Service Line Coverage: What Is It, and Do You Need It?
What is service line coverage?
Service line coverage is an optional add-on to home insurance coverage that covers costs associated with the failure of a service line located on your property.
Canadian homeowners are responsible for all necessary repairs to service lines located on their property, but coverage for service lines is not a standard component of home insurance. Instead, service line coverage is a common endorsement that can be added to your base policy.
Your responsibility for damaged service lines
All service lines on your property—including power lines, geothermal ground loop piping, telecommunications/data transmission lines, and water mains—are your responsibility as a homeowner. This includes both underground service lines and above-ground utility lines.
If a service line fails on public or municipal property, the city or local government is responsible for replacing it, but if the failure occurs behind your property line, you’re responsible for the full cost of service line repairs.
What does service line coverage typically cover?
When added to your home insurance, service line coverage can help to cover:
- Excavation costs if a service line fails on your property
- The cost of repairing a failed service line
- Temporary repairs or expedited repairs
- Replacement or repair of your outdoor property or landscaping if damaged by a failed service line
- Additional living expenses, such as a hotel room, if you’re unable to inhabit your home during repairs
Service line coverage details vary, including the exact types of service lines covered. Check your policy language to make sure you understand all coverage and exclusions.
Service line coverage applies to a service line that fails due to:
- Wear and tear
- Rust, corrosion, or decay
- Freezing
- Damage or collapse caused by tree roots
- Weight of people, equipment, or animals
Service line coverage is a major exception to the rule that homeowners’ insurance won’t cover damage due to wear and tear. If your home’s plumbing fails due to normal wear and tear, your homeowners policy likely won’t cover the cost of repairs, but if a covered service line fails due to wear and tear, service line coverage will typically pay for repairs.
What isn’t covered?
Septic systems are often excluded from service line coverage, along with heating and cooling systems. If a septic line breaks on your property, you may not have coverage. You also won’t be covered for damage associated with the failure of underground piping that’s not hooked up.
Sinkhole collapse is also typically excluded from the covered causes of service line failure.
Ask your insurance broker, agent, or advisor to explain all exclusions in your service line coverage agreement before you sign.
How much does it cost to repair a service line?
Service line repair costs vary considerably based on the type of service, extent and location of the damage, and materials and labour costs in your area.
For instance, a minor service line failure might generate $2,000–$3,000 in repair costs, or even less if the repairs are simple. But the cost of a service line repair in Ontario can quickly balloon if multiple factors are involved, such as:
- Driveways, walkways, and landscaping: If excavation disturbs any of these, the cost can quickly increase compared to a simple excavation under plain earth.
- Trees, shrubs, and decorative structures: If the service line failure damages your outdoor property, the cost to replace these features is added to your total cost.
- Loss of use: If you need to spend one or more nights in a hotel while work is completed, your costs increase again.
A major service line failure that cuts off your water supply, damages landscaping, necessitates digging up your driveway, and leaves you in a hotel for two to three nights could easily reach $10,000 or more in total costs.
It’s hard to predict the total cost of service line repairs, but homeowners insurance exists to pay for the unpredictable. Having a service line endorsement in place before a failure can bring peace of mind that you’re covered no matter the cost.
Is service line coverage worth it?
For most Canadian homeowners, service line coverage is a low-cost addition to an existing home insurance policy that pays back huge returns if you’re unlucky enough to need it.
You may need to consider a service line coverage endorsement more seriously if:
- You own an older home: The older your home, the more likely that the service lines on your property are also old.
- Your property has multiple large trees: The root systems of trees can infiltrate and damage underground service lines.
- Your area uses clay sewer pipes: Clay pipes are fragile and can increase the risk of a service line failure.
How to add service line coverage to your home insurance policy
Service line coverage is typically an endorsement for home insurance—that is, an optional add-on that customizes your coverage. Options vary by insurance company.
- If you already have home insurance: Ask your current carrier about a service line endorsement. Review coverage limits, exclusions, and other terms carefully and consider comparing other offers if you have any concerns with what your current carrier offers.
- If you don’t have home insurance yet: When requesting home insurance quotes, ask to have a service line endorsement added to your offer package. You can compare the cost of the policy with and without this endorsement and look at options from different insurers.
If you’re in the market for home insurance quotes with service line endorsements, take the time to speak with a licensed insurance advisor. PolicyMe pairs all customers with a licensed advisor who can review your coverage selections, take a close look at your financial situation as well as any risk factors on your property, and offer tailored recommendations based on industry experience.
FAQ: Service line coverage
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.