There’s Coverage for That: Water and Sewer Lines

Most people do not get excited about insurance. It is something we buy – some of us because we have to, some of us because we feel it is the responsible decision – but insurance is not something we all follow closely, giddily discussing new product offerings with our friends.

However, once in a while, insurance companies will introduce a new coverage that homeowners are excited about and eagerly purchase as soon as it is available. Over the past few years, that coverage has been Water and Sewer Lines coverage (sometimes calls Water Service Line coverage).

What is it?

Water and Sewer Lines coverage provides protection for damage should your water or sewer lines leak, break, rupture or collapse.

What is covered?

Water lines that carry potable water to the home from the municipal water system or a private well, and sewer lines that carry wastewater from the home to the municipal sewer system or private septic system are covered. (Lines connected to swimming pools, ponds or lakes, are not covered.)

Water and Sewer Lines also covers the costs to repair or replace the line, including tear out and excavation costs, and costs to restore lawns, trees, driveways and sidewalks that are impacted.

Coverage is typically limited to $10,000 – $20,000 per occurrence, depending on the policy.

What is not covered?

Some general insurance exclusions apply, such as damage caused by wear and tear, and the cost of making good faulty material or workmanship.

Importantly, there is no coverage for damage caused by settling, expansion, contraction, moving, bulging or cracking, nor for the treatment of hazardous materials.

Damage that results from the disconnection or interruption of the utility line is not covered.

Who should buy this coverage?

Anyone with water and/or sewer lines should consider adding Water and Sewer Lines coverage to their policy.

It may already be included in your policy as part of your water damage coverage package. If you are unsure whether your policy includes Water and Sewer Line coverage, ask your home insurance broker.

How much does it cost?

The premium varies by company, but is usually in the range of $25-$75 per year.

Different insurance companies offer different coverage options and introduce new coverages at different times, but by now, most major insurance companies in Canada offer some version of coverage for water and sewer lines. Ask your home insurance broker for a quote to get this coverage added to your policy!