Last Updated on February 4, 2021 by
Gas line insurance is not necessary since most of what it offers is already included in your homeowner’s insurance. Ensure you check with your insurer before spending your money on what you are already paying for. Most times, what you already have is much better compared to a gas line or single utility line covers. Homeowners insurance also covers accidents, while utility line insurance doesn’t.
Most homeowners have expressed concern on social media over emails they received mostly from CenterPoint energy and other insurance companies. In these emails, the company claims to have spent $1million on repairs for they clients gas lines. This company offers a gas line insurance coverage and homeowners are required to pay $5.49 per month and get $8,000 for repairs on gas lines. The concern for most homeowners is how necessary is this insurance plan. Do you need it? Who should consider it? We break it down for you and make it easier for you to understand and make an informed decision.
Some homeowners can choose to buy the gas line insurance, especially when there’s a high risk of damaging the gas line. If you are having much activity, such as construction in your home that might affect your gas line, then you can consider getting this cover. Some insurance companies offer combined utility line insurance. If you decide to insure your gas line, we highly recommend this type of cover since it saves you all the repair costs.
What Is A Gas Line/ Utility Line Insurance?
Gas line coverage is a type of insurance that covers gas pipes that supply natural gas to your house. This insurance covers both underground pipes and those above the ground. In case of damage, the insurance company caters for repairs to restore the supply of gas to your kitchen. Utility line insurance works the same way, only that it covers more resources. Most utility line insurance covers electric wires, phone lines, gas, water, and sewage connectivity.
Utility line maintenance and repair can be quite costly, and insurance helps you prepare for such instances. Some homeowner’s insurance packages actually cover utility lines, and it is important to check with them before buying any extra coverage.
It would be best if you also considered what part of your gas line you are responsible for. In most cases, the gas company is responsible for the gas line up to the street outside your house. You are only responsible for what’s going into your home from the meter. If the line you are responsible for is small, the repairs may be simple and less expensive, and quite rare. In such a scenario, you may opt to forgo the insurance and save up an emergency amount.
A sure way to determine if you need gas line insurance for your house is to do the math. We all buy insurance hoping never to use it but consider how much it would cost if you need a repair. For example, if your underground gas line fails and can cost you around $7-$10k to have it repaired, and you are required to pay about $50, or below per year in insurance, you can opt for the insurance. It would take 100 years of paying premiums to cover just one gas line fail or leak in such a scenario. If your insurance premiums are unreasonably priced, you can stay without the insurance since it’s unlikely for the gas line to fail.
What Does A Normal Homeowner’s Insurance Cover?
Homeowners’ insurance policies cover a variety of damages that happen in the entire home and not just the service lines. Some packages offer coverage for damage that affects a home’s structural integrity, the foundations, furniture, and furnishings. The damage could be brought about by windstorms, tornadoes, fire, and such.
Some homeowner’s insurance coverage also covers service lines by default. If your policy covers service lines, then there’s no need to get gas line insurance as it is pretty much the same thing.
What’s Covered By Utility Line Coverage?
Utility line coverage is an insurance policy that’s mostly purchased separately from your home owner’s insurance and provides coverage to utility lines that connect your home to wider utility grids. These policies provide coverage from damage that could be caused by various disasters. They cover damage from rodents, wear and tear, and environmental damages.
Rodents can make your experience as a homeowner stressful when they get to your utility lines. They burrow underground and can damage service lines leading to your house. Utility line insurance covers this possibility and gives you peace of mind. Incase of rodent damage, your insurance will cover repairs and eradication of the rodents. If you buy a house in an area prone to rodents, you should consider adding this policy to your homeowner’s insurance.
Some homeowner’s insurance coverage does not cover regular wear and tear damage, but utility line insurance does. Wear and tear refer to damage that occurs to your service line from everyday use. Wear and tear damage is always prone to happen regardless of your efforts to protect your utility lines. If you live in a place where utility lines are exposed to harsh weather or usage, utility line insurance is unavoidable for you.
Gas lines and other utility lines can also be damaged by environmental factors such as wind or overgrown tree roots. Always ensure your utility line insurance covers such eventualities as it takes off much weight from your shoulders.
How Do I Buy Utility Line Insurance?
Depending on your situation, location, and contents of your home owner’s insurance, utility line insurance can be valuable and worth paying for. You can get utility line insurance by adding it to your home owner’s policy or getting it from your service provider. We recommend adding it to your policy since it is cheaper and more effective.
Check with your homeowner’s insurance company to find out if they offer service line insurance by default. Some companies offer this cover s an optional add on which you choose to add to your existing policy. There are many benefits of choosing to add utility insurance to an existing policy instead of opening another account. Here are some of the benefits:
1. Its easier to work with the company you are familiar with
2. You don’t need to add another bill or open n account for utility lines only
3. It’s cheaper since you only need to add about $15 per month to your regular premiums and have all your service lines covered
You can also opt to buy insurance from your service providers. This works by purchasing gas line insurance from the gas company, electric line insurance from the electricity company and so on. The main advantage of choosing this type of insurance is that you can select which lines you want to be covered. If your homeowner’s insurance excludes a particular line, you can cover it using this method. The downside to this option is that it is expensive in the long run. For more information on how you can go about it, consult the local service provider of the line you want to insure.
Conclusion
Gas line insurance or utility line insurance should be included in your home owner’s insurance. It covers all repair and maintenance costs in case of damage on your utility lines. These lines rarely get damaged, but when they do, the cost for repair is hefty. Homeowners need to ensure that their insurance covers this cost. Some homeowners’ insurance packages only cover a portion of the cost, but that goes a long way in relieving the burden. If your package doesn’t cover utility lines, it is mostly because the cost of the repairs is not much.
You wouldn’t need gas line insurance if it included in your homeowner’s insurance package. If it is not included, try to find out which part of the gas line is your responsibility and estimate the repair cost in case of damage. If the repair cost is way less than what you’ll pay on premiums, you won’t need gas line insurance. Instead, have a significant amount of money set aside for emergency repairs. If premiums are less compared to the cost of repair, then you will need an insurance plan.
In case you need utility line insurance, first consult with your home insurance company. Working with familiar people makes it easier, and you can negotiate a better deal. This consultation will also help you determine whether you need extra coverage. You will find that you don’t and you will save money you would have paid to another company in most cases. After consulting with your company, you can go ahead and ignore all those emails about getting gas insurance. We hope this post enlightens you to understand your homeowners’ insurance and when you need to ensure utility lines.
