located whose roots could cause expensive damage, this type of insurance may be a wise purchase. The newer your home, the less likely you need it.

If your water bill comes with a solicitation to buy Water Service Line protection, understand that the solicitation is probably only an ad that doesn’t spell out the actual policy terms. If you complete an “Acceptance” form and give them your credit card information, you’ve bought the product and won’t get the actual policy contract for 10 days or more. Also, many of these products will auto-renew unless you call to cancel when the policy term ends (usually one year).

Here are some questions to get answers to before you buy Water Service Line insurance:

• Can I just add a water/sewer line endorsement to my home insurance policy instead of buying a separate policy through a different company? What will that cost?
• Does the policy cover water and sewer lines or just one or the other? 
• If a tree root damages the line, will that be covered and if so, up to what amount?
• Does the insurance company send out their own repair professionals or can I pick one and have their fee covered by the insurance?
• Do I need to pay the repair company and get reimbursed by the insurer or does the insurer pay the repair pro directly?
• If my water and/or sewer line gets damaged due to age, wear and tear, will this policy cover the repairs?
• Will this policy cover repairs if my sewer or drain backs up and causes damage?

 

The information presented in this publication is for general informational purposes, and is not a substitute for legal advice.  If you have a specific legal issue or problem, United Policyholders recommends that you consult with an attorney.  Guidance on hiring professional help can be found in the “Find Help” section of www.uphelp.org.  United Policyholders does not sell insurance or certify, endorse or warrant any of the insurance products, vendors or professionals identified at our website.