I get a water line insurance offer at a minimum of once a year.  They tend to come in the mail and look like an “official” notice from your local water company saying something like: “Important Information Regarding Your Water Service Line. Response Requested Within 30 Days.”

Many homeowners open the letter because the outside of the mailer is black and white, barcoded, and serious-looking.  The content of the enclosed letter uses a scare tactic by making statements that say, “your water service line could fail without warning,” causing you financial ruin, or, “damages with your sewer line could cost you thousands of dollars in unforeseen expenses.”

What they really want to ask if for you to pay a low monthly price, but your sewer line could be covered by water line insurance and in essence, you would be paying for additional coverage that you don’t need.

Here’s what you need to know; first of all, the letters are written to induce the fear factor of water line breaks.  Although this is something that could happen, it holds the same likely hood as if a tree were to fall on your house, an airplane crashing into your house or water heater flood your basement.

What does sewer line insurance cover?

Sewer line insurance covers the pipe from where it leaves your foundation to where it ties into the mainline.

The offer states that should the exterior water service line to your property fail, this type of insurance company will pay your claims to repair the line. Be sure to read the fine print, their offers claim to insure the pipe from the foundation’s edge to the property line, however, a  water service line is only the pipe that brings freshwater into the house and does not include pipes that carry away wastewater, which is more likely to cause you trouble than the freshwater pipe.

Admittedly, this could be a very costly expense.

Will homeowner’s insurance cover a water line break?

While insurance companies’ coverage may differ, most policies are all about covering your home, its physical structure, and adjacent properties like garages and sheds.

In addition, most homeowner’s policies do not offer coverage enhancements or endorsements available to add this coverage. It is true that once the line branches off from the city main, it is your responsibility to fix if/when something happens.

If you do not purchase the sewer line insurance you could file the expense if you were ever to need to repair the line under the heading “The cost of home ownership”.

The bottom line is that there is always a potential for this type of thing happening, however rare. That’s the world of insurance. Only you can decide if you wish to pay a little now to avoid paying a lot later.

Like any insurance, it’s a personal call on what you’re willing to risk.