which connects, directly or indirectly, a building or structure on the "residence premises" to a source for municipal or commercial utility service.

b. Includes, but is not limited to, a:

(1) Water line;
(2) Sewer line;
(3) Gas line;
(4) Steam line;
(5) Electric transmission line; or
(6) Communication transmission line.

c. Does not, however, include any portion of a:

(1) Liquid fuel tank or liquid fuel system;
(2) Septic tank or septic system; or
(3) Water well or well system.

Analysis

The definition is straightforward, and includes a wire, cable, pipe, conduit, or related equipment that is on the "residence premises" but outside of the building and below the surface of the ground. The line must connect directly or indirectly to a building. Therefore, a line connected to a detached garage or even a gazebo would be covered.

The definition provides a list of what is included as a "utility line", but the list is not exhaustive. It includes but is not limited to water, sewer, gas, steam, electric transmission, or communications.

Not included, however, is a liquid fuel tank or liquid fuel system, septic tanks or systems, or water wells or systems. These systems are not part of municipal services; anyone living on a well or septic tank is not tied in to the utility and must handle any issues on his own.

SECTION I – PROPERTY COVERAGES

With respect to the coverage provided by this endorsement, Paragraph D. Coverage D – Loss Of Use (Paragraph C. Coverage D – Loss Of Use in HO 00 06) is replaced by the following:

D. Coverage D – Loss Of Use
1. Additional Living Expense
If a loss covered under Utility Line Expense Coverage makes that part of the "residence premises" where you reside (the "residence premises" in HO 00 06) not fit to live in, we cover any necessary increase in living expenses incurred by you and residents of your household who are:

a. Your relatives; or
b. Other persons under the age of 21 and in your care or the care of a resident of your household who is your relative;
so that your household can maintain its normal standard of living.

Payment will be for the shortest time required to repair or replace the damage or, if your household permanently relocates, the shortest time required for your household to settle elsewhere.

2. Fair Rental Value
If a loss covered under Utility Line Expense Coverage makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the fair rental value of such premises less any expenses that do not continue while it is not fit to live in.
Payment will be for the shortest time required to repair or replace such premises.
3. Loss Or Expense Not Covered We do not cover loss or expense due to cancellation of a lease or agreement.
4. Limit Of Liability The limit of liability for Coverage D:

a. Is 10% of the Limit Of Liability for Utility Line Expense Coverage shown in the Schedule;
b. Is the total limit for coverage in 1. Additional Living Expense and 2. Fair Rental Value; and
c. Does not increase the Limit Of Liability for Utility Line Expense Coverage shown in the Schedule.

The periods of time under 1. Additional Living Expense and 2. Fair Rental Value above are not limited by expiration of this Policy.

Analysis

The endorsement modifies the additional living expense, fair rental value, loss or expense not covered and limit of liability sections. Changes are minor, and make these coverages available in the event of covered loss to the utility line making the residence or the part of the residence that is rented not fit to live in. Fair rental value payment is for the shortest time to repair or replace, or for additional living expenses, the shortest time to repair or replace, or to relocate, whichever is faster.

The 2022 update changed the endorsement so that it matches the Homeowners form regarding expenses for residents of the household who are the insured's relatives or under the age of 21 and in the care of an insured or resident relative of the insured so that the household can maintain its normal standard of living.

Loss or expense due to cancellation of a lease is not covered. The limit of liability for these loss expenses under coverage D is 10 percent of the limit shown in the schedule, the total limit for additional living expenses and fair rental value, and does not increase the limit of liability for utility expense line coverage shown in the schedule. For example, an insured has coverage scheduled at $10,000 and has a $9,500 loss, which also displaces the insured for several weeks. The additional living expenses for the insured for that period of time is $1,500. The endorsement limits additional living expenses to 10 percent of the scheduled coverage, which would be $1,000. The additional living expenses exceeded the 10 percent and also pushes the claim over the scheduled limit. Therefore, the insured only receives $500 for his additional living expenses, since those expenses do not increase the scheduled amount available.

ADDITIONAL COVERAGES

a. We will pay for loss caused by a Peril Insured Against to a "utility line" which is:

(1) Owned by you; or
(2) If not owned by you, your responsibility under a:

(a) Municipal; or
(b) Commercial;
utility service contract or agreement.

This includes reasonable and necessary expenses incurred for excavating, remediating, repairing, or restoring land or structures other than buildings.

b. With respect to the coverage provided by this endorsement, Peril Insured Against means direct physical loss caused by any of the following:

(1) Wear and tear, marring or deterioration;
(2) Rust or corrosion;
(3) Leakage;
(4) Constriction or blockage;
(5) Bulging, rupture, bursting or explosion;
(6) Implosion or collapse;
(7) Disconnection, separation or detachment;
(8) Failure of pressure or vacuum equipment;
(9) Mechanical failure;
(10) Electrical failure, including arcing; or
(11) Trees, shrubs or plants.

This coverage is additional insurance.

Analysis

The Utility Line Expense Coverage is added as an additional coverage to the homeowners policy. It provides coverage for named perils for losses to utility lