Service Line Coverage: Protecting the Pipes and Wires Under Your Yard

Most homeowners never think about the pipes and cables running underground from the street to their house until one fails. A cracked sewer lateral, a corroded water line or a damaged buried power cable can mean digging up the yard, the driveway or even the street. Many homeowners are surprised to learn that they, not the utility, own and are responsible for much of that line, and that a standard homeowners policy often won't pay to fix it. Service line coverage is designed to fill that gap.

What is a service line?

Service lines are the underground pipes and wires that connect your home to utilities, including:

• Water lines from the meter to your house
• Sewer laterals from your house to the public sewer main
• Natural gas lines on your property side of the meter
• Buried electrical, telephone, cable and internet lines
• Septic lines, depending on the policy

Responsibility usually depends on where the line sits. Utilities typically maintain lines up to the meter or main, and homeowners are generally responsible for the portion on their property. In many cities, the homeowner is also responsible for the sewer lateral all the way to the main under the street. Check with your local utility or city for your specific responsibilities.

Why homeowners insurance usually doesn't cover it

Standard homeowners policies typically exclude or limit coverage for:

• Wear and tear, deterioration, rust and corrosion, which are among the most common causes of line failures
• Tree root intrusion into sewer lines
• Earth movement that shifts or cracks lines. See our landslide and mudflow guide.
• The cost to dig up and repair underground lines

A homeowners policy may cover sudden water damage inside your home from a covered pipe failure, but not the repair of the underground line itself. Sewer backups into your home also typically need a separate endorsement. See our page on sewer backup coverage.

What service line coverage pays for

A service line endorsement, offered by some insurers for a modest added premium, typically covers physical damage to covered underground lines caused by things such as:

• Wear and tear, rust and corrosion
• Tree roots
• Freezing
• Collapse
• Accidental damage, such as from a contractor digging

It often pays for:

• Excavation to reach the line
• Repair or replacement of the damaged line
• Restoring landscaping, driveways and sidewalks disturbed by the work, sometimes subject to sub-limits
• Loss of use if you can't live in your home during repairs, in some policies
• Code-required upgrades to the line, in some policies

Limits are often a set amount per occurrence, and a separate deductible may apply. Read the endorsement carefully.

What it generally doesn't cover

• Lines owned by the utility or city
• Damage from flood or earthquake, unless separately covered
• Lines that serve multiple properties, in some policies
• Pre-existing damage you knew about
• Damage to items inside your home. That's handled under your homeowners policy, if covered.

Utility and third-party warranty plans

Many homeowners receive mail from companies selling service line warranty plans, sometimes co-branded with a city or utility. These are different from insurance endorsements. Before buying one:

• Confirm the company and whether the program is actually endorsed by your city or utility.
• Compare coverage limits, exclusions, waiting periods and deductibles.
• Check whether you'd have to use the plan's contractor.
• Compare the cost with an endorsement on your homeowners policy.

The California Department of Insurance regulates insurance, while some warranty products are regulated differently. If you're unsure whether a product is insurance, ask your broker or the CDI consumer hotline.

Older homes face higher risk

Older homes may have clay, cast iron or other older pipe materials that can crack, corrode or let roots in. Some cities require sewer lateral inspections, and sometimes repairs, when a home is sold or remodeled. See our guide to insuring an older home in California.

Lower your risk

• Know your lines. Find out where your water, sewer and gas lines run, and what material they're made of.
• Call 811 before you dig. It's the national call-before-you-dig number for marking underground utility lines. See Call811.com.
• Plant trees away from sewer lines. Roots seek out moisture in pipes.
• Don't flush wipes, grease or debris. Sewer clogs can damage laterals.
• Get a sewer camera inspection if you have an older home or recurring backups, especially before buying.
• Watch for warning signs: soggy spots in the yard, unusually high water bills, slow drains, sewage odors, low water pressure or sinkholes.
• Install a backwater valve to reduce sewer backups, where appropriate.

Buying a home?

Ask the seller about the age and material of service lines, and consider a sewer camera inspection during escrow. See our first-time homebuyer checklist.

Service line coverage checklist

• ☐ Learn which underground lines you're responsible for
• ☐ Read your homeowners policy's exclusions for wear and tear, roots and earth movement
• ☐ Ask your insurer about a service line endorsement and its limits
• ☐ Add sewer backup coverage
• ☐ Compare warranty plans carefully before buying
• ☐ Call 811 before digging
• ☐ Consider a sewer camera inspection for older homes

Contact Alishahi Insurance or call (877) 711-4545 to ask about service line coverage.

Frequently asked questions

Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.