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commercial insurance coverage for underground pipes

Water Damage Commercial Property Insurance Coverage

By: Mary Thompson, Capstone Brokerage President, May 26, 2016

Water is something we all need to survive; it is an intricate part of life. What happens when water ends up in the wrong place? Well, it can be destructive and a costly force to be reckoned with. Water can destroy a company’s building and the contents inside. Not to mention if “water” comes up from the wrong place it can create a hazmat situation.

What business needs insurance for water damage?

Simply put almost all businesses should have water damage coverage. Why you might ask? If your business has an HVAC system there is a threat of water damage. If your business has a bathroom facility there is a huge risk of water damage. A malfunctioning toilet or sink can quickly become a problematic water and hazmat issue. Businesses with a physical location can also be damaged by water from storms or floods. Very few businesses are not susceptible to range losses caused directly or indirectly by water. Insurance coverage plays a huge role in protecting a business from water damage. There are many insurance policies (and riders and endorsements) available to cover these risks and protect your business. It surprises me often when a business does not want water damage covered either included or added to the Commercial Property Policy already in place.

Commercial Property Insurance and Coverage for Water Damage

The rules pertaining water damage coverage are not written in stone when it comes to property insurance coverage. Some policies will include only certain kinds of water damage; some may not cover any water damage at all. It is important to understand what the policy cover to ensure you are protected. When placing your insurance with a carrier or receiving quotes for coverage be sure to read the policies cause of loss portion, to see if water damage is covered and at what level. There are options to add endorsements or riders to the policy to include more water damage coverage if the business feels the need to. The 2 most common water damages risks:

1. Busting pipes: Many businesses especially those who are in regions of the country where extreme cold weather is present are a risk for bursting pipes. Now pipes are not visible making the damaged caused by busting pipes often hidden and can go un noticed for a longer duration. This in turn can create a much bigger issue then the water itself, think mold. Many commercial property policies will cover at minimum bursting pipes.

2. Gradual Leaks: This is when a pipe or hose slowly leaks water. Possible concerns for gradual leaks, appliances, HVAC units, fire sprinkler systems, plumbing both underground, and visible. Many commercial property policies will not cover losses caused by water leakage or seepage that is gradual, slow, intermittent, or constant. In these cases, the insurance company may point out that they insure against damage that is sudden and accidental and not damage resulting from owner’s negligence or the normal wear and tear of materials. The property insurance coverage probably will not apply if the damage could have been prevented by regular maintenance and preventive measures.

There are often listed exclusions on a commercial property insurance policy when it comes to water damage. For example, the policy will usually list specific situations when there will not be coverage. The most common exclusion is flood exclusion.

Recently at Capstone we learned water damage is not something fun to deal with. Our restroom started to back up and overflow which resulted in damage that was more than you would think. It happened over the weekend leaving carpet, tile, walls and cabinets soaking in waste. We had to replace the carpet, padding, drywall, plumbing, and have a team come into make sure the area was dry and sanitized properly. It is smart to check your Commercial Property Insurance policy to see what water damage coverage you have. It never hurts to add more coverage to better protect your business.

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commercial insurance coverage for underground pipes

What Business Owners Need to Know About Filing Insurance Claims for Burst Water Pipes

Nothing can bring a business’s operations to a halt faster than the sudden burst of a water pipe. Our insurance claims attorneys want to prepare owners for the next steps after these incidents, including how to file a claim that will allow maximum coverage for water damage to a commercial building.

Why are Some Burst Pipe Claims More Costly Than Others?

Water Pipe in a Commercial Building Burst Texas Insurance Claims

Many different factors can affect the extent of damage from a burst pipe , including:

Business location

The most common cause of water damage from internal plumbing is frozen water pipes . When temperatures drop suddenly, standing water in the pipes expands, cracking the pipe or busting through its seams. Pipes may freeze even in areas where snow and ice is less common in winter, especially if pipes are not properly insulated.

Building design and construction

The design and layout of the structure can impact both the likelihood and extent of water damage. Common structural factors that lead to burst pipes include unheated attics, failure to adequately insulate pipes between interior and exterior walls, and faulty installation of plumbing systems.

Sprinkler systems

Fire suppression systems can save lives, but they can also make flooding insurance claims more costly. Water from sprinklers come from larger pipes, has a more forceful water flow, and is sprayed directly from overhead using a wide dispersement system.

Multi-story buildings

Water will spread across floors, through porous surfaces, and down into the lowest recesses of a building, contaminating everything it touches along the way. If a pipe bursts on the upper floor of a hotel or an apartment complex, owners may have to replace drywall, lighting, flooring, and carpeting in every unit beneath the leak.

Older buildings increase both risks and costs associated with water damage, since older pipes are more likely to break and may need extensive updates when they do. If a pipe bursts in an older structure, owners will need to pay for any updates needed to bring the building into compliance with current building codes .  

Take Action Now to Prevent a Burst Pipe from Eating Into Your Profits

Owners are often underpaid for their water damage claims simply because they don’t fully understand the terms of their property damage insurance policies. It is essential that you read your policy carefully to determine which losses are covered, what events will trigger coverage, and whether certain coverages may be extended in a large-loss situation.

Once you know what you can inspect from an insurer after a pipe bursts, you can take additional precautions against these losses by:

Investing in risk management

  • There are many small and cost-effective interventions that can help property owners prevent leaks before they cause a problem. A plumber who is familiar with commercial structures can properly identify and diagnose issues in the plumbing system, alleviate pressure on overloaded systems, or install leak detection and warning technology.

Taking advantage of optional extras

  • Commercial insurers typically offer a wide range of endorsements to their policies for an additional fee. Policy additions such as increased cost of construction , extra expense and umbrella coverage, and line-of-sight coverage can offset costs during rebuilding and allow you to correct both structural and aesthetic imperfections.

Increasing business interruption coverage

  • The larger your commercial enterprise, the more you could lose when a flood damages the property. Your business interruption insurance should be enough to cover your monthly operating costs (including employee payroll), profit losses, temporary relocation, and other ongoing expenses even in a worst-case scenario.

Cost-effective specialized inventory and equipment

  • Your insurance policy should always take into account the specific needs of your business. For example, flooding in a restaurant can cause environmental concerns, causing the destruction of perishable stock and requiring hazardous material cleanup to protect against contamination of food and water.

What to Do Immediately After Water Damage Is Discovered

The first thing you should do after the water has been shut off is to notify your insurance company. Insurers have strict rules about prompt notification of losses, and reporting the damage early allows your claim to get started as soon as possible.

