Insurance Question, Water and Sewage Lines

[troutface]

My gf is a realtor, so I hear all about the bad sewer lines that come up on inspection when they send the camera through the line. Happens more often than you think. Typical full replacement starts at $10K-15K. Could you foot the bill without insurance ? Are you planning on moving in the near future? Check with your homeowners insurance to see if they offer it and what premium they charge, then you can decide if it's worth it to you.

 

[warren]

Check with your homeowners insurance to see if they offer it and what premium they charge, then you can decide if it's worth it to you.

Good advice for most everyone who owns a home. An annual reading of your various policies with an eye to what has changed over the past year is also something to keep in mind. Insurance needs change, often times without a thought on our part.

 

[Hillcrest]

What is your take? What is your experience.

We take the insurance offered from the water company on the lines because it covers outside and inside lines. It was originally offered because old lead pipes were failing and were replaced with copper or PVC. Also the state allowed the utility to transfer ownership and maintenance of the water meter pit to the homeowner ... but not access !! Only they have the "key rod" for turning the water on and off at the water meter pit !! (unless you know where to get one or two !! ). Also ... the insurance will replace the lines but will NOT pay for a backhoe guy to dig out the pit which is underground. About 20 years ago that cost around $850.00 ... now probably at least double that. My father who was in his late 70s opted to get a shovel and dug it out himself one day ... its about 5 feet down; saving the 850 when they replaced the meter for free.

We also had tank insurance on the oil tank and one day it sprung pinhole leaks on the bottom. The oil company had to drain it and flip it over and coat the bottom with fiberglass sealant and refill all paid for by the insurance. We also get the oil burner service contract which pays for itself with free parts if they need replacing.

Its really up to you but do read what is covered and what is not covered. Call your homeowners insurance and ask if they cover this ... you may be surprised if they don't. If they do then you don't need it. If you have sufficient savings to outlay 5-10 grand on clean up and replacement then you may not need to worry about it. If you don't its a cheaper alternative. Its right for some and not right for others.
Every year we get a letter from the homeowners insurance explaining what is no longer covered and why the price is going up !! And I live in the insurance capitol of the world !!

Sometimes old stuff breaks down ... (as my doctor says !!! )

 

[woodsroad]

Infrastructure insurance can be a worthwhile expense, but only if you fully understand your exposure and coverage. Imagine paying premiums for years on end, suffer a loss, only to find out you aren’t covered?

I suggest that you talk with your insurance agent/broker about this. They are usually better educated and trained in such matters than us pipe smoking couch jockeys.

 

[Hillcrest]

This is the first I have heard of insurance on these, But, if offered, I’d take it. The water company here is owned by the city, and is why we don’t have a city property tax. However, I am told that everything from the manhole to my house is my responsibility, and our sewer runs under a creek, which is a protected waterway. A neighbor pointed out a few years ago that our sewer line is exposed by erosion. It’s just PVC, and when the creek is roaring, rocks are tumbled down the bed over it. I asked the city what needs to be done, but all I got was that it is my responsibility, BUT its a protected waterway. Officially, I am not allowed to do anything. But, a plumber told me that I should go out when the creek is dry and pour concrete over it, which is technically illegal. The plumber refused to do it. So, I have just haven’t done anything. Buy, I’ve also been told that if the line broke, and sewage spilled into the creek, I am liable for the spill financially for damage to the environment. It’s a Catch22.
I would buy insurance in a heartbeat. I may call and ask of they have anything like insurance available. I just don’t feel like pouring concrete into a creek bead in the dead of night is very smart.

If you are handy and environmentally minded you could put in a natural culvert of large rocks on either side of the pipe so the water cascades then go down stream and get a wheelbarrow of small stones to cover the pipe. You would only be replacing what was originally there and creating trickling water which prevents mosquitos. If you want to get really fancy you could put in a trout pool as well. .... just a thought ... It would actually benefit the stream and it will percolate the water. Frequently they place rocks in streams to percolate the water to prevent mosquitos and such. Inland/wetlands can't really complain as you are improving the waterway naturally.

Culvert - Wikipedia

en.wikipedia.org

 

[pantsBoots]

My local natural gas utility keeps offering me insurance on my water and sewer lines. The cost is modest, ten bucks monthly for water line and fifteen for both water and sewer. My home is 57 years old. They offer to make it part of the gas bill, and their role as a public utility makes it seem like it would be legitimate.

