The insurance market is an ever evolving industry that continually develops new products to meet customer needs. One of those products that we are beginning to see offered with many of our carriers is Service Line coverage.
Service Line coverage is a fairly new product being offered in the insurance market, but in my option it is one of the most useful products to be developed and offered.
For the majority of carriers, Service Line provides coverage for physical loss or damage to a covered service line at the insured premise. Physical loss or damage includes things like:
- Wear and tear
- Rust or corrosion
- Mechanical breakdown
- Freezing
- Tree/tree root invasion
The Service Line coverage is will generally cover:
- Cost to repair or replace
- Excavation cost (if necessary)
- Replacement of Outdoor Property
- Expediting Expense (i.e. rush delivery or service)
The Service Line coverage will provide coverage for most of the below systems:
- Communications
- Drainage
- Electrical Power
- Heating
- Air Conditioning
- Waste Disposal/Sewer Line
- Water
One of the most common types of Service Line claims we have seen is sewer line repair due to tree root invasion. Sewer lines can be very expensive to repair or replace and we have seen numerous customers who have experienced severe damage to their sewer line due to tree roots file claim. Having the Service Line coverage has saved some of our customers almost $20,000, due to the fact that the insurance company paid of repairs and not them personally.
Most carriers are beginning to offer similar coverages, however, there are differences in product offerings between carriers, so when requesting information be sure to ask about the following coverages:
- Is there a limit of coverage? If so, what is the limit?
- Is there a deductible if you have a claim? If so, what is it?
- What specific mechanical systems are covered in the Service Line endorsement?
- What types of damages to the systems are covered?
This is a great coverage many of our carriers offer. Contact us or your agent today for more information and to discuss if adding Service Line coverage is an option for you!