Glossary
Service line coverage, defined
An endorsement that pays to repair the buried pipes and cables running between a home and the street, which the utility does not own and the homeowner is responsible for.
In practice
Water supply, sewer laterals, natural gas, electrical and data connections between the street and the house sit on the homeowner's side of the meter or property boundary. Standard policies exclude damage caused by wear, tree roots, freezing underground, animals, corrosion and the weight of equipment, which are exactly what break these pipes. The endorsement pays for the excavation, the repair, restoring landscaping and often the extra cost of living elsewhere while water is off. Older homes with clay or galvanized pipe and mature trees are the ones exposed. Some utilities sell a separate warranty product; the endorsement is usually cheaper and broader.
A worked example
Suppose a root cracks the sewer lateral under a front yard. Digging it up and replacing the pipe costs $9,000 and re-sodding the lawn $1,500. With a $10,000 limit and a $500 deductible, the endorsement pays $9,500 plus a few nights in a hotel. Hypothetical.
Applies to: Home Insurance