Once you have notified the insurer of your intent to file a claim, you should:

Show the extent of your losses

  • The evidence you present to your insurance company is directly related to the amount offered on your claim. Before you take steps to correct the damage, make sure you have photos and video of the damage and the condition of the property immediately after the leak occurred.

Prevent further damage

  • Policyholders have a duty to begin cleanup and drying procedures to prevent further losses, such as removing water from interior spaces. However, you should not make any permanent repairs or perform anything other than reasonable or necessary flood mitigation until an insurance agent has seen the damage.

Complete and file your claim

  • Your claim may require extensive documentation, including inventory lists (including prices, dates of purchase, and serial numbers), past and projected income estimates, and receipts for out-of-pocket expenses. Once you have submitted the claim, you should keep a copy in your own record, as well as any correspondence between you and the insurance company.

Get help from an insurance litigation attorney

  • Unfortunately, insurers often attempt to deny water damage claims by blaming the policyholder, citing the owner’s own failed maintenance or negligence as the reason the pipe burst in the first place. When this happens, a commercial insurance attorney can help you get fair payment for your losses.

Commercial policyholders often experience unfair denials, delays, and underpayments for their water damage insurance claims. If your insurer is refusing to pay for damages, it may be necessary to hire an attorney to advise you on your next steps. Simply fill out the form on this page today to contact an insurance attorney at the Voss Law Firm or order a free copy of our book,  Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim .

If No Recovery No Fee Guarenteed

The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

Please contact us today for a FREE, no obligation, confidential consultation with a qualified policyholder attorney.

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Commercial Service Line coverage

Critical protection for small businesses, properties.tracktitle.

properties.trackSubtitle

A service utility line breakdown can cost thousands of dollars

A breakdown to a service utility line can cost a building owner or a business thousands of dollars in repairs and downtime. Many small business owners assume those breakdowns are covered under their business owner policy (BOP). The building owner or business is responsible for underground piping and wiring to the building, including those for:

  • Electricity
  • Communications, including cable and data lines

Helps pay costs for service line failures

HSB’s Service Line coverage can be added to a BOP to help close the property coverage gap. It covers multiple types of utility lines and can help pay for breakdowns caused by:

  • Deteriorating lines
  • Accidents with tools and machinery during excavations
  • Damage from heavy equipment moving above underground lines
  • Root invasion

Covers loss of income and other expenses

Small businesses will get additional benefits with HSB Commercial Service Line coverage. It also covers costs for:

  • Loss of business income
  • Expediting expenses
  • Efficiency improvements
  • Spoilage of perishable goods

Service Line coverage is easy to add

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Insurance Term:

Underground pipes, flues, and drains.

Underground pipes, flues, and drains may not be covered under a standard commercial property policy. Some coverage does include underground pipes if the damage is caused by a covered peril, such as frozen pipes. Coverage for underground pipes, flues, and drains may be purchased as an extension or add-on from some insurers.

commercial insurance coverage for underground pipes

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Service Line Coverage for Homeowners

  • Helps pay to fix damaged underground service lines
  • Insure sewer pipes, water lines and power lines

What does service line insurance cover?

Not covered, how service line coverage protects you, did you know.

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Frost Heave and Line Freezing

Rainwater collected in soil can freeze in icy weather. This event can shift the ground, causing sewer lines to “heave” upwards and possibly become damaged. Sewer line insurance can cover repairs for these types of extreme weather conditions.

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Corrosion and Rust

Over time, iron and steel-based sewer lines can oxidize and corrode. Small holes develop and fluid can leak out, further damaging the pipe. The standard service line policy may cover these cases.

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Root and Tree Invasion

Active leaks in sewer lines may attract nearby tree roots. Outgrowths can infiltrate tiny crevices in pipes, then crack them as they grow and expand. The standard service line policy may help with sealing these entry points.

Frequently Asked Questions

How can i notice sewer line damage, besides water and sewage, what’s covered, what’s the average repair or replacement cost, how much can this coverage give, does my local municipality ever pay for service line damage on my property, trusted by over 12 million customers & counting.

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*This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

**Tenth Edition of Biannual State of the Home Survey Finds HVAC and Toilets Source of Most Common Home Repairs, HomeServe USA, https://www.homeserve.com/media/biannual-state-of-the-home-survey-spring-2020 (last visited July 18, 2023), [https://perma.cc/4YHW-8XQV].

***How Much Does Sewer Line Repair and Replacement Cost in 2023?, Forbes Home, https://www.forbes.com/home-improvement/plumbing/sewer-line-repair-replace-cost/ (last visited July 18, 2023), [https://perma.cc/V2FN-ZW7N].

Facts + Statistics: Homeowners and renters insurance, Insurance Information Institute, https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance/ (last visited April 6, 2023), [https://perma.cc/79S7-E34T].

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Insuring Underground Property

Apr 18, 2018 | Commercial Property , Homeowners | 2 |

Insuring Underground Property

But how likely or extensive can damage be to underground property? Here are two recent articles that indicate how serious and widespread the exposure can be, including the pollution exposure:

“Santa Rosa Fire Damage Extends Underground” https://www.pressreader.com/usa/san-francisco-chronicle-late-edition/20180415/285172948876140 https://www.sfchronicle.com/bayarea/article/Another-gut-punch-for-Santa-Rosa-Fire-destroys-12834914.php

“Underground Power Lines and Wildfires” https://www.sfchronicle.com/bayarea/article/Underground-power-lines-don-t-cause-wildfires-12295031.php

While such claims are relatively rare, providing an endorsement option to customers could be a good idea, along with using policy forms that don’t exclude underground property.

Thanks to Cliff Treese at CIRMS for the Santa Rosa link.

commercial insurance coverage for underground pipes

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Helen

Fascinating reading on the underground exposure and the cost to clean-up and/or use better risk management in the future (burying power lines) at what additional expense. Horrible options for the people who lived or live in these areas. Talk about being uprooted and when they advise that the majority of wildfires are caused by humans, it makes the realization of what has been lost come home to roost. So much has been lost that will take so much time to regain…it ever.

Bill Wilson

I’ve seen photos over the years of neighborhoods where every house is destroyed except one or two. As long as you have adequate insurance, it’s probably better that you lose your house. Imagine the market value of the house(s) that remain, practically nothing, especially if the neighborhood never rebuilds.

