A recent survey conducted by Nationwide reveals that many homeowners are unaware of the potential financial burden they may face when it comes to service line damage. Contrary to popular belief, utility companies are not always responsible for the repair of service lines that run into homes. This means that homeowners may be left to foot the bill for repairs if these lines are damaged or break.
According to the survey, 32% of homeowners mistakenly believe that service line coverage is included in their standard home insurance policy. However, this coverage is not automatically provided unless it has been specifically added. Shockingly, only 8% of Nationwide home insurance policies have added this coverage, leaving the majority of homeowners vulnerable to potential costly repairs.
The average cost to fix a service line to a home ranges from $3,000 to $7,000, making it a significant expense for homeowners who are not adequately covered. This highlights the importance of understanding the terms and conditions of your insurance policy and ensuring that you have the necessary coverage in place.
Despite 76% of homeowners claiming to have read and fully understood their policy's terms and conditions, the survey found that 54% of homeowners are still concerned that certain types of damages or incidents may not be covered. Additionally, 39% of homeowners admitted to being confused about the different types of coverage offered by their policy.
To add to the confusion, only 50% of homeowners are aware that service line coverage can be purchased through their homeowners insurance. While it is possible to purchase this coverage through a utility company, homeowners may need to purchase coverage for each line through each provider. The survey found that 53% of homeowners purchased service line coverage through their homeowners insurance policy, while 36% purchased it through a utility provider.
Furthermore, 66% of homeowners mistakenly believe that service line coverage can be added to a homeowners policy at any time. In reality, it can only be added at the time of policy renewal.
Brad Lemons, Senior Vice President of Product and Underwriting for Nationwide's personal lines insurance, emphasizes the importance of service line coverage, stating, "Service line coverage can often be overlooked but an incident will lead to a costly repair that falls on the homeowner. Service line coverage is one of the best value coverage endorsements because unexpected damage to any of these lines will likely cost thousands of dollars to repair."
In light of these findings, it is crucial for homeowners to consider adding service line coverage to their home insurance policies. Consulting with an independent agent can help homeowners determine if their service lines are covered and assist in finding the right coverage for their needs.
In conclusion, homeowners need to be aware of their responsibility for service line damage and ensure they have the appropriate coverage in place. Ignorance of this fact can lead to significant financial burdens in the event of a service line issue. By understanding the terms and conditions of their insurance policies and exploring options for service line coverage, homeowners can protect themselves from unexpected and costly repairs.