Is Service Line Coverage Worth It? What New Jersey Homeowners Need to Know
- Adam Overmyer
- Jun 10
- 5 min read
Updated: 6 days ago
If you’re a homeowner in New Jersey, chances are your home is one of your largest financial assets. And while your homeowners insurance may seem comprehensive, many policies don’t cover one of the most common — and expensive — property issues: damage to underground service lines.
At Overmyer Insurance Agency, we help our client understand their homeowners insurance coverage and frequently talk to New Jersey homeowners who are shocked to learn they’re responsible for broken sewer, water, or electric lines that run beneath their yard. This blog breaks down what service line coverage is, what it protects, and whether it’s a smart addition to your homeowners policy.
What Is Service Line Coverage?
Service line coverage is an optional endorsement you can add to your homeowners insurance. It protects you when underground utility lines on your property are damaged, which standard policies typically exclude.
Covered lines often include:
Water and sewer lines
Electrical wiring
Natural gas pipes
Data and communication lines
If a tree root damages your sewer pipe, or a water line corrodes and bursts, service line coverage helps pay for:
Excavation
Pipe or line replacement
Landscaping after the repair
Loss of use if your home becomes temporarily uninhabitable
Overmyer Insurance Agency helps clients across New Jersey add this endorsement with select carriers, ensuring they have protection from costly out-of-pocket surprises.
Why Your Homeowners Insurance Doesn’t Cover This by Default
Most standard home insurance policies only cover your home’s structure and immediate internal systems. That means you’re responsible for anything that happens to buried utility lines on your property, from your house to the curb.
Without service line coverage:
Damage caused by tree roots is not covered
Wear-and-tear issues like corrosion or collapse are excluded
Excavation and landscaping costs are your responsibility
Claims are often denied because service line damage falls under policy exclusions
This is where many New Jersey homeowners — especially those with older homes — face expensive repairs they assumed were covered.
Real Costs of Not Having Coverage
The cost to repair or replace a damaged service line can range from $3,000 to over $10,000, depending on the depth of the line, location, and damage type. Excavating a front yard, removing tree roots, replacing piping, and repairing landscaping all add up quickly.
One of our clients in northern New Jersey faced a $6,800 sewer line repair due to root intrusion. Because they had added service line coverage through Overmyer Insurance Agency, the insurer covered the work after just a $500 deductible.
How Much Does Service Line Coverage Cost?
The good news is that service line coverage is very affordable. Most New Jersey insurance carriers offer this endorsement for $25 to $50 per year, with typical limits of $10,000 to $15,000 in coverage.
Compared to the cost of repairs, it’s one of the most cost-effective coverages you can add to your policy.
At Overmyer Insurance Agency, we regularly review policies for our clients to make sure endorsements like this are in place — especially for homeowners with older homes, mature trees, or clay/terracotta piping.
Common Damage Causes in New Jersey Homes
Service line claims are common in many parts of New Jersey, especially in towns with older housing stock or mature landscaping. Common causes we’ve seen include:
Tree root intrusion into sewer lines
Corrosion of aging copper or steel water lines
Ground shifting or freeze/thaw cycles causing cracks
Damage from renovation or digging projects
New Jersey homes built before 1980 are especially vulnerable, and many homeowners aren’t aware until a problem arises.
Is Service Line Coverage Worth It?
Here’s a simple way to decide:
You should strongly consider service line coverage if:
Your home is more than 20 years old
You have large or mature trees on your property
You live in an area with aging municipal infrastructure
You don’t have thousands set aside for emergency home repairs
If an unexpected underground utility issue would be a financial burden, service line coverage can provide affordable peace of mind.
At Overmyer Insurance Agency, we believe this is one of the most overlooked and valuable endorsements available — especially for New Jersey homeowners who want comprehensive protection.
Why Work with Overmyer Insurance Agency?
National insurance companies and captive agents often leave service line coverage out — or fail to explain why it matters. As an independent insurance agency based in New Jersey, Overmyer Insurance Agency takes the time to review your policy thoroughly and help you understand your real exposures.
We work with top-rated carriers that offer service line endorsements and can make personalized recommendations based on your property, location, and budget.
Ready to learn more or add service line coverage to your homeowners? Click the link below to get in touch with a knowledgeable advisor to find the best coverage fit for your needs:
Final Thoughts: Don't Wait Until It’s a Problem
Service line coverage is one of those things that homeowners often overlook — until there’s a leak in the yard or a backed-up sewer during a holiday weekend.
Let’s avoid that.
Contact Overmyer Insurance Agency today for a quick, no-pressure policy review. We’ll let you know if you already have service line coverage, what your options are, and whether it makes sense to add this low-cost but high-value protection.
Frequently Asked Questions About Service Line Coverage
What is considered a “service line” on my property?
A service line includes underground pipes or wiring that provide essential services to your home, such as water, sewer, gas, electricity, and communication lines. These lines typically run from the street or sidewalk to your house and are your responsibility if damaged.
Does homeowners insurance cover underground utility lines?
Standard homeowners insurance policies do not cover damage to underground service lines. You would need to add a service line endorsement to your policy for that protection. This endorsement can cover excavation, repairs, and even landscaping costs after the line is replaced.
How much does it cost to add service line coverage in New Jersey?
In most cases, service line coverage costs between $25 and $50 per year. This small premium gives you access to $10,000 to $15,000 in protection, depending on the insurer. It’s one of the most affordable upgrades to a standard homeowners policy.
What are the most common causes of service line damage?
In New Jersey, common causes include:
Tree root intrusion
Ground shifting or freeze-thaw cycles
Corrosion in older pipes
Accidental digging during renovations
Pipe collapse from age or soil pressure
Is service line coverage worth it for a newer home?
While newer homes are less likely to have immediate issues, service line coverage is still worth considering — especially if the home has large trees, clay soil, or is located in an older neighborhood with aging infrastructure. It also helps prevent large, unexpected repair bills down the road.
How do I know if I already have service line coverage?
Review your homeowners policy declarations page or speak with your insurance advisor. If you work with Overmyer Insurance Agency, we’ll check your current policy for this endorsement and let you know whether it’s included — and what your options are if it’s not.
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