Does Homeowners Insurance Cover Sewer Lines?

When it comes to your sewer line, there are not many things your homeowners insurance will actually cover. If the part of the line that is on your property is damaged by something sudden and unexpected, it's usually covered. If there is a sewage backup or the damage is due to a chronic issue, you will likely have to pay out of pocket to repair or replace the line.

When does homeowners insurance cover your sewer line?

Technically, the part of your sewer line that is on your property is considered an "other structure" of your home, meaning it's provided the same protections as your home proper.

For example, if an explosion in your yard damages the sewer line, the damage would be covered by your homeowners insurance policy, subject to your deductible. The source of the damage needs to come from something outside of your control. The part of the pipe that is damaged will also have to be on your premises. If the pipe is damaged outside of your property line, it will be up to whatever entity that owns the damaged part to fix it. Unfortunately, most common ways sewer lines are damaged are through preventable, thus uninsurable, means.

How much does insurance cover for your sewer line?

If you are covered, most standard home insurance policies limit coverage for "other structures" to 10% of what your full home is insured for. For example, if your home is insured for $600,000, "other structures," like your shed, fence and septic tank, may only be covered up to $60,000. We recommend you scan your individual policy to be sure that is the case, as it may vary. The 10% should be enough to cover the costs. Data from CostHelper.com suggests the typical replacement cost for a sewer line is around $3,000 to $6,000.

When is your sewer line not covered by insurance?

When the sewer line backs up into your home or is physically damaged from preventable means, insurance will not pay for its repair or replacement.

Physical damage to the pipe

In all cases in which the physical damage to the pipe can be blamed on poor upkeep, faulty construction or preventable error, your homeowners insurance company will not foot the bill for the repairs. Additionally, there are several calamities your insurer will not cover under a standard policy. Some examples include damage from earthquakes, floods, pests and tree roots. For earthquakes and floods, you will need separate insurance policies.

Sewage backup

Every homeowners insurance policy explicitly states that any damage caused by a sewage backup will not be covered. Whatever the water or raw sewage destroys will not be qualified for replacement from the insurance company. Unfortunately, many causes of sewage backup can stem from physical damage to the pipe — potentially leaving a very costly bill to replace the pipe and repair whatever was destroyed in the home.

Sewage backup endorsement

Most homeowners insurance companies offer an endorsement that you can add to your standard policy that will cover damage associated with sewage backup (but not physical damage). According to the Insurance Information Institute, the endorsement usually costs an extra $40 to $50 per year and gets you an extra $10,000 of coverage should your sewer back up. Unfortunately, the $10,000 will likely not be enough to cover a massive sewage backup. In the case of this Oregon homeowner, a sewage backup destroyed his entire home, costing him over $300,000. The best thing we recommend is to prevent a sewage line backup in the first place.

Service line protection endorsement

If you're looking for broader coverage than the standard homeowners insurance policy provides for sewer lines, you'll have to purchase a service line protection endorsement. Unfortunately, not many insurance companies offer this endorsement, so you may need to switch insurers to get it. Below, we list the companies with the best service line protection endorsements.

Erie: Best service line endorsement

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Why it's great

You want an insurance company that provides a high coverage limit for service lines.

Erie offers a service line endorsement, and the company is one of the country's best-reviewed and -rated home insurers. Erie allows its policyholders to select between coverage limits of $10,000 and $25,000. Erie's service line endorsement provides coverage for the following service lines:

Mercury: Runner-up for best service line endorsement

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Why it's great

You're looking for basic coverage for a sewer line.

Mercury's service line endorsement doesn't have the coverage limit options that Erie provides to its policyholders. However, Mercury reimburses customers for their lodging expenses if they have to live away from home due to service line damage. For example, if your sewer pipe is malfunctioning, Mercury would reimburse you for the cost of a hotel while the problem is fixed, potentially saving you hundreds of dollars.

How to take care of your sewer line

Most sewer line issues are a result of human error and poor maintenance. There are numerous habits you should adopt as a homeowner to ensure your sewer does not back up at some point. Some of those habits include:

The most common cause of sewage backup is clogging that results from flushing objects that should not be flushed. Cooking oils are particularly bad because they can clump together in the pipes and clog them. Paper towels are also damaging to flush down because of how easily they can aggregate in a pipe.

Replacing your metal pipe with a plastic pipe (if you can afford it) will help reduce the risk of tree roots creeping into the pipe and damaging it. Lastly, getting the plumbing in your home inspected just once will alert you to any major dysfunctions of the system. Perhaps the pipe has corroded or the valves are faulty — these are things that can cause costly damage but will be a lot cheaper to fix before they become major issues.