Service line coverage is a special type of insurance you can add to your homeowners insurance policy. This insurance is in place to reimburse the policyholder for damage to any utility lines the holder is responsible for. This coverage will increase your monthly premium slightly.
As a homeowner, you’re responsible for all utility lines and pipes that run through your property. If a power line is cut, it is your financial burden to take care of. If a pipe breaks on your property, it is your responsibility as well. A basic homeowners insurance policy doesn’t typically cover severed power lines. Luckily adding service line coverage may be available to you and save you thousands.
That being said, If your insurance company offers service line coverage, consider adding it on. The value outweighs the cost by far. Also, depending on your specific insurance, you may not need to pay a deductible on any service line claim. It’s much better to have your peace of mind rather taking a risk by not having utility lines covered.
Service Line Coverage – Homeowners Insurance – St. Clair Shores, MI
“Hey, Pat Brennan with Entrust Insurance. So homeowners insurance is oftentimes something kind of set it, forget it, it’s usually tied into your mortgage and most people aren’t really aware or certain of what their coverages are and albeit it’s your, for most people, your largest investment. So a couple of things we want to touch on with this is service line protection or service line coverage. It’s something that’s offered through select companies as of what I know five to six companies that write in Michigan, so it’s not a coverage that is available through every single insurance company. I’d advise (you to) contact your agent to see if it is available. And the important, for the reason why you may want this is it protects all service lines. So it’s going to cover you from the service provider which is either going to be the pole or your power lines are coming from or from the street where you’re lying buried underground connects to the sewer system. That, in particular, is likely the most expensive of those. If that line collapses or you know somebody who has to have that line repaired–it’s could very easily be an eight to $10,000 repair. If it’s not included on your insurance policy, that is an out-of-pocket expense, something that won’t be covered through insurance. So it is a very costly repair. So recommend it, contact your agent, see if it’s available. If it is, I highly recommend that you add that to your coverage.”
Typical Service Line Coverage
Here are common factors covered:
- Rust, corrosion, decay, and deterioration
- Mechanical or electrical breakdown
- Wear and tear damage
- Insects, or rodent damage
- Tree or root-caused damage to lines
- Pipe Freezing
- Weight of equipment, vehicles, animals or people
Note that service line coverage can vary by company and state. This is why getting quotes from multiple companies is so important. You want the best coverage for your needs and situation. Click the button below for a free quote today!