What is Service Line Coverage?

January 13th, 2015 by admin

Farmers of Salem’s service line coverage provides protection from an unexpected loss caused by a service line failure. This sometimes unforeseen and costly exposure is not covered under most homeowners insurance policies, and most homeowners do not realize they are responsible for the underground service lines from the street to their home. This product protects the homeowner by extending coverage for damage to underground piping, wiring, valves, or attached devices that connect a home to a public utility service provider or to a private system. Contact us  to obtain this coverage.


What does the product cover?

This offering provides coverage for:

  • Damage to your underground service line that is the result of a service line failure.
  • Costs required to repair or replace the damaged covered service line that is the result of a service line failure.
  • Extra cost to make temporary repairs; or expedite permanent repairs or permanent replacements to your service line that is damaged as the result of a service line failure.
  • Your outdoor property that is damaged as a result of a service line failure or that is damaged during the excavation of your covered service line following a service line failure.
  • Additional living expense and rental value.

How does the coverage work?

For an annual premium of $25 the homeowner can obtain protection against a common loss event that averages $6,000 per occurrence. The homeowner is responsible for the first $500 (deductible) and then has coverage up to $10,000 (limit).


Loss Examples

A tree root grew through a sewer pipe located on the homeowner’s premise causing it to leak. The sewer line was 200’ long and required a backhoe to dig up the damaged piping and replace it. The cost to replace the sewer line was $1,750 and the excavation cost totaled $4,050.

Loss: $5,800

Deductible: $500

Insurance Recoverable: $5,300


During a cold spell, the pipe connecting the public water pipe from the street to the home sustained freeze damage resulting in rupture. The homeowner had to have the water line replaced. The cost to replace the water line was $1,000 and the excavation cost $3,900. The contractor had to remove a number of trees and shrubs before beginning the excavation process. The replacement costs for the trees and shrubs were $950. The homeowner also had to stay in a hotel for two nights for a total cost of $750.

Loss: $6,600

Deductible: $500

Insurance Recoverable: $6,100


An underground power line providing electrical service to the home significantlydeteriorated over time and resulted in arcing, which interrupted electrical serviceto the home. The underground power line had to be excavated and replaced dueto extensive damage discovered during the repair work. The cost to replace thepower line was $2,500. The excavation costs totaled $5,300.

Loss: $7,800

Deductible: $500

Insurance Recoverable: $7,300