Do your investor clients know that damage to external service lines is not covered under a standard property policy? Depending on the type and severity of the damage, repair work can be quite expensive. HomeGuide reports that the average cost to replace or repair a main sewer line is $3,818, with most spending between $2,250 and $5,750. A complete replacement can cost anywhere from $8,000 to $30,000. REInsurePro offers a Service Line coverage add-on to help protect investors financially in the event of a costly incident.
What is considered a service line?
Service lines are exterior underground utility lines that run from the street to the home and provide a service to the premises. Utility lines may include water pipes, power lines, cables, and the main sewer line.
Service lines we cover include, but are not limited to:
- Communications, including cable transmission, data transmission, internet access, and telecommunications
- Compressed air
- Electrical power
- Heating, including geothermal, natural gas, propane, and steam
- Waste disposal
What type of damage does Service Line product cover?
This product covers the failure of a service line. In this case, “failure” means a leak, break, tear, rupture, collapse, or electrical arcing. A covered service line failure may be caused by, but is not limited to, the following perils:
- Wear and tear, marring, deterioration, or hidden decay
- Rust or other corrosion
- Mechanical breakdown, latent defect, or inherent vice
- Weight of vehicles, equipment, animals, or people
- Vermin, insects, rodents, or other animals
- Artificially generated electrical current
- Freezing or frost heave
- External force from a shovel, backhoe, or other form of excavation
- Tree or other root invasion
*Service line failure does not include blockage or low pressure when there is no physical damage to the covered service line.*
Potential Service Line losses in our program
Insured losses may include damages to covered service lines, excavation costs, outdoor property, and expediting expenses. Below are a few common losses related to service lines and if they are insured:
- Tree roots have grown into the property’s water line, causing a break. As a result, water from the main line fills the investor’s yard, and the water bill is 4x the usual amount.
- The cost to excavate and replace the water line is insured.
- The additional water bill expenses are not insured.
- A tenant flushed multiple non-flushable items creating a clog in the line between the house and the main sewer line. The line remains intact but causes the sewer to back up into the property.
- The cost to excavate and replace the sewer line is not insured because there was no physical damage to the service line.
- The cost to clean the sewer backup damage inside the home is not insured.
- REInsurePro offers the Tenant Protector Plan for instances like these. TPP includes a sublimit of property coverage for Sewer & Drain Backup. Learn more about this offering here.
- A tenant regularly parks their vehicle in the yard, directly over a service line. As a result, the line breaks and must be replaced.
- The cost to excavate and replace the line is insured.
REInsurePro’s Service Line offering has two coverage limits- $10,000 or $15,000. Although, coverage for lines that are 50 years or older is limited to $2,500.
Service Line coverage can be added to your client’s locations at any time by endorsement. Contact your Sales Manager if you have questions.