My uncertainty is that I have heard of water and sewage lines needing to be replaced, but as near as I can tell it is rare. Two residences in the family were/are over 100 years old, and neither ever required replacement of these. I have never had a friend, acquaintance, colleague or community member known to me to need this, nor have I read letters to the editor bemoaning this.

Is this insurance a bit like insuring against rhinoceros damage? Is it getting a lot of people to insure against a remote possibility? Or is this a practical and responsible option?

I keep getting mailings encouraging me to sign up for this. What is your take? What is your experience. It also worries me that the natural gas people are offering this. Could it be that they do some of the damage to residential lines in installing or repairing gas lines and are trying to deflect their liability? Am I buying insurance that they should be carrying?

You have the public line (main) and your personal service line (lateral). The main is the utility's responsibility and the lateral is your responsibility. I have designed and permitted miles and miles and miles of both public and private infrastructure. I have also advised clients on utility agreements and sat alongside attorneys who covered the legal end of these systems. Long story short (too late!), they're just seeing if you like to gamble (as with any non-essential insurance).

Look at what they want to charge per month, then call around and get a couple free estimates on replacing the line. How many months of this payment will it take to cover the install cost? Will they let you look at the service contract to see what standards and specs their subcontractors will be held to if they do replace your lateral? How does construction inspection work - does the utility inspect, or do they allow the pipe to be covered with the contractor providing the only means of inspection?

 

[scloyd]

Our local gas company, NICOR, offers water and sewer insurance plans too.

Why is the gas company interested in selling me water and sewer insurance, especially for more money than my homeowners insurance policy for water/sewer repairs? To make money. They're not offering you water/sewer repair insurance because they're nice people and they care about you... it's to make money.

Like I stated earlier, I pay $80 a year for a $10,000 "underground utilities repairs" policy added to my homeowners policy.

I'm retired from an electric utility company (30 years). Utilities are not your friends.

 

[alexishector]

My local natural gas utility keeps offering me insurance on my water and sewer lines. The cost is modest, ten bucks monthly for water line and fifteen for both water and sewer. My home is 57 years old. They offer to make it part of the gas bill, and their role as a public utility makes it seem like it would be legitimate.

My uncertainty is that I have heard of water and sewage lines needing to be replaced, but as near as I can tell it is rare. Two residences in the family were/are over 100 years old, and neither ever required replacement of these. I have never had a friend, acquaintance, colleague or community member known to me to need this, nor have I read letters to the editor bemoaning this.

Is this insurance a bit like insuring against rhinoceros damage? Is it getting a lot of people to insure against a remote possibility? Or is this a practical and responsible option?

I keep getting mailings encouraging me to sign up for this. What is your take? What is your experience. It also worries me that the natural gas people are offering this Drainage Repair Near Seattle. Could it be that they do some of the damage to residential lines in installing or repairing gas lines and are trying to deflect their liability? Am I buying insurance that they should be carrying?

I keep getting these offers from my water utility (American Water) to purchase water and sewer line repairs insurance for $10/month ($15/month after first year). I checked with my home insurer and they don't offer an add-on for this. Is this something people would recommend? I am a first time home owner (1.5 years) so not a lot of experience.

 

[MartyA]

We live in a 110 year old house. We had to replace the water line from the city main up to our house maybe 35 years ago. That was our problem, but not a crushing expense. I figure it should last for the rest of my life, (I'm 74 now,) so I don't bother with insurance.
On the other hand, our sewer line has never had any work done on it, and a considerable amount of it is under the house. If it ever needs work, ( like our neighbor across the street, ) it's gonna be expensive, so we pay for insurance on that.

 

[MartyA]

We live in a 110 year old house. We had to replace the water line from the city main up to our house maybe 35 years ago. That was our problem, but not a crushing expense. I figure it should last for the rest of my life, (I'm 74 now,) so I don't bother with insurance.
On the other hand, our sewer line has never had any work done on it, and a considerable amount of it is under the house. If it ever needs work, ( like our neighbor across the street, ) it's gonna be expensive, so we pay a small amount for private insurance on that.