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4 Commercial Property Endorsements You’ve Never Heard Of But Should Know How to Use

  • Building Codes Turn Partial Property Losses into Total Losses
  • ISO's Business Income Response to COVID-19
  • Author: Mike Edwards " data-content="Commercial insurers have increasingly incorporated provisions into their coverage forms and/or endorsements that can create significant coverage gaps when property is insured on a blanket basis. The use of a margin clause places a cap on how much an Agreed Value option will pay on a blanket policy. In addition, a margin clause also functions with coinsurance, where applicable. This article explains the danger with real life, tangible examples."> Margin Clauses and Blanket Insurance
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Removal of any property from the “property not covered" list and its endorsed inclusion on the “covered property" list is, of course, subject to underwriter approval and an additional premium.

Interestingly, some of the real property listed as “property not covered" is generally included in the building's replacement cost calculation. Foundations and the cost of excavations, grading, filling, and backfilling are prime examples. This property and costs are excluded by the unendorsed policy at the time of a loss, but the building cannot be rebuilt unless and until the prep work is completed and the foundation is laid.

Agents should use the policy's list of “property not covered" as a tool to help them manage the client's insurance risk. Combined, the list of excluded property and the applicable endorsement can be used like a checklist to confirm that all the insured's exposures have been discovered and discussed. Besides, I'll bet dollars to donuts that no other agent has explained that property the insured thought was covered is not covered. Agents have the opportunity to present a gap and the solution in one conversation.

CP 14 15 – Additional Building Property

Is a particular piece of insured property considered “building" or “business personal property"? Unless the intent is made clear up front, the answer might be subject to interpretation following a loss. The unique purpose of the CP 14 15 - Additional Building Property endorsement is to avoid these gray areas at the time of loss by specifically covering such property as “building."

“Permanently installed machinery and equipment" is defined as part of the “building" within the CPP. But “machinery and equipment" is listed within the definition of “business personal property." The difference is obviously the term “permanently installed;" however, what constitutes permanent installation? Is it permanently installed when bolted to the floor or wall such that removal would cause damage to the building? What about equipment that is bolted to “real property" (making it real property by definition), but which can be easily removed with no signs of damage after some minor repair? A few examples of “permanently installed equipment" might include a pipe organ in a church; semi-permanently installed equipment, chairs and tables bolted to the floor in dental and medical offices; and production machinery simply bolted to a concrete floor to keep it from vibrating out of place. Although not an all-inclusive list, these are examples of the gray common to the concept of “permanently installed."

Another potentially fuzzy situation is loss to real property improvements and betterments made by the tenant in a leased space. The definition of business personal property extends to include the tenant's “use interest" in their improvements and betterments; but what about the value of the improvements and betterments if, as might be the case, the tenant is required to pay to replace the improvements and betterments following a loss?

Anytime property can be covered as “building" rather than “business personal property," the insured should seize the opportunity. One reason is that the building rate is lower than the business personal property rate. Another reason to consider this endorsement is coverage limits. If the insured considers and includes some property under the building limits, yet the insurance carrier considers such property business personal property at the time of the loss, a coinsurance penalty is possible.

“Fixtures" is another type of property that could be considered either real or personal property. Both the building and business personal property lists of covered property include fixtures.

To activate the CP 14 15 - Additional Building Property endorsement, the insured lists the building number, the premises number, and describes the property to be defined as “building." The endorsement states that the property listed in the schedule is considered part of the “building" coverage and is no longer considered “business personal property."

Most insureds have property that could be considered either real or personal property; use this endorsement to remove any question or debate that may arise following a loss.

CP 15 20 – Business Income Premium Adjustment

Businesses exist for one reason, to make money. When there is no money, there is no business – at least not for long. Insuring the building and contents is only one part of the property coverage equation. The insured's largest and most valuable asset/exposure is its revenue stream – its business income.

Of all the property coverages available, business income is the most important, and sometimes (well, most times) the hardest limit to develop. Articles, white papers and books have been written on business income, but the difficulty in developing the proper coverage limits remains.

One way to assure that proper business income limits are provided is the CP 15 20 – Business Income Premium Adjustment endorsement. Attaching this endorsement essentially makes the business income coverage form an annual reporting form.

The initial premium is based on the business income limit developed at the beginning of the policy period (derived from the CP 15 15). At the end of the policy period, the business income limit is recalculated and the final premium is developed.

Within 120 days following the end of the policy period, the insured submits a revised business income report (CP 15 15) showing actual figures for the just-expired policy period. If the reported business income limit is higher than the initial estimate, the insurance carrier bills for the additional premium. If the reported BI is lower than the initial estimate, the insured receives a return premium.

The endorsement states that the insured shall never be paid more than the policy limit. Although this is a reporting-type form, the insured must still have adequate policy limits in place at the time of the loss to cover the income lost during the entire period of restoration, and to avoid a coinsurance penalty. There is also a penalty assessed if a report has not been turned in to the carrier as prescribed in the policy; its calculation is similar to a coinsurance calculation.

Unpredictability in year-to-year business income exposures make this a valuable endorsement. Any insured using this endorsement should estimate high (paying an initially higher premium) then take advantage of the reporting procedure to adjust the premium to the actual exposure. The insured should be fully covered following a worst-case-scenario loss, yet always end the year paying the exactly correct premium because of the reporting procedure.

Note, this endorsement option cannot be coupled with the Agreed Value non-coinsurance option; nor can this be used with two of the dependent property endorsements: 1) the Business Income From Dependent Properties – Broad Form (CP 15 08); or 2) the Business Income From Dependent Properties – Limited Form (CP 15 09).

CP 19 10 – Your Business Personal Property – Separation of Coverage

Request this endorsement from the underwriter and wait for the reaction. This may be the rarest and least-used property endorsement of the four presented in this article, maybe even of all property endorsements proffered by ISO. Admittedly, I had never heard of it.

A truly unusual endorsement, the CP 19 10 allows the insured to manage specific business personal property (BPP) exposures by removing the property scheduled in the endorsement from the list of covered BPP in the underlying form. The insured is able to make three key choices regarding the property scheduled in this endorsement, they pick:

  • The limit of coverage for the specified property;
  • The cause of loss form applicable to the scheduled property; and
  • The coinsurance percentage applicable to the scheduled property.

Property specifically scheduled on this endorsement is not included in the limits applicable to BPP in the underlying form; nor is the value of the scheduled property used in the BPP coinsurance calculation following a loss. As noted, the property listed in this form is subject to a separate coinsurance calculation.

