Does Homeowners Insurance Cover Sewer Lines?
There aren't many things that your homeowners insurance will cover when it comes to your sewer line. If a section of the line on your property is damaged by a sudden and unexpected event, it is usually covered. If there is a sewage backup or the damage is the result of a chronic problem, you will most likely have to pay to repair or replace the line out of pocket.
When does homeowners insurance cover your sewer line?
Technically, the portion of your sewer line that is on your property is considered a "other structure" of your home, which means it is protected in the same way as your home itself.
Types of sewer damage covered by homeowners insurance
- Lightning or fire
- Hail or windstorm
- Explosions
- Damage caused by vehicles
- Vandalism
- Falling objects
- Riots or civil disturbances
- Volcanic eruption
- Damage caused by aircraft
For example, if an explosion in your yard damaged the sewer line, the damage would be covered by your homeowners insurance policy up to the amount of your deductible. The source of the damage must be something beyond your control. The damaged section of the pipe will also have to be on your property. If the pipe is damaged outside of your property line, it is the responsibility of the entity that owns the damaged part to repair it. Unfortunately, the majority of the common ways sewer lines are damaged are preventable and thus uninsurable.
How much is your sewer line covered for by insurance?
If you have coverage, most standard home insurance policies limit coverage for "other structures" to 10% of the total value of your home. If your home is insured for $600,000, "other structures" such as your shed, fence, and septic tank may only be covered up to $60,000. We recommend that you check your individual policy to ensure that this is the case, as it may differ. The 10% should be sufficient to cover the costs. According to CostHelper.com, the average replacement cost for a sewer line is between $3,000 and $6,000.
When is your sewer line not covered by insurance?
When the sewer line backs up into your home or is physically damaged due to preventable causes, insurance will not cover the cost of repair or replacement.
Physical damage to the pipe
Your homeowners insurance company will not pay for repairs if the physical damage to the pipe can be attributed to poor upkeep, faulty construction, or a preventable error. Furthermore, there are a number of disasters that your insurer will not cover under a standard policy. Damage from earthquakes, floods, pests, and tree roots are a few examples. Separate insurance policies are required for earthquakes and floods.
Sewage backup
Every homeowner's insurance policy expressly states that sewage backup damage is not covered. Whatever the water or raw sewage destroys will not be covered by the insurance company. Unfortunately, many causes of sewage backup can be traced back to physical damage to the pipe, which can result in a hefty bill to replace the pipe and repair whatever was destroyed in the home.
Sewage backup endorsement
Most homeowners insurance companies provide an endorsement to your standard policy that will cover damage caused by sewage backup (but not physical damage). According to the Insurance Information Institute, the endorsement typically costs an additional $40 to $50 per year and provides an additional $10,000 in coverage if your sewer backs up. Unfortunately, $10,000 is unlikely to be sufficient to cover a massive sewage backup. A sewage backup destroyed this Oregon homeowner's entire home, costing him more than $300,000. The best course of action is to avoid a sewage line backup in the first place.
Service line protection endorsement
If you want more coverage for sewer lines than the standard homeowners insurance policy provides, you'll need to purchase a service line protection endorsement. Unfortunately, not all insurance companies provide this endorsement, so you may have to switch insurers to obtain it. The companies with the best service line protection endorsements are listed below.
Erie: Best service line endorsement
Erie not only provides a service line endorsement, but it is also one of the best-reviewed and rated home insurers in the country. Erie allows policyholders to choose between coverage limits of $10,000 and $25,000. The following service lines are covered by Erie's service line endorsement:
- Sewer pipes
- Water lines
- Cable lines
- Internet and electric wiring
- Natural gas pipes
- Propane pipes
Mercury: Runner-up for best service line endorsement
Mercury's service line endorsement lacks the coverage limit options available to Erie policyholders. Mercury, on the other hand, reimburses customers for their lodging expenses if they are forced to live away from home due to service line damage. For example, if your sewer pipe breaks, Mercury will reimburse you for the cost of a hotel room while the problem is repaired, potentially saving you hundreds of dollars.
How to take care of your sewer line
The majority of sewer line problems are caused by human error and poor maintenance. As a homeowner, you should develop a number of habits to ensure that your sewer does not back up in the future. Among these practises are:
- No flushing of nonbiodegradable objects or oils
- Replacing metal pipes with plastic
- Keeping track of tree roots
- Having your plumbing inspected regularly
Clogging caused by flushing objects that should not be flushed is the most common cause of sewage backup. Cooking oils are particularly hazardous because they can clump together and clog pipes. Because of how easily paper towels aggregate in a pipe, they are also harmful to flush.
If you can afford it, replacing your metal pipe with a plastic pipe will help reduce the risk of tree roots creeping into the pipe and damaging it. Lastly, getting the plumbing into your home inspected just once will alert you to any major dysfunctions of the system. Perhaps the pipe has corroded or the valves are faulty — these are things that can cause significant damage but are much less expensive to repair before they become major problems.