Did you know that as a homeowner you own the main water pipe and sewer pipe from your home to the street? You are responsible for the repair and any damage caused from clogs or breaks in the lines, which can occur for many reasons.
I honestly never paid any attention to this issue until a client actually had sewer pipe issues that resulted in a large remediation prior to closing. Luckily, my clients DID have the sewer pipe insurance (which actually surprised me) and thank heavens they did, as the contractor had to rip up the driveway to access the pipe needing replacement.
Breaks or blockage can occur from:
Invading tree roots
Temperature fluctuations causing ground shifting
Build-up of grease, debris, hair and oil
Wear and tear from aging
Poor pipe layout and design
Damage to your home, lawn, landscaping, and driveway can result in thousands of dollars in repairs that you are responsible for. Many companies offer water and sewer line insurance which can be helpful in offsetting some of the costs that can occur.
Is it worth the money? It can be when you have to repair or reroute a line causing landscape, driveway, or sidewalk damage. First, you need to consider your risk. If you live in an older home, have trees on your property that grow near your pipes or are aware of neighbors having pipe problems, then the additional insurance may be something you should consider.
Before purchasing a new policy, you should check your homeowner’s policy to see if the water and sewer lines are already covered. Most policies do not cover water and sewer line repairs but you don’t know until you check. You may even be able to purchase an additional rider to add to your policy.
If you choose to buy water and sewer line insurance, always read the fine print! Find out exactly what the policy covers and doesn’t cover (exclusions) and the maximum payout limits. If you decide against buying a policy, you may want to consider setting up an emergency fund to “self-insure” yourself. It never hurts to set aside some funds to cover unexpected issues that, at some point, affect all homeowners.
As with most types of insurance, you really have to make a decision about water and sewer line insurance, after considering your risk, cost and benefit. Always fully understand exactly what you are getting.
Do your homework and the next time you receive that 'junk mail' about sewer line insurance, you might want to think twice before tossing it into the garbage!
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