There are several insurance companies that do offer the underground utility coverage on 1-4 family rentals. Sometimes also called “Service Line Coverage” this is for all underground utilities – water, sewer, gas, electric. It’s only on 1-4 family rentals at this time because those are considered “personal lines” insurance policies. When a rental property has 5+ units in it, that is considered a commercial lines insurance policy.
We’ve already had 6 claims on this underground utility coverage and the average claim is $7,200. And with a $500 deductible at cost of $20 per year, this is a no-brainer for any savey real estate investor. We are re-writing insurance policies from insurance companies that do NOT offer this coverage to one’s that do. They WANT this coverage, especially with the older stock of inner city homes.
So as a provider of insurance policies for landlord’s, I highly recommend this coverage for every landlord we insure. I don’t think we have 1 landlord client that said “I don’t want that coverage”. They all do and so should you.