Buying a home is the largest purchase you will make in your life. While it is an investment, there are costs that will come along with it and factors affecting those costs. The age of the home, weather conditions, previous upkeep, and location are all factors of future home repair. As a real estate agent in Utah, my suggestion is to budget 1% of your home value in repairs yearly. If your home is valued at $300,000, be sure to budget $3,000 per year in ancillary repairs. However, there is a looming repair that many homeowners face that lurks beneath the surface that can cost you a large sum of money. This uncertain cost can easily be avoided with service line insurance in Utah.
Service Line Insurance In Utah For Your Home
It is very easy to get caught up in the color of your cabinets, the size of your garage, and what size desk you will buy for your office. It is also even easier to forget what is going on below your home and the utility lines that allow your home to run properly. The city you live in may be responsible for allowing you to have access to these resources, but as a homeowner, you assume responsibility to maintain your services line from the exterior of your home to the public utility connection. If they aren’t being maintained, the damage and cost can be upwards of $15,000! However, there is a simple insurance policy to help you avoid that cost.
How Service Line Insurance Can Save You Thousands
Many homes in Utah will come with large trees of some sort, especially in northern Utah. While they are gorgeous to look at and have the ability to raise your home value, they can be a liability.
Let’s say you purchase a home in Herriman, Utah with a beautiful tree in the backyard. This tree has been there for decades and is growing incredibly strong roots. These roots are so strong that they grow through your sewer line and it has caused a severe leak. Now, you will have sewer runoff in your backyard (ew!) and will have to call a crew to excavate your backyard. They will then let you know your service lines need to be repaired and/or replaced, and you are stuck with a potential bill around $15,000. While the average price of this repair hovers around $8,500, there are reports of some paying $15,000 or more for this unfortunate circumstance.
So What Does Service Line Insurance Cover?
Service line insurance in Utah is incredibly low investment in comparison to the costs of these repairs. Service line insurance typically covers the following:
- Power lines and electrical wiring
- Steam piping
- Telephone and cable lines
- Water pipes
- Waste disposal
- Sewer piping
- Private wells and septic systems
If any of these are damaged from things such as rodents, ground freeze, corrosion, or tree roots, you can qualify to have the expenses covered less any deductibles. Also, if your house is uninhabitable due to the damages, your insurance may pay for the cost of your hotel and other costs.
Why I Recommend Service Line Insurance in Utah
The sole reason I would recommend purchasing this is peace of mind. It is very easy to forget about what you can’t see, and having an unexpected expense like this can drastically affect your finances. Many of the properties I encounter have trees with large roots that can cause these types of repairs. Also, with the volatile weather we can have in Utah, these services lines can deteriorate much quicker.
This repair can turn into a complete nightmare like these guys encountered.
If you are considering purchasing service line insurance in Utah, there are many different insurance agencies that offer it. I have found America Family Insurance great to work with, especially my good friend Allen Johnson. He will walk you through your policy with clear details and be ready in the unfortunate event of a claim. The cost and coverage of service line insurance are the following:
- Service Line Insurance – $20 a year & it covers up to $10,000 in damages. The deductible is $500.
- The Equipment Breakdown is $30 a year and up to $100,000 in coverage. The deductible is $500.
Jen’s Final Thoughts
The purchase of a home is an exciting day and an incredible investment. The day when you get a repair bill isn’t an exciting day. Protecting your home with an insurance policy like service line insurance in Utah can be a stress saver and financial lifesaver is something were to go wrong.
I couldn’t recommend service line insurance in Utah enough to protect your home.
Let’s Work Together To Find A Home You Love!