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Service Line Coverage Endorsement

What is a Service Line Coverage Endorsement?

The exact coverage and rules differ from insurer to insurer. However, in a broad brush stroke we will outline the type of insurance protection you may find in the endorsements that DRickard Insurance can offer on some of the Homeowners' Insurance and Landlord Insurance policies we sell. One thing to know is that Service Line Insurance or Endorsements are some times referred to as Sewer Line Insurance.

Service line coverage often times provides protection from an unexpected loss caused by a service line failure. This sometimes unforeseen and costly exposure is not covered under most homeowners insurance policies, and most homeowners do not realize they are responsible for the underground service lines from the street to their home. This product protects the property owner by extending coverage for damage to underground piping, wiring, valves, or attached devices that connect a residence to a public utility service provider or to a private system.

What does the product cover?

This endorsement provides coverage for:

• Damage to your underground service line that is the result of a service line failure. Perils include wear and tear, rust, corrosion, decay, deterioration, hidden or latent defect, freeze, collapse (but not including sinkhole collapse), electrical and mechanical or pressure systems breakdown.
• Costs required to repair or replace the damaged covered service line that is the result of a service line failure.
• Your outdoor property that is damaged as a result of a service line failure or that is damaged during the excavation of your covered service line following a service line failure.
• Extra cost to make temporary repairs; or expedite permanent repairs or permanent replacements to your service line that is damaged as the result of a service line failure.
• Damage to wiring used for communication or data transmission.
• Additional living expense and rental value.

How does the coverage work?

Lets create a sample scenario. (Each policy and loss event is different so it is important to talk to the insurance agents at DRickard Insurance about each case.)

For a small annual premium the policy owner can obtain protection against a common loss event that averages $6,000 per occurrence. The homeowner is responsible for the first $500 (deductible) and then has coverage up to $10,000 (limit).

Loss Examples:

Scenario 1: A tree root grew through a sewer pipe located on the homeowner’s premise causing it to leak. The sewer line was 200’ long and required a backhoe to dig up the damaged piping and replace it. The cost to replace the sewer line was $1,750 and the excavation cost totaled $4,050.

Loss: $5,800
Deductible: $500
Insurance Recoverable: $5,300

Scenario 2: During a cold spell, the pipe connecting the public water pipe from the street to the home sustained freeze damage resulting in rupture. The homeowner had to have the water line replaced. The cost to replace the water line was $1,000 and the excavation cost $3,900. The contractor had to remove a number of trees and shrubs before beginning the excavation process. The replacement costs for the trees and shrubs were $950. The homeowner also had to stay in a hotel for two nights for a total cost of $750.

Loss: $6,600
Deductible: $500
Insurance Recoverable: $6,100

Scenario 3: An underground power line providing electrical service to the home significantly deteriorated over time and resulted in arcing, which interrupted electrical service to the home. The underground power line had to be excavated and replaced due to extensive damage discovered during the repair work. The cost to replace the power line was $2,500. The excavation costs totaled $5,300.

Loss: $7,800
Deductible: $500
Insurance Recoverable: $7,300

How do you get this valuable insurance protection?

This coverage is sold by DRickard Insurance to be added on selected insurers policies for Homeowners or Landlords. What? You don't have your insurance with DRickard Insurance? Let's fix that. When your Homeowners insurance or landlord insurance is with DRickard Insurance we then can review your policy with you and add this valuable coverage.

What will it Cost?

We have seen the annual premiums ranging from $15 to $50 per year. This is much cheaper than some of the offerings that we have heard of at $15 per month. That is $180 a year! It is certainly worth seeing what we can do for you with this great insurance coverage. Handily you may contact us at 607-843-8860 or insurance@drickardinsurance.com or when available click our live chat option on the left border of this page.

All prices, programs, features, underwriting, offers, representations and companies shown in this site are subject to change without notice. We may add or discontinue a company or program or an insurer may change underwriting criteria or product line availability without notice to us. With the insurance industry constantly changing we may not be able to keep the site up with the latest information. For the up to date info please contact us. All insurance applications are always subject to current underwriting rules, acceptance of the insurer and adequate premium paid.