I’ve got some utility line coverage news that just came off the wire. For the first time in California, from any home owner insurance company that I know of, Farmers Insurance is going to offer you replacement or repair any a broken utility line that runs from your home out to the street.
It’s called ‘Service Line Coverage‘. The service line coverage endorsement provides coverage up to the applicable limit of insurance for unexpected loss that can occur to a service line that fails. Many home owners don’t realize that they are responsible for the underground service lines that runs from the street to their home. This product extends coverage for certain types of damage to underground piping or wiring that connects to the home.
Here is some more information about this utility line coverage. This endorsement provides coverage for damage to an underground service line as a result of a service line failure. Costs required to hire a backhoe to actually dig up the back yard to replace the line. Certain damage to the wiring used for communication or data transmission.
And get a load of this, Farmers will actually pay your additional living expenses if you have to live somewhere else while the work is being done or if it’s a rental property they will pay your loss of rent/s.
Here are the covered perils or accidents or things that can occur that Farmers Insurance will actually cover:
- Wear and Tear (That’s huge, most insurance companies never cover wear and tear as all of us know.)
- Hidden or Latent Defect
- Collapse. Collapse is one of the biggest reasons that the sewer lines get clogged up.
- Mechanical Breakdown
- Pressure System Breakdown
So for a small premium for only $25 per year Farmers Insurance will give you utility line coverage. Let me finish up by giving you two examples:
- Let’s say that a tree root grew through a sewer pipe located in your backyard causing it to leak. The sewer line was 200 feet long and required a backhoe to dig up the damaged piping and replace it. That is covered up to $10,000 for you.
- An underground power line providing electrical service to the home significantly deteriorated over time and resulted in arcing. The underground power line had to be excavated and replaced, due to extensive damage discovered during the repair work. Again, Farmers Insurance will pay you up to $10,000 for this work.
Wherever you go in California you’re unlikely to find utility line coverage and we are the first company, as far as I know, to introduce it to the state.