Is Insurance For External Electrical And Water Lines Worthwhile?

Homeowners should consider whether buying water line insurance from utility companies to repair outside leaking pipes is worth the cost. Service lines, such as water and sewer lines, run underground and supply a specific service to a home. A “Exterior Water Line Coverage” plan covers the sections of these lines you are responsible for, such as exterior water service line coverage.

Insurance is never “worth it” until you need it, and paying a little money every month to insure them seems prudent in specific circumstances. Electric companies claim that homeowner’s insurance won’t cover the cost if any of the parts break to your exterior electrical lines. Millions of U.S. homeowners regularly receive official-looking notices on letterhead bearing the logos of their utility companies, containing ominous warnings.

For just $5.49 a month, you can buy water line protection. The letter claims it could cost thousands of dollars to repair that water line, but it is not worth it. The only time components will get damaged is if a tree falls on your service drop and rips the conduit off the house. The maximum benefit limit is up to $5,000 for each service call.

A warranty could be helpful if you want to avoid a surprise when you receive a letter from HomeServe suggesting that you should pay $55 a year for exterior water service line coverage.