Service Line Coverage Now Available
By Sherry Taylor, Manager of Product Development and Support
WRC recently introduced a set of new endorsements, Residential Underground Service Line Coverage. These optional endorsements were developed in response to a number of requests for this type of coverage, which is not readily available to client companies in the open market.
Service Line Coverage provides protection against damage or repairs due to the failure of underground piping or wiring that provides a conduit for residential services such as cable, data, drainage, electrical power, heating or water.
Coverage is provided on a defined peril basis for underground service lines (with some exceptions) and Additional Living Costs and Loss Of Rents. Additionally, a number of Coverage Extensions are included for covered losses. Refer to the specific endorsement(s) for details.
Coverage is available for residential lines only, including rentals. It does not apply to lines that solely service appurtenant structures, farm buildings/structures, or other buildings.
Two endorsements per program are available. One has a limit of $10,000 per occurrence and one a limit of $15,000 per occurrence. Both have a limit drop-down provision to a $3,500 limit for service lines 50 years or older. A $500 deductible applies. The limits may not be increased.
Normally, this coverage would be part of an agreement to write Equipment Breakdown, but the WRC- developed endorsements may be used on policies on a standalone basis. They are compatible with all current AAIS programs (Homeowners, Farmowners, Dwelling Fire and Farm Fire) and Iowa property forms (ER) and are available at the discretion of each company. Additionally, any losses under this coverage would be adjusted by the company and any payments would be the company’s responsibility, but count toward the property reinsurance aggregate.