According to ISO rules, this endorsement can be used to separately schedule:

  • Contents except stock;
  • Machinery and equipment;
  • Fixtures, improvements and alterations making up part of the building and owned by the insured as unit-owners (as covered in Form CP 00 18); and
  • Tenants Improvements and Betterments.

When this endorsement is used to extend coverage to tenant's improvements and betterments (TIBs), the insured garners the benefit of the building rate rather than the BPP rate for this property. The CPP specifically lists TIBs as business personal property subjecting the TIBs to the higher BPP rate. However, ISO rules related to TIBs specifically state that TIBs written as a separate item are charged the building rate. Wrapping Up In the right situation these are beneficial endorsements. Make use of them where appropriate and provide better protection, better conditions and, at times, better pricing for the insured.

Last Updated: August 17, 2018

Service Line Coverage: Coverage Limits for Sewer, Water, and Electrical Lines

commercial insurance coverage for underground pipes

What is Service Line Coverage?

Service line coverage refers to an insurance policy that covers repairing or replacing the underground pipes and utility lines that connect a home to the public utility systems. These pipes and lines — also known as service lines — deliver essential services such as water, gas, and electricity to the home.

Without this coverage, you could be responsible for repairing or replacing your utility lines. Adding this coverage can offer financial protection for unexpected and potentially expensive repairs. As such, it’s essential if you want to protect your property and budget from unforeseen expenses related to your home’s utility systems.

Table of Contents

Protecting your home beyond the structure .

When you buy a home, you usually consider most expenses, from mortgage payments to property taxes, maintenance, and repairs. One expense you may not consider is the service lines that connect utilities to your home. Damage or failure to these lines can result in costly repairs that can quickly add up.

Depending on the service line you need to be repaired or replaced, you could look at costs from $1,000 to $10,000 or more. Surprisingly to most homeowners, these damages are not usually covered by standard homeowner’s insurance . 

How Does Service Line Coverage Work? 

Service line coverage works as a separate insurance policy that covers repairs or replacements to the underground pipes and utility lines that connect a home to public utility systems. This coverage is typically not included in a standard homeowners insurance policy.

When damage or failure occurs to a service line, and you have coverage, you can file a claim with your insurance company to cover the cost of repairs or replacements. This coverage can include costs associated with excavation, repair, or replacement of the damaged line and even landscaping or restoration of the property after the repair. Unlike a standard home insurance policy — which typically covers damage to the actual structure of your home — service line coverage specifically addresses the utility lines that serve your property.

What’s Included in Service Line Coverage? 

Service line coverage typically covers damage and failures to underground utility lines that connect a home to public utility systems. This critical coverage helps pay for the cost of repairs for:

  • Water line breaks or leaks : If a water line leading to the home ruptures, it can cause water damage to the property.
  • Sewer line backups : If a sewer line leading to the home becomes blocked, it can result in sewage backup and damage to the property.
  • Gas line leaks : If a gas line leading to the home develops a leak, it can result in a gas leak and potential fire hazard.
  • Power line failures : If a power line leading to the home fails, it can cause a power outage or electrical damage to the property.

Types of Service Lines Included in Service Line Coverage 

This insurance typically covers the underground utility lines that connect a home to public utility systems. The specific types of lines covered may vary by policy but can include the following:

  • Communications lines

This coverage may also include associated piping, valves, and other equipment necessary for the functioning of these systems.

What’s Not Included in Service Line Coverage? 

This insurance typically does not cover the following:

  • Damage or failures caused by natural disasters
  • Intentional acts
  • Normal wear and tear
  • Damage to the physical structure of the home
  • Personal property

Additionally, some policies may have specific exclusions for particular service lines, such as oil or propane lines. These exclusions are in place to limit the insurer’s liability and prevent fraudulent claims.

How Much Does Service Line Coverage Cost? 

How much you pay for coverage will depend on several factors, including your home’s location, age and condition of the service lines, and coverage limits and deductibles chosen when you purchased the policy. As an estimate, you can expect to pay between $50 to $200 per year.

Coverage limits vary by policy but range from $10,000 to $25,000 or more. Deductibles typically range from $250 to $1,000 or more. You will want to determine how long your service lines are and which part you are responsible for versus your town or city. Remember to read your policy carefully to know what is covered and excluded. 

Should You Get Service Line Coverage? 

Whether or not to get protection against service line failures depends on individual circumstances and risks. Homeowners with older homes or properties in areas with extreme weather conditions or high risk for utility line damage may benefit from this coverage. Reviewing policy details and comparing costs and coverage options is essential to make an informed decision.

Consider Service Line Coverage If… 

When considering insurance for service pipe incidents, you should first evaluate the age and condition of their home and service lines. Older homes and properties located in areas with extreme weather conditions are at a higher risk for damage. You should also consider your budget and weigh the potential cost of repairs if you do not have a policy.

You could still benefit from coverage even if you do not live in a high-risk area. If you cannot afford unexpected service line repairs or replacements and want to ensure you have full coverage for all utility lines, you may want to consider getting a policy.

This insurance provides several advantages, including:

  • Protection against unexpected repair costs : It can help cover the cost of repairs or replacements for damaged or failed utility lines, preventing you from spending your own cash.
  • Multiple service lines included:  It can provide coverage for all utility lines, including water, sewer, gas, electric, and communications lines, which can make you feel well protected. 
  • Reduced stress for you : Knowing that service line damage or failure is covered can provide comfort, reducing stress and worry about unexpected repair costs.

While this policy can provide valuable protection for your home, there are also some drawbacks to consider, including:

  • Limited coverage:  It may have limits on coverage amounts and specific exclusions that may not cover all types of service line damage.
  • Cost : It can add an additional cost to your insurance premiums, which may not be affordable for some. Also, if you never use it, you may feel like you spend that money for nothing.
  • Overlap with other coverage : You may already have coverage for service lines through a home warranty or utility company, which can create overlap and cause unnecessary expenses.

How to Get Service Line Coverage 

If you want to get coverage for underground service lines, you can follow these steps:

  • Contact your insurance company.  You can contact your insurance company to inquire about adding this coverage to your policy.
  • Compare policy options.  You should compare policy options from multiple insurance companies to find the best coverage at the most affordable price.
  • Review policy details.  It’s important to carefully review policy details to understand coverage amounts, limits, deductibles, and exclusions.
  • Purchase coverage.  You can usually add this coverage to your homeowner’s insurance policy via an endorsement, for additional premium .

