AP Blog

By Cathy Knopf, 09/29/2020
The 2020 monthly webinars focus on best practice approaches, regulatory updates, operational and risk management techniques to help senior living communities better care for their residents and staff while protecting their business. We invite you to join our specialists at these upcoming exclusive...
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By Jason Wissmiller, 09/28/2020
Following the September 11, 2001 terrorist attacks, most insurers who had been offering coverage for War Risk exposures (which typically includes terrorism) quickly canceled those endorsements, per the coverage cancellation terms noted on the endorsements. The market for terrorism related coverage dried up almost...
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By Brian Lindahl, 09/24/2020
As senior living providers prepare for approaching renewal periods, we wanted to provide an update on our view of the changing marketplace. This will aid you and your team in determining your risk tolerance appetite and preparing your budgets for potential increased costs and decreased coverage. Unfortunately,...
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By Jim Stevenson, 09/23/2020
Does employment status really matter? The Internal Revenue Service says “yes” but the Service Contract Act says “no” when the Department of Labor enforces The Act. The Internal Revenue Service says employee status is important because it determines if the federal service contractor must...
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By Gina Ekstam, 09/22/2020
Proactive loss control is an effective approach to helping agribusinesses reduce risk, improve product quality, increase production, and boost employee morale and retention. Loss control requires top-down commitment, from management to safety directors to employees. To be successful, there needs to be a culture...
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By John Tankersley, 09/21/2020
When it comes to insuring your manufactured / mobile home, the rules are different than a standard homeowner’s policy. Most people think when it comes to insuring one’s home that it’s all pretty much the same – call your local agent, give your address and some basic information about the...
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By Nathanael Alexander, Esq., 09/17/2020
Updating a previous article, as of Friday, September 11, 2020 the U.S. Department of Labor (DOL) has indeed decided to move forward with issuing revised regulations under the Families First Coronavirus Response Act (FFCRA) after a New York federal district court struck down several of the previous provisions of...
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By David Stein, 09/16/2020
The current economic climate is forcing producers and service contractors to take a hard look at insurance costs. Usually, the first (and easiest) step is to engage their broker to market the insurance program with alternate carriers. Competition will either drive down costs or validate the current placement....
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By Brian Lindahl, 09/15/2020
As an insurance and risk management partner to hundreds of assisted living communities across the country, we would like to extend an extra special “Thank You” to our assisted living clients for providing essential care and services to those in need. In appreciation of all that you and your team...
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By Rocky Roemer, 09/14/2020
Commercial automobile insurance as a segment of the insurance industry has been consistently unprofitable for around a decade. It’s a triple-whammy: Increasing frequency - due in part to distracted driving Higher loss costs (driven up by increased prices and complexity of the vehicles themselves) ...
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Service Line Coverage – What Is It and Why Do You Need It?
06/24/2020

Did you know that you are responsible for the maintenance of utility or service lines that extend from your home to your property line?  You may suddenly experience a drop in water pressure, or an unusually high water bill, and then discover that the water pipe under your front lawn has cracked. Your lawn must be excavated, and you may need to live elsewhere while the pipe is replaced. Your lawn, walkway and/or landscaping will need to be restored. Unfortunately, the typical homeowners policy does NOT cover damage to service lines.

Older homes were often built with service pipes made of clay or cast iron that can deteriorate over time. Recently, some insurance carriers have begun to offer Service Line Coverage Endorsements to their Homeowners policies to address this potential gap in protection. These endorsements offer a small amount of coverage (often $10,000-$25,000) for a very reasonable annual premium (usually under $50).

Types of service lines typically covered may include:

  • Water, sewer and/or gas lines
  • Power or electrical lines
  • Telephone, fiber optics and/or cable lines

Causes of loss may include:

  • Wear and tear, rust or corrosion
  • Tree roots, fallen trees or weight of heavy equipment
  • Rodent or insect damage

However, these endorsements typically exclude coverage for certain lines associated with septic systems, sump pumps, fuel tanks, water wells and heating/cooling systems. In addition, Service Line Coverage may not be currently available from all carriers in all states at this time. As an alternative, you may be able to purchase a stand-alone utility line protection policy from a specialty insurance company, or individual line coverage from the utility provider. There are also home warranty policies that may include service line coverage, but these tend to be expensive. Whichever you choose, be aware that each contract may differ in per occurrence coverage limits, deductibles, service fees, waiting periods and pre-existing condition exclusions, not to mention causes of loss and types of repairs that are covered.

Expanding your homeowners coverage to include Service Line Coverage may help to pay for costs such as excavation, piping or wiring repairs or replacement, landscaping repairs and possibly additional living expenses. Some contracts may also provide for eco-friendly or energy-efficient upgrades, or liability coverage.  It is important to note that Service Line Coverage is not the same as water back-up of sewers or drains endorsements—the latter endorsements deal with damage inside the home, not outside.

Since service line repairs can cost up to $10,000 or more, purchasing Service Line Coverage at a reasonable cost, especially for older homes with outdated utility lines, is something to strongly consider. Service line coverage may help to pay for costs and living expenses due to the maintenance or damage of service lines.  To learn more about Service Line Coverage and ensure you are properly covered, visit AssuredPartners Personal Insurance.