Water service line insurance: is it worth it if you have lead pipes?

If you're responsible for your service line, a line protection plan can pay for repair or replacement when it leaks or breaks. It usually won't pay to replace a working line just because it's lead.

What these plans are

Service line warranties (from companies such as HomeServe, often marketed through your utility or city) cost roughly $5 to $15 a month and cover repairs to the water line from the curb to your house, up to a yearly limit, when it fails.

What they usually don't cover

• Replacing a line that works, only because it's lead or galvanized
• Problems that existed before you enrolled (often a 30-day waiting period)
• Costs above the yearly limit, interior plumbing, and some restoration

When a plan makes sense

If your utility won't replace the line for years and your old line is likely to fail, a plan can protect you from a surprise bill, since a failed lead line is usually replaced with copper during the repair. Iowa City even pays half the cost of a service line insurance plan. Read the terms for lead and pre-existing exclusions before you buy.

Homeowners insurance

Standard homeowners policies cover sudden water damage, not replacing old pipes. Some insurers sell a service line endorsement for a few dollars a month.