Customer Reports About Outside Water Line Insurance?

Homeowners should weigh their options when considering buying water line insurance from utility companies to repair outside leaking pipes. Monthly rates for exterior water service line plans range from $4.95 to $12.98, while for exterior sewer/septic line plans, they range from $7.99 to $12.98. However, claims data from a WSSC interoffice memo indicates that only 4,450 exterior water and sewer claims were made from the 126,207 plans purchased during the program’s first 2½ years.

Water-sewer line warranties cover damage to underground pipes in a homeowner’s yard. Consumer advocates are concerned about how these plans are marketed and question the necessity of them. Service line endorsements cover the sections of these lines you are responsible for, such as exterior water service line coverage.

Flood insurance does not cover all risks, but it may be worth considering if you live in an area prone to flooding. Standard homeowners insurance policies generally cover repairs to a property’s water- and gas-service lines if damage is accidental, but they do not cover all damages. Service line coverage is a homeowners insurance endorsement that reimburses you in the event of a utility line being damaged.

Checkbook’s research finds that few homeowners ever have to deal with expensive water or sewer line repairs or replacements. In most neighborhoods, outside plumbing insurance is a total waste of money, but if your neighbors have experienced problems, it can be worth considering.