Backing Up Your Insureds with Buried Utility Lines Coverage

Many towns and cities are beginning to succumb to aging infrastructure, specifically to underground utilities. Now more than ever, homeowners can benefit from adding Buried Utility Lines Coverage (BULC) to their policy.

Homeowners are often unaware that they may be responsible for the underground piping, lines and wiring connecting their home to the utility source. In addition, many homeowners are unaware the standard homeowners policy provides no coverage for damages such as these. BULC Coverage offers protection to cover the cost to repair damaged exterior underground utility lines due to a disruption in service.

RMIC’s BULC coverage is available for policy forms HO2, HO3 and HO5. These types of policies can be endorsed at inception or renewal to provide $10,000 of coverage with a modest $500 deductible. This does not include coverage for loss or damage to any:

1. Septic systems, including leach fields, cesspools, septic tanks, pumps, motors or any pipes that run from a septic tank to any leach field;

2. Wells, including well casings, pumps or motors;

3. Sprinkler system pumps, motors or heads; or

4. Heating and cooling systems, including heat pumps.

WHAT DOES IT COVER?

• Property Damage

• Excavation Costs

• Expediting Expenses

• Additional Living Expenses

• Upgrade to New Materials

DESCRIPTION OF DISRUPTION IN SERVICE

1. Mechanical breakdown

2. Artificially generated electrical current

3. including insulation breakdown

4. Wear and tear, marring, deterioration,

5. hidden decay, rust or corrosion

6. Freezing, including frost heave and thaw

7. Weight of equipment, animals or people

WHAT DOES BURIED UTILITY LINE MEAN

1. Underground pipes, including any underground connections, valves or equipment associated with such underground pipes; or

2. Underground wires, including any underground connections or equipment associated with such underground wires that convey a utility service such as water, sewage, electricity, gas, steam or communication services.

Buried utility lines claims average $5,000 in damages and more! Review the form in Rockford Express once added to the policy for the full coverage form and exclusions.