Should I Buy That Water or Sewer Line Warranty in the Mail?

If you keep getting letters offering to protect the water or sewer line running to your house, don't automatically throw them away, but don't automatically buy the warranty either.

Your standard homeowners policy does not cover the underground service line unless you've added service line coverage. We're seeing sewer line repairs from $10,000 to $20,000, and no one wants to be blindsided by a bill like that.

Before you buy the warranty in the mail, check your homeowners policy. You may already have service line coverage. If you don't, find out what it costs to add. In our experience, adding service line coverage to a homeowners policy is probably going to cost less than buying a separate water or sewer line warranty.

But don't compare price alone. Compare the coverage limit, deductible, covered causes of loss, exclusions, and who pays to put your yard, sidewalk or driveway back together after the repair.

What are those water and sewer line letters actually selling?

Most of these mailers are service contracts from third-party companies. They aren't your homeowners insurance policy, and they're often not from your city. They can pay for qualifying repairs under the terms of their contract.

What does service line coverage do?

Service line coverage is an endorsement you can add to many homeowners policies. It can include the cost to excavate the damaged line, repair or replace it, and restore the property afterward. Depending on the policy, covered service-line failures can include things like tree-root intrusion, freezing, corrosion or other damage to the line.

What should you compare?

Start with the coverage trigger. What actually has to happen before the warranty or endorsement pays? Then look at exclusions, the maximum limit, your deductible or service fee, and restoration coverage. If the line has to be dug up, find out exactly what each option pays to restore the lawn, landscaping, sidewalk or driveway.

Also check waiting periods and contractor requirements. Some service contracts require you to use their contractor network or impose a waiting period before coverage begins.

For homeowners in Michigan and Ohio, we regularly compare these mailer warranties with service line endorsements available through homeowners insurance. The important part isn't the label on the product. It's knowing what each one would actually pay if your line failed.

The bottom line

Before you start sending a company money every month, find out what you already have or can add to your homeowners policy. Then compare the two side by side. If you're looking at a possible $10,000 to $20,000 repair, you want to know exactly what you're buying before the line is already broken.