How to Make a Service Line Coverage Claim 

To file a claim, you can follow these steps:

  • Contact your insurance company.  You should contact your insurance company as soon as you discover damage or failure to a service line on your property.
  • Document the damage.  It’s important to document the damage to the service line and any resulting damage to the property, such as water damage or structural damage. Take photos, keep copies of estimates, and write everything down. Provide all of this to the insurer. 
  • Wait for approval.  The insurance company will review the claim and either approve or deny coverage based on policy details and the extent of the damage.
  • Begin repairs.  If the claim is approved, you can begin repairs with the insurance company’s help; they may provide recommendations for contractors they prefer.

Putting it All Together 

In conclusion, service line coverage is a type of insurance that covers repairs or replacement costs for service lines that are damaged or fail on your property. Covered service lines include water lines, sewer lines, and electrical lines. 

This coverage can help you protect yourself from expensive repairs or replacement costs not covered by your standard homeowners insurance policy. It can also provide peace of mind and protection against unexpected expenses. Contact your insurance company today to discuss your service line coverage options.

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Is It Covered? Frozen Pipes.

This “Is It Covered?” column will examine two real-life claims from the Dakotas involving frozen pipes – one personal lines and the other commercial lines. Both are good examples of how policy language usually governs, even if the result defies logic and reason.

In the first case, the water line and pump to a North Dakota residential outdoor hot tub froze and were damaged. The hot tub had been used for several years without incident until a particularly nasty, record-setting cold spell came along and this outdoor plumbing succumbed. The adjuster cited a freezing exclusion in the homeowners’ ISO HO 00 03 05 11 homeowners policy [emphasis added]:

We do not insure, however, for loss…. c. Caused by: (1) Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain all systems and appliances of water. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment;

Note that the exclusion does not apply if either of two conditions are met. Condition (b) clearly does not apply since the water supply was not shut off and the affected system and appliance were not drained of water. However, condition (a) was met because the homeowners had maintained heat in the dwelling. “What?!” you say.

As you might logically expect, when confronted with this form language, the adjuster’s response was incredulous since whether or not the dwelling was heated had nothing to do with whether or not the loss would occur when exterior plumbing systems were involved.

Most likely the intent of the insurer with the “Maintain heat in the building” exception was for it to apply only to plumbing systems within the building. However, no such condition or limitation was expressed in the policy language. In addition, there was no mention of outdoor plumbing under the Property Not Covered section of the policy. The only reference to “outdoor equipment” was with regard to loss valuation where coverage was limited to the lesser of actual cash value or the cost to repair or replace.

To his credit, the adjuster reversed his denial and the claim was paid. So, what is the solution for unintended coverage consequences with regard to such policy language? Answer: You revise the form language to clearly and unambiguously reflect the coverage intent and refile the policy form with state regulators.

In the second claim, a South Dakota commercial lines insured had an artesian well that was the primary source of heating for all of his buildings on the premises. Water, far warmer than the air temperature on a January night, was pumped underground to radiator systems in the buildings. During one particularly frigid extended period, the underground pipes froze and burst.

The adjuster denied the claim for damage to the pipes. The basis for the denial did not involve a freezing exclusion since essentially the same language as the hot tub claim above arguably allowed for coverage. The exclusionary policy language in the ISO CP 00 10 10 12 cited by the adjuster was:

Property Not Covered Covered Property does not include: m. Underground pipes, flues or drains;

Clearly the policy does not cover damage to underground pipes. Given the possible exception to the freezing exclusion, the adjuster pointed out to the insured that, if the pipes were above ground, there would have been coverage. The insured in this case was as incredulous as the adjuster in the hot tub case. That makes no logical sense because above ground pipes would almost certainly freeze. However, that’s how the language reads.

So, what is the solution for the insured in this case short of placing the piping above ground (which would likely have resulted in the underwriter either declining the account or attaching an exclusionary endorsement similar to the ISO CP 14 20 – Additional Property Not Covered endorsement to the policy to exclude damage to above ground piping)?

In the hot tub case, the solution for the insurer was revise the policy form language for future claims. In this case, the claim could have been resolved at the time the account was written by preventing an uncovered claim. How that could possibly have been accomplished is by recommending the ISO CP 14 10 – Additional Property Coverage endorsement or a similar form.

The ISO form says, “The following is withdrawn from Property Not Covered and added to Covered Property.” Early editions of the form include a list followed by blank space to add items and included in the listing is underground property. More recent editions of the endorsement allow anything listed under Property Not Covered in the CP 00 10 to be shown on the endorsement.

Legendary insurance coverage expert Bob Smith of the Florida Association of Insurance Agents was known to say, “If you can’t argue language, argue logic; if you can’t argue logic, argue language.” As evidenced by these two claims, an argument based on policy language, even if illogical, most often prevails and can work for or against the policyholder. But when you combine language and logic , your coverage interpretation becomes almost unassailable.

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commercial insurance coverage for underground pipes

Written By Bill Wilson

Wilson, CPCU, ARM, AIM is the founder and CEO of InsuranceCommentary.com and the author of the book "When Words Collide: Resolving Insurance Coverage and Claims Disputes." His column, "Is It Covered?", is published in Insurance Journal Magazine.

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Drilling Equipment and Liability Insurance

Directional boring.

If you are a contractor who provides directional boring/drilling (also known as underground boring or horizontal or trenchless directional drilling), you know the importance of proper insurance coverage. It secures your project contract and gives you peace of mind while you are working.

Hometowne Insurance provides directional boring/drilling contractors with thorough equipment and general liability coverage reinforced by swift service and competitive pricing.

The Value of Directional Boring / Drilling Equipment

Directional boring/drilling has proven its worth as a steerable trenchless method for installing underground pipes, conduits and cables.

Evolving steadily during the last 20 years, underground boring has become increasingly popular for both civic and residential projects, as well as for phone, utility and cable companies. In urban areas, it is often less expensive than methods such as microtunneling, jack & bore and open trenching.

Directional boring equipment also contributes to local goodwill because of its minimal environmental impact. It suits different soil conditions and a variety of jobs including road and landscape.

Cities/Villages, homeowners and companies now look to trenchless directional drilling equipment for installing everything from pipes and cables to service connections for buildings and homes. It is particularly ideal for installations that do not require precise grades.

Directional boring/drilling equipment allows contractors to get utilities from one point to another without destroying the ground or any obstacles between the points. It further outperforms traditional trenching by connecting services and utilities in places where excavating is not possible or practical.

Directional Boring / Drilling Equipment Insurance: Why Hometowne?

