Exterior Water Service Insurance: Worth The Cost?

Water service line insurance is a warranty that offers financial protection in the event of damage to, or caused by, your exterior water service lines. While basic homeowner's insurance doesn't typically cover damage due to normal wear and tear, a water service plan can help homeowners prepare for costly repairs resulting from issues such as corrosion, soil conditions, or clogged water lines. The probability of needing a water line repair or replacement is generally low, and some consider these insurance plans to be overpriced. However, given the potential for expensive repair bills, exterior water service insurance can provide peace of mind and financial protection in the event of a water service line emergency.

Cost of repairs without insurance

The cost of repairing water damage without insurance can vary depending on several factors, including the type of water involved, the extent of the damage, and the area of the home affected.

Water damage can be caused by weather, storms, leaks, or floods, and the type of water involved can impact the cost of repairs. For example, clean water from a rainstorm is less costly to repair than black water from a sewer backup, as more extensive cleaning and decontamination are required for the latter.

The area of the home affected by water damage also plays a role in determining repair costs. For instance, repairing water damage in a 120-square-foot bathroom can cost up to $3,000, while repairing a burst pipe and the associated damage can range from $1,000 to $4,000. Replacing damaged drywall typically costs around $1,500, while repairing damaged plaster walls can range from $6.25 to $18.75 per square foot. Refinishing hardwood floors can cost about $4,000, and replacing carpets can cost between $4.70 and $5.50 per square foot.

Additionally, labour costs can add to the overall expense, with carpentry work costing approximately $70 per hour. Mould remediation, which is necessary to prevent further damage and contamination, can cost around $1,500.

It is worth noting that water damage repairs may also require temporary housing accommodations if the home is uninhabitable during the repair process. These additional living expenses can add up to a few thousand dollars, depending on the duration of the repairs.

In summary, the cost of repairing water damage without insurance can range from a few thousand to several thousand dollars, depending on the specific circumstances and extent of the damage.

Basic homeowner's insurance coverage

Basic homeowners insurance provides financial protection against damage to your house, home loss due to disasters, theft, and other accidents. It covers the costs of repairing or rebuilding your home if it is damaged or destroyed by disasters such as fire, hurricanes, or hail. It also covers additional living expenses, such as hotel bills and meals, if you need to live away from home while repairs are being made.

Homeowners insurance also covers personal belongings, including furniture, clothes, and sports equipment, if they are stolen or destroyed by fire, hurricanes, or other insured disasters. It is important to note that there may be dollar limits on coverage for expensive items like jewelry and artwork. Additionally, most policies provide off-premises coverage, protecting your belongings anywhere in the world.

Basic homeowners insurance also includes liability coverage, which protects you against legal responsibility for injuries and property damage caused by you, your family, or your pets to other people. This coverage includes reasonable medical expenses for those injured on your property. However, it is not a substitute for health insurance, and business activities are typically excluded.

When considering basic homeowners insurance, it is important to understand that standard policies do not cover damage caused by floods, earthquakes, or routine wear and tear. You may need to purchase additional coverage or endorsements for these perils. Additionally, if you have exterior water service lines, it is worth noting that basic homeowners insurance typically does not cover repairs for damage to these lines. You may need to purchase a separate warranty or add-on to your policy to ensure coverage for exterior water service issues.

Water line insurance providers

Water line insurance, also known as a service line warranty, offers financial protection in the event of damage to, or caused by, your exterior water service lines. This is a warranty against the cost of repairs or replacement of your water service line, which is typically not covered by homeowner's insurance.

While it is not necessary to purchase this insurance, it is worth considering, as water line repairs can be very costly. The average cost to replace a main water line is $3,750, but this can vary depending on the length of the water line, the type of pipe, and whether the old line needs to be dug up and replaced.

There are several companies that offer water line insurance, including:

• Service Line Warranties of America (SLWA)
• HomeServe USA Repair Management Corp
• National Home Repair Warranty
• Safety Valve Repair Line
• CenterPoint Energy

Some cities also offer a single exterior pipe plan that covers both water and sewer lines, with prices ranging from $15.99 to $20.97 per month. Many homeowners insurance companies also offer endorsements or policy add-ons that can cover water and/or sewer lines.

It is important to note that water line insurance is typically a warranty contract, not an insurance policy, and it will have exclusions. For example, there is often a 30-day waiting period before the contract takes effect, and pipes broken by natural disasters are usually not covered.

Cost of insurance

The cost of repairing or replacing a water service line can be high, often ranging from $2,500 to $3,750. Basic homeowner's insurance typically does not cover these costs, as they are considered a result of normal wear and tear.

Service line insurance, which is technically a warranty, can be purchased to cover these expenses. This type of insurance is offered by third-party companies and is not usually provided by the utility company itself. Monthly rates for exterior water and sewer line plans can range from $7.99 to $20.97, depending on the city and the specific plan chosen.

Some companies that sell homeowners insurance may also offer endorsements or policy add-ons that can cover water and sewer lines. It is worth contacting your homeowner's insurance company to explore these options.

While the cost of service line insurance may seem low compared to the potential expenses of repairing or replacing a water service line, it is important to consider the likelihood of needing to make such repairs. Water mains tend to last a long time, often 50 years or more, so the odds of a leak or break are relatively small.

Therefore, instead of purchasing service line insurance, some experts recommend building an emergency fund for unexpected repairs. This approach provides more flexibility and avoids the potential pitfall of paying for multiple service warranties that may never be used.

Water line insurance exclusions

Water line insurance, also known as a service line warranty, is a financial protection plan for water line repairs and replacement. It is not the same as insurance, as it is a warranty that covers expected events, whereas insurance covers unexpected events.

Water line insurance is typically offered by a third party, not the utility company, although some utility companies do offer "insurance" against water main breaks. The cost of water line insurance varies, but it is usually a monthly fee ranging from $5.99 to 20.97.

Now, let's discuss the exclusions from water line insurance policies. These are the situations in which the warranty will not cover the costs of repairs or replacement:

• Natural disasters: Pipes broken by earthquakes or other natural disasters are often excluded.
• Waiting period: Many policies have a waiting period, typically 30 days, before the contract goes into effect.
• Neglect: If a leak is caused by neglect, it may not be covered.
• Distance and pipe type: The cost of replacement may depend on the distance between the house and the property line and the type of pipe used. Longer pipes and more expensive pipes will result in higher replacement costs.
• Pre-existing conditions: If the water line was already damaged before the policy was purchased, it may not be covered.
• Specific exclusions: Each policy will have specific exclusions, so it is important to read the contract carefully to understand what is and isn't covered.

Overall, water line insurance can provide financial protection against the high costs of repairing or replacing water lines. However, it is important to carefully consider the exclusions and the likelihood of needing repairs before purchasing a policy.

Frequently asked questions