Have you ever received a piece of mail that said “Important information” on the envelope and warned you that your water service line could fail at any moment, costing you thousands of dollars?

What you likely have is a direct mail advertisement for water line insurance. Even though it looks serious and official, it is not from your water utility company – but rather a private company trying to sell you insurance.

But the big question is, should you look into or even buy the water line insurance? Are you putting yourself at financial risk by not having the policy? Let Emergency Plumbing & Solar to explain this in detail.

What is water line insurance?

Sometimes called exterior water service line coverage, water line insurance is an optional insurance policy that it is intended to pay for costs if the water service line on your property breaks or needs repairs. The water service line is the pipe that brings fresh water from the municipal water main. Water line insurance is offered by companies for a monthly or annual premium. 

What this insurance does not cover is the cost to repair the sewage line on your property. This is the pipe that is actually more likely to get clogged, blocked by a tree root, and end up costing you a lot of money. In fact, it’s rare for your water service line to burst because it’s buried below the frost line and deep enough that it’s unlikely to get accidentally punctured.

Water line insurance versus homeowners insurance?

Before you write a check for an additional insurance policy, be sure to inspect the coverage of your existing   insurance. We can’t say for sure whether a water service line issue would be covered by your policy, only that it’s worth taking the short time to inquire about it. What you shouldn’t do is take the word of the water line insurance company that your regular homeowner’s insurance is insufficient.

Limitations of water line insurance

If you still feel that water line insurance is a good investment, we recommend that you thoroughly review the policy and all the conditions. One popular water line insurance may limit the maximum amount it will cover per occurrence – meaning you may still have to pay money out of pocket for a repair. You may also be required to use a company-approved contractor instead of the local plumbing company you know and trust.

Conclusion

So, is this worth it? In our opinion? No. The letter you received may sound scary but the reality is that your water service line is not an area of your plumbing system that is likely to break and cost you money. 

If you want to protect yourself from unexpected expenses, you may be better off saving that money you’d spend on water line insurance and put it in an emergency fund for issues that are much more likely to pop up, like your water heater dying, a clogged drain, or your sewer line backing up.