Hometowne Insurance Services is a full-service insurance agency that serves contractors with specialized knowledge of how insurance works and how you can ensure the best benefits from it.

We have been helping contractors acquire the right insurance since the day we opened. Independently owned like many of our customers, we understand your goal to make the smartest and most efficient use of finances for business operations.

Agent Tim Leverich leads the Hometowne team with a contracting background. This positions us to know what you need to secure a project and be properly covered.

Our leadership in horizontal/trenchless drilling equipment insurance goes beyond dedicated, knowledgeable service. We also offer you timely turnaround: We can often have your certificate of insurance ready in one hour and your surety bond prepared on the same day.

Right Coverage, Right Price, Right Agency

If you need directional boring/drilling equipment insurance or think you’re paying too much for a current policy, we are here to serve you with solutions that keep your work moving. Contact us at (630) 554-4040 to discuss your insurance options for underground boring equipment.

commercial insurance coverage for underground pipes

Three Commercial Property Endorsements Every Client Should Have

Several weeks ago, MyNewMarkets.com posted a two-part series regarding coverage gaps and selling to those gaps. " Gaps That Sell " and " Three Homeowners' Policy Gaps that Sell " detailed the different levels and classifications of coverage gaps, how to plan for those gaps and specific homeowners gaps of which agents need to be aware. This post is the first of a three-part series expounding on the theme of using coverage gaps to sell; but rather than specific coverage gaps, these three posts focus on endorsements to the commercial property, commercial auto and commercial general liability policies every insured should consider or avoid (in the case of the CGL article).

Three key commercial property endorsements are discussed in this first installment, the: 1) Additional Covered Property endorsement (CP 14 10 or state-specific form); 2) Additional Building Property endorsement (CP 14 15); and 3) Joint or Disputed Loss Agreement (CP 12 70). Obviously these are not the only commercial property endorsements valuable to a specific insured, but these are three every insured should consider.

Additional Covered Property Endorsement

The commercial property policy contains a list of "property not covered" within the form itself. Among the list of excluded property exists several property types or real and personal property the insured (and possibly even the agent) may assume is covered by the policy but is not. Examples include building foundations, underground pipes, flues or drains and fencing (this is not a complete list of excluded property, just a sample).

Some excluded property can be added back to the list of "covered property" via the Additional Covered Property endorsement. Two broad versions of the form are available from ISO - based on the state in question:

  • The CP 14 10 . This is essentially a blank form allowing the insured to specifically list the property they wish to remove from the "property not covered" list and include as covered property; and
  • ISO State-specific endorsements . Two examples are N.C. (CP 14 11) and Va. (CP 14 12). In forms such as these, several types of real and personal property are taken from the list of "property not covered" within the unendorsed coverage form and listed on the endorsement. The insured chooses which property it desires to include as "covered property" and indicates that choice by placing an "X" in the box next to that property class.

Any removal of property from the "property not covered" list and its endorsed inclusion on the "covered property" list is, of course, subject to underwriter approval - regardless of which version of the form is used.

Interestingly, some of the real property and costs found on the "property not covered" list is often included when the building's replacement cost is calculated, yet excluded at the time of loss. Foundations and the cost of excavations, grading, filling and backfilling are good examples. These values and costs are excluded, but the building cannot be rebuilt unless these activities are done.

Foundation can be severely damaged by certain causes of a loss (especially fire); the cost to tear up, remove and replace the damaged foundation can be expensive. The unendorsed commercial property policy excludes these costs from coverage. And before the new/replacement foundation can be laid, the land must be graded, possibly even requiring some excavation. These costs, too, are excluded in the unendorsed CPP. Using the Additional Covered Property endorsement to cover just these two otherwise excluded expenses make the endorsement a near must-have for insureds responsible for insuring the building. Just remember to include these values/costs in the building value.

Other key real property normally excluded from coverage which can be added back under these endorsements include: exterior fencing, retaining walls, underground pipes, flues or drains, underground tanks, bulkheads, pilings, piers, wharves, docks, bridges, roadways, walks, patios and other paved surfaces. Some personal property also can be moved to the "covered property" list by use of the Additional Covered Property endorsement including: vehicles or self-propelled machines (including watercraft and aircraft) and animals.

Nearly every insured in need of real property coverage should consider this endorsement to extend the definition of "covered property." Building owners and tenants required to provide building coverage can greatly benefit from this endorsement. Agents should use the list of "property not covered" as a tool to help them manage the client's insurance risk. Combined, the exclusionary list and the endorsement can be used like a checklist to confirm that all the insured's exposures have been discovered and discussed.

Additional Building Property

Is a particular piece of insured property considered "building" or "business personal property?" Unless the intent is made clear up front the answer might be subject to interpretation following a loss. The unique purpose of the Additional Building Property (CP 14 15) endorsement is to specifically cover property that can be considered either real or personal property as " building " to avoid gray areas at the time of loss.

"Permanently installed machinery and equipment" is defined as part of the "building" within the CPP. "Machinery and equipment" is listed also under the definition of "business personal property." The difference is obviously the term "permanently installed." However, what constitutes permanent installation? Does it mean bolted to the floor or wall such that removal would cause damage to the building proper? What about equipment that is bolted to "real property" (making it real property by definition) but can be removed easily leaving no signs of damage after some minor repair?

A few examples might include a pipe organ in a church; semi-permanently installed equipment, chairs and tables bolted to the floor in dental and medical offices; and production machinery simply bolted to a concrete floor to keep it from vibrating out of place. Although not an all-inclusive list, this provides an example of the gray area of "permanently installed."

Another potentially fuzzy loss is loss to real property improvements and betterments made by the tenant in a leased space. The definition of business personal property extends to include the tenant's "use interest" in their improvements and betterments; but what about the value of the improvements and betterments if, as is likely the case, the tenant has to pay to replace the improvements and betterments following a loss?

"Completed additions" are included within the CPP's definition of "building." This term theoretically encompasses improvements and betterments but not explicitly. Better to specifically endorse the policy to include tenant's improvement and betterments as "building" than depend on an interpretation after the loss.

Anytime property can be covered as "building," the insured should take the opportunity. The reason, the rate is lower for building than for business personal property. Another reason to consider this endorsement is coverage limits. If the insured considers and includes some property under the building limits, yet the insurance carrier considers it business personal property when adjusting the loss, there may be a coinsurance penalty. Of course this problem can be fixed by using blanket limits.

