Does Homeowners Insurance Cover Sewer Line Replacement or a Sewer Backup?

Does homeowners insurance cover sewer line replacement?

Rarely, when the line simply wore out. Insurers generally treat a pipe’s slow decline as maintenance, and standard policies commonly exclude:

• Wear, tear and age, such as cast iron that corroded and scaled from the inside, vitrified clay joints that opened up, or Orangeburg fiber pipe that deformed.
• Tree roots that grew in through joints and cracks.
• Settling and earth movement, which cause sags (bellies) and separated joints. The Colorado Geological Survey calls expansive soil Colorado’s most significant geologic hazard and lists sewer lines among the things it damages.
• Gradual leaks and damage from lack of maintenance.

Depending on its wording, a policy may cover sudden, accidental damage, such as water damage inside the house from a sudden break. Even then, many policies pay for the resulting damage rather than the pipe. Wording varies widely, so read your policy or ask your agent before you assume either way.

Here is how the common types of coverage usually compare:

Coverage	Usually helps with	Usually does not cover
Standard homeowners policy	Some sudden, accidental damage, depending on the policy	Wear and tear, roots, age, settling or sewer backup
Water backup endorsement	Damage to the house and belongings from a backup	Repairing the sewer line itself
Service line coverage endorsement	Repairing or replacing a buried service line, including digging, up to a limit	Costs above its limit, and anything it excludes
Home warranty	Some repairs from normal wear, per the contract	Often the buried line, roots or excavation

Home warranties and protection plans are not insurance

A home warranty is a service contract that pays for repairs to systems and appliances that fail from normal use. Its sewer coverage is often narrow: many contracts cover only drain lines inside the foundation, sell the buried line as an add-on, or exclude roots and excavation. Sewer line protection plans sold by mail are typically service contracts too. Read the sewer section of any contract before you rely on it.

Who owns the sewer line, and who pays?

Insurance aside, the owner usually pays. Fort Collins Utilities makes the property owner responsible for maintaining and repairing the sewer service line from the home to the city main in the street, including any damage it causes. If a blockage is between the house and the main, the owner pays for cleanup and repair, including damage to the street or driveway. If the blockage is in the city’s main, the city clears it and pays for janitorial cleanup of the affected area.

So during a backup, call Fort Collins Utilities at 970-221-6700 to check the main, because the answer decides who pays. Loveland, Windsor and Berthoud also put the service line on the owner. Our guide to who is responsible for the sewer line has the town-by-town rules, and what causes basement sewer backups covers prevention.

Is sewer line replacement tax deductible?

Generally not, for the home you live in, since repairs to a personal residence are not deductible. A full replacement may count as a capital improvement that adds to your home’s cost basis, which can reduce taxable gain when you sell, while routine repairs and clearing a clog generally do not. Rentals and home offices follow different rules. Keep the invoice, and talk to a tax professional about your situation.