What is Underground Utility Line Coverage?

Dec 13, 2020 | Personal Insurance

Buried Utility Lines Coverage

What is Buried Utility Lines Coverage or Underground Service Lines Coverage? Now, some probably don’t think about service lines running underground on their property. These are the pipes and wires that connect your home to your energy companies, cable provider, or municipality even if it is not visible. Every homeowner should realize that they are responsible for the underground service lines that run from the street to their home. This means that any drain and water pipe, including underground communication and electric wires running from the street into your home, are all your responsibility to fix should an issue occur. 

What kind of protection comes with Buried Utility Lines Coverage or Underground Service Lines Coverage?

Firstly, Service Line Coverage provides protection against accidental loss due to down power lines. It extends coverage for damages to any of the wiring or piping underground or devices attached to them that connect a home to a private system or a public utility service. Damage to such lines usually occurs unexpectedly and fortunately. That said, this coverage gives protection from failure due to:

  • Decay
  • Hidden defects
  • Freeze
  • Collapse
  • Water Lines
  • Septic Systems
  • Sewer Lines
  • Underground Electrical Wiring
  • Fuel Lines (including gas lines)
  • Internet lines
  • Communication Lines
  • Steam Line Piping
  • Drainage
  • Waste Disposal
  • Underground Cable Lines

However, you can’t always stop the damage from impacting your service lines. You can take the necessary steps to prepare by adding this sort of coverage to your homeowner’s insurance policy. This way you can make sure you have sufficient protection and finally maintain your property for good.

Some carriers even offer additional benefits if you make eco-friendly or energy-efficient upgrades when replacing your equipment. The service line repairs run roughly $3,000-4,000 but can go much higher. These repair costs do not always have coverage with basic homeowners’ insurance.

An example of the type of loss covered by Service Line Coverage is a tree root growing through a sewer line that needs repair or replacement. The expense to repair this can run about $3,000 – $4,000 on average, but can exceed and vary depending on the damage it caused. This isn’t normally part of a standard homeowner’s insurance without this type of supplemental coverage.

Covered Types of Service Line Damage

If the underground service line breaks on your property, you are accountable to repair or restore your service line. As a homeowner, you are financially responsible for virtually anything that happens to and on your property. However, you could be in for thousands of dollars just for repairs out-of-pocket for physical damage you do not even see, and dangers of underground pipes, such as:

  • Rodents
  • Pressure system breakdown
  • Ground freeze
  • Collapse
  • Invasion by tree roots
  • Weight of Equipment, Animals, and People
  • Digging
  • Artificially Generated Electric Currents
  • Lightning strike
  • Corrosion
  • Marring
  • Hidden Decay
  • Mechanical breakdown
  • Landscaping accident
  • Wear and tear
  • Deterioration
  • Rust

Your service line coverage endorsement covers these perils. Covered incidents usually must meet the terms and conditions stated in your policy.


Many individuals believe that their systems and appliances are a part of a traditional Homeowner policy, but this is often not the case. The expense to repair or restore these systems is typically as much as the cost of owning equipment. If these systems malfunction, the repair or replacement costs can be costly and unexpected. Homeowner Equipment Breakdown coverage protects you from the expensive servicing or replacement costs of electrical and/or mechanical breakdown, breaking, or explosion of home systems and appliances. Basically, this covers all your important home equipment due to loss by mechanical or electrical breakdown.

Covered Hhome Equipment Include:

  • Washers and dryers
  • Computers
  • Dishwashers
  • Refrigerators and freezers
  • Ovens and microwaves
  • Garbage disposals
  • Heat pumps
  • Heating and air conditioning systems
  • Electrical service panels
  • Home security systems
  • Water heaters
  • Well water pumps
  • Sump pumps
  • Surround sound systems
  • Swimming pool equipment
  • Televisions

This coverage is an economical way to guard your home’s mechanical appliances and systems, which can be expensive to fix out of pocket. With this additional coverage, all you’ll have to pay is your deductible, and we’ll take care of the remaining cost to repair or replace your items.

What Are Not Covered By Utility Line Coverage?

Every Utility Line Coverage varies depending on how much coverage you’d like to include. Now, here are a few examples of damaged lines on your property that are not covered include:

  • Fuel tanks
  • Service lines damaged by shifting or settling foundations
  • Pipes that run under or through a body of water, including swimming pools, ponds, lakes, etc.
  • Heating and cooling systems, including heat pumps
  • Pipes delivering water supply to an outdoor property, such as decorative ponds, sprinklers, hot tubs, irrigation systems, swimming pools, etc.
  • Underground pipes and wires that provide electricity to an outdoor property, including electric fences, light fixtures, security systems, etc.
  • Septic systems, including septic tanks, leach fields, piping and motors that run from the septic tank to leach fields, and pumps
  • Piping or wiring not connected and ready to use
  • Water wells, including motors and well pumps
  • Stormwater drain pipes
  • Service line blockage or has low pressure since it is not a direct damage
  • Lines damaged by off-premise explosions or other incidents

Is It Required?

It is highly advised that people should have this coverage if their insurance provider offers it.  It’s a relatively new endorsement so odds are it’s not currently included in most policies, if you can add this coverage it is worth consideration. The cost of repairing or replacing these underground lines can be very high. With the property located underground, it’s very difficult to know if you have an upcoming or currently having issue.  This endorsement can take the stress and guesswork out of the equation.

The small cost of service line insurance can really pay off if you ever need to repair or replace a damaged line. After you’ve paid the deductible, you’ll be covered up to the policy limit. Coverage is very affordable with additional service line coverage costing just $20 annually.


Every state has its differences regarding regulations that are related to insurance policies. Here at Advantage Insurance Solutions, we have the best insurance agents in Denver, Colorado to help you today! If you have any questions or clarifications regarding the information above, connect with us right now. Feel free to call us toll-free at 1(720) 221-8168 or chat with us in the pop-up box on the lower right-hand corner of the screen. Just leave your info and we will get right back to you about your concern.

DISCLAIMER: Please note that some of Advantage Insurance Solutions’ articles may have affiliate links from the Amazon Associates Program, with no additional charge to the reader. Before we publish a review, we utilize and evaluate the products we recommend. In addition to the products we’ve personally tested, we’ve received recommendations from many of our readers. That said, we want to make sure it is clear that if you use our links to purchase something, we will receive a small compensation from it. Thank you.