To activate coverage in the Additional Building Property (CP 14 15), the insured lists the building number, the premises number and describes the property to be defined as "building." The endorsement states that the property listed in the schedule is considered part of the "building" coverage and is no longer considered "business personal property."

Most insureds have property that could be considered either real or personal property; use this endorsement to remove any question or debate that may arise following a loss.

Joint or Disputed Loss Agreement

Use and discussion of this endorsement is based on the presupposition that the insured has in place equipment breakdown coverage (formerly known as boiler and machinery). Every insured has an equipment breakdown exposure and should buy the protection.

A detailed discussion of equipment breakdown coverage is outside the intended scope of this article; however, it must be noted that equipment breakdown protection fills several cause of loss gaps present in the commercial property policy. Examples include loss to equipment (such as HVAC and telephone equipment) caused by power surge, explosion of steam pipes, boilers, etc and other such loss or damage.

When there is a CPP and a separate equipment breakdown policy in place there is the possibility that one loss can encompass and trigger both coverage forms. With two carriers involved, there is the possibility that any loss payment will be delayed as the carriers attempt to piece together the incident and decide which carrier should pay the bulk of the claim. This is where the Joint or Disputed Loss Agreement comes into play.

The Joint or Disputed Loss Agreement (CP 12 70) simply requires the CPP and equipment breakdown carrier to pay the insured for the disputed loss as soon as the policy provisions are met (filing of a proof of loss, agreement on the insurable amount of damage, etc.) without holding the insured hostage while the carriers debate the amount of each carrier's liability for the loss. The form requires both carriers to pay half of the disagreed upon loss and then arbitrate between themselves after the insured has been indemnified.

Once the insured has been made whole, the insurance carriers continue their arbitration until two out of three arbitrators agree on the split of liability. The insurer found the most liable must reimburse the other carrier the difference between the 50 percent already paid and their actual liability, plus liquidated damages. Liquidated damages are developed by multiplying the highest prime rate in effect on the day the agreement is invoked by 1.5. That percentage rate is applied during the period of arbitration ("period of Liquidated Damages").

For the insured to benefit from the provisions of the Joint or Disputed Loss Agreement, BOTH the CPP and the equipment breakdown policy must contain this provision; either by endorsement or by inclusion in the form. Commercial package policies must generally be endorsed while many equipment breakdown forms include the wording in the policy language. Regardless, both forms must contain this provision. A simple way to avoid the problem is to use a combined commercial property/equipment breakdown policy.

Finishing Up!

The two most important property coverages every insured should purchase may be Business Income and Ordinance or Law protection. Beyond those, these three detailed commercial property endorsements should be considered for every insured.

Commercial auto coverage is the focus of the next installment. Four commercial auto endorsements every insured should consider are detailed in the coming post.

commercial insurance coverage for underground pipes

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commercial insurance coverage for underground pipes

Underground Utility Lines Insurance

Underground service lines coverage.

There are a lot of property risks to keep in mind if you’re a homeowner. But have you thought about the ones that might be lurking under your property? As a homeowner, underground service lines that run from your home to the property line are your responsibility to maintain. It’s easy for an incident, or general wear and tear, to eventually result in some unforeseen expenses.

Underground service lines coverage is typically not included in a standard homeowners policy. Utility companies may offer coverage, but these options can be costly and might only cover one utility line, as opposed to everything running under your property.

Buried pipe near sidewalk

Underground line examples

Some examples of underground service and utility lines include:

  • Water, sewer and drainage pipes
  • Electric, telephone, internet and cable wires
  • Natural gas lines

A lot can happen to utility lines underneath your property. A tree root could grow through a water pipe, causing a leak and higher bills until it is repaired. Freezing pipes, damage from animals, an artificial electric current and even just the repeated weight of vehicles pressing down on the ground can all cause thousands of dollars in damage.

Federal and state excavation laws

If you are considering digging into the ground on your property, put down that shovel. Under federal and state law, all homeowners and contractors are required to notify the appropriate utility companies before doing any excavation work.

Dig Safe System

To help you comply with this legislation, many utility companies have banded together to form the Dig Safe system. By contacting the program, you can fulfill both state and federal requirements for notification during any digging, trenching, blasting, demolishing, boring, backfilling, grading, landscaping and similar projects.

When using the Dig Safe system, you and any hired contractors can avoid damaging underground utilities, and harming equipment or yourself.

Dig Safe Request

You can simply visit www.digsafe.com or call 1-888-DIG-SAFE to request that a service person come to your property and mark the location of underground facilities. When you call, you will be given a permit number as a confirmation of your request. It is wise to contact the program well in advance of when you plan to start the project to allow for ample time for them to come to your residence and mark the utilities.

Root out your risk

Regardless of how the damage may occur, repairs can be costly. Fixing a water lateral is less simple than just repairing the pipe itself. As a homeowner without service line coverage, you may be responsible for expenses related to digging up your driveway, sidewalk or landscaping to reach the line, as well as repairing and replacing everything.

Underground service lines coverage may also cover hotels, meals and other living expenses should you be forced to leave your home while repairs are done. Take the necessary steps to protect your property and your wallet.

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IMAGES

  1. Underground Service Line Insurance

    commercial insurance coverage for underground pipes

  2. FAQ Series: What is underground service line coverage, and do I need it

    commercial insurance coverage for underground pipes

  3. All You Need To Know About Underground Drainage Pipes

    commercial insurance coverage for underground pipes

  4. All You Need To Know About Underground Drainage Pipes

    commercial insurance coverage for underground pipes

  5. Underground Service Line Insurance Coverage

    commercial insurance coverage for underground pipes

  6. Best Pipe To Use For Underground Water Line? Here's What Experts Say

    commercial insurance coverage for underground pipes

VIDEO

  1. Insurance Doesn't Cover Broken Sewers?

  2. Mimosa Insurance Agency, LLC

  3. Explaining Commercial Insurance Coverage

  4. Commercial Insurance Coverage

  5. One Drug-Free #migraine Treatment Becomes the First to Get Commercial Insurance Coverage

  6. SubWAVE™ integration in Mining Supervision System

COMMENTS

  1. Commercial Water Damage

    Commercial property insurance helps protect your owned or rented building and equipment you use to run your business. This policy helps cover claims of water damage due to leaks or burst pipes. If your equipment is damaged, this insurance can help cover the cost of replacing it at the actual cash value (ACV) or repairing it.

