Question About Sewer Line Insurance – Worth It?

Question

Hey everyone, wondering if any of you carry sewer line insurance and if so, do you go with HomeServe or another provider?

I recently had a property with a sewer line issue despite getting a good scope during inspection. Turns out there are some low spots, and now I’m dealing with costly repairs. The realtor recommended a fix, but it’s expensive.

Looking back, I’m wondering if I should have taken the insurance. Anyone have experience with these policies—do they actually cover the big-ticket repairs, or is it just another unnecessary expense? Appreciate any insights!

Stephen Fisher · Answer

Varun,

I recently added this insurance to all of my policies in both Kansas City and Chattanooga.  I have not personally had to use it, but a close friend of mine did in KC and they paid out no issues.  Additionally, the insurance adjuster said he gets several a week in the Kansas City area due to clay pipes.  Seemed worth it on my end.  I don't work for an insurance agency nor am I trying to sell anything, but the local company I use is great and explained the fine print in detail.  Send me a message if you'd like there info.

Bo Bond · Answer

It may be wise to consider the types of policies being discussed in this thread, as well as not confusing a busted water/sewer pipe with the property coverage known as "water/sewer backup coverage".

#1. You have the standard property policy in play (homeowners / commercial property), which usually do "not" provide coverage for a busted pipe out in your yard that causes "no" damage to your home/rental building.  The carrier usually views this as a maintenance issue since most times busted pipes in your yard don't cause damage to your home/rental building.

#2. There are policies specifically for busted sewer/water pipes on your property.  This would be more of an alternative policy when your homeowners policy, rental policy, or commercial property policy has exclusions for "underground pipes" between your home/rental building and the main line out by the street.

#3. Water/sewer backup coverage, which only comes into play when the water/sewer lines backup into your tub, shower, sinks, toilets, and it flows out and damages the home.  This has nothing to do with a "busted" pipe.  This is coverage that is more common to the property policy, but could also be excluded.  This coverage "only" comes into play when pipes backup (not busted pipes), and push water or sewage back up the lines and into your home.  Most policies "do" provide this protection, but some may exclude it or limit the amount of payout.

Based off your initial question, your situation seems much more likely to be a maintenance issue, and not an insurance issue.  I say that because you know there are low spots in your sewer lines, and you want to fix them, but you didn't mention any damages to your home/rental building.  Insurance protects your property when the sewer/water lines backup or get clogged, and actually spill back into the house causing resulting damage and expensive cleanup.  Your property policy "should" help you when this happens, but likely has certain monetary limits in place.  Check with your agent about this coverage, and any limits that apply.  Unfortunately, most carriers will only give you so much limit for water/sewer backup protection, so you typically can't just request any limit you want.

If you haven't had any backup damage, but you know your sewer lines need to be fixed, that's something no insurance is going to pay for.  It's all maintenance.  The specialty insurance I mentioned in #2 above won't come into play unless there's a busted pipe and you have that type of policy in place.

Hope you find this helpful!  Good luck!

Dominic Mazzarella · Answer

Interesting. 10k will only go so far if it's a private system for certain property types. And I get your concern about them never paying. Definitely read the fine print.

Ed O. · Answer

Based on my anecdotal experience, it is not worth having. We've had lines fail over the yeears, however $15 x unit count x 12 months x years in service = a much higher amount than the sum of the repairs over the 25 years we've been in business.

The only exception to this would be if you had a line scoped and it showed areas of concern, and perhaps a high likelihood of failure in the next 5 years.....

Sewer and water service line insurance are a lot like home warranties or extended warranties. The fear based sellers aren't there to help you, they're in it for a margin.

Varun Chawla · Answer

Thanks for such a crisp and clear explanantion. Makes sense. DO you sell incurance in MO or CA?

Amanda Johnson · Answer

In my area it is $10 a month through our city and covers up to $8500 in repairs on anything outside the house. It does not cover anything inside the house. I along with many other landlords in the area do carry this insurance on older homes. I have heard of payouts as well from multiple people. Thankfully I have not had to use it!

Varun Chawla · Answer

The insurance is very cheap at 10-15 a month and says it covers up till 10k. Although, I am concerned this may be one of those things that never pays out, so wanted to see what other people who have used it have to say about it

Dominic Mazzarella · Answer

Wow I had no idea that sewer insurance was a thing. That could have saved me some serious money on a few deals. It’s one of those expenses that feels unnecessary until you’re hit with a big repair bill.

Do you mind telling us how much the quote for the insurance was? I know sewer line issues can get expensive fast.

Sorry to hear that you're dealing with these expenses, I know exactly how that feels.

Question About Sewer Line Insurance – Worth It?

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