  2. Water- and sewer-line insurance for business: Do you need it?

    Water- and sewer-line insurance, sometimes referred to as "water backup coverage" or "water and sewer," helps cover your business property from damage caused by water that backs up from a sewer, drain or sump pump. It's typically added as an endorsement to a business's existing property policy, as water and sewer backups are ...

  3. Water Damage Commercial Property Insurance Coverage

    Commercial Property Insurance and Coverage for Water Damage. ... think mold. Many commercial property policies will cover at minimum bursting pipes. 2. Gradual Leaks: This is when a pipe or hose slowly leaks water. ... appliances, HVAC units, fire sprinkler systems, plumbing both underground, and visible. Many commercial property policies will ...

  4. Commercial

    Nothing can bring a business's operations to a halt faster than the sudden burst of a water pipe. Our insurance claims attorneys want to prepare owners for the next steps after these incidents, including how to file a claim that will allow maximum coverage for water damage to a commercial building.

  5. Three Commercial Property Endorsements Every Client Should Have

    Other key real property normally excluded from coverage which can be added back under these endorsements include: exterior fencing, retaining walls, underground pipes, flues or drains, underground ...

  6. Does Commercial Property Insurance Cover Water Damage?

    Commercial property insurance is designed to cover loss of or damage to the physical property owned by a business. It covers damage caused by: Unfortunately, most commercial property insurance policies do not cover water damage. Floods are covered under a separate policy called flood insurance that generally must be purchased separately.

  7. Commercial Service Line

    HSB's Service Line coverage can be added to a BOP to help close the property coverage gap. It covers multiple types of utility lines and can help pay for breakdowns caused by: Deteriorating lines. Accidents with tools and machinery during excavations. Damage from heavy equipment moving above underground lines. Freezing.

  8. What is Underground Service Line Coverage?

    Underground service lines transport water, waste, heating, cable, internet and more to and from your house. A leak, break, tear, rupture or collapse can easily damage these underground pipes or wires, creating costly repairs and disrupting your daily routine. Adding underground service line coverage to your home insurance can help you cover the ...

  9. Underground pipes, flues, and drains

    Underground pipes, flues, and drains may not be covered under a standard commercial property policy. Some coverage does include underground pipes if the damage is caused by a covered peril, such as frozen pipes. Coverage for underground pipes, flues, and drains may be purchased as an extension or add-on from some insurers.

  10. Service Line Coverage

    Helps pay to fix damaged underground service lines; Insure sewer pipes, water lines and power lines; Start a Quote Continue Previous ... Sewer line insurance can cover repairs for these types of extreme weather conditions. Corrosion and Rust. Over time, iron and steel-based sewer lines can oxidize and corrode. ... Over 90 years in business ...

  11. Underground Property

    Bill Wilson. Founder at InsuranceCommentary.com. One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big "I" Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America. Reprint Request Information.

  12. Virtual University

    One property coverage option available in NC and VA not available in the CP 14 10 relates to underground pipes, flues are drains. Insureds in both states can choose between coverage for underground pipes, flues or drains (this coverage is also available in the CP 14 10), or insureds can opt to cover underground pipes, including underground ...

  13. What is Service Line Coverage? Coverage For Utility Repairs

    Service line coverage refers to an insurance policy that covers repairing or replacing the underground pipes and utility lines that connect a home to the public utility systems. These pipes and lines — also known as service lines — deliver essential services such as water, gas, and electricity to the home. Without this coverage, you could ...

  14. Service Line Coverage: Get an Insurance Quote

    Service line coverage offers up to $10,000 per occurrence for damage to your exterior underground service lines, including: Power lines that provide electrical service to the dwelling or other structure. Service line coverage only costs a few dollars per month and covers lodging and other living expenses if your home becomes uninhabitable.

  15. What Is Insurance for Sewer Lines?

    Not usually. While insurance may help cover damage to your property caused by tree roots, it generally won't cover costs associated specifically with the sewer lines. For example, if water released from the cracked line causes damage to your property, your insurance may cover the cost to repair damage caused by the water but not to repair the pipe.

  16. Service Line Coverage: What is it and who needs it?

    Wiring or piping to outdoor property, including light fixtures, electric fencing, sprinklers, and swimming pools. Underground storm drainpipes or systems used to direct water away from the home. Costs to clean up or remove pollutants, hazardous waste, or sewage. What is service line coverage?

  17. underground property damage

    An underground property damage exclusion would remove coverage for this class of property caused by and occurring during the use of mechanical equipment during construction operations such as grading land, paving, excavating, drilling, burrowing, filling, backfilling, or pile driving. Underground property damage is used in insurance to refer to ...

  18. Is It Covered? Frozen Pipes.

    Covered Property does not include: m. Underground pipes, flues or drains; Clearly the policy does not cover damage to underground pipes. Given the possible exception to the freezing exclusion, the ...

  19. Drilling Equipment and Liability Insurance

    Right Coverage, Right Price, Right Agency. If you need directional boring/drilling equipment insurance or think you're paying too much for a current policy, we are here to serve you with solutions that keep your work moving. Contact us at (630) 554-4040 to discuss your insurance options for underground boring equipment.

  20. propertycasualty360.com

    Don't miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now! Unlimited access to PropertyCasualty360.com - your ...

  21. Three Commercial Property Endorsements Every Client Should Have

    Several weeks ago, MyNewMarkets.com posted a two-part series regarding coverage gaps and selling to those gaps. "Gaps That Sell" and "Three Homeowners' Policy Gaps that Sell" detailed the different levels and classifications of coverage gaps, how to plan for those gaps and specific homeowners gaps of which agents need to be aware.This post is the first of a three-part series expounding on the ...

  22. Damage to underground pipes

    What we look at. Common types of damage to underground pipes we see are: displaced or open joints. tree or plant roots in the pipe. blockage or obstruction. cracked or fractured pipework. blistered or delaminated pipework (pitch-fibre pipes only) collapsed pipework. misshapen pipes (also called 'bellied')

  23. Underground Utility Lines Insurance

    Underground line examples. Some examples of underground service and utility lines include: Water, sewer and drainage pipes. Electric, telephone, internet and cable wires. Natural gas lines. A lot can happen to utility lines underneath your property. A tree root could grow through a water pipe, causing a leak and higher bills until it is repaired.

  24. Utility Line Coverage

    A limit of $20,000 is available, subject to a $1000 deductible per occurrence. To learn more about Utility Line coverage, contact your independent insurance agent. Central's Utility Line Coverage endorsement provides coverage for the underground pipes, power lines, or electrical wiring you are legally responsible for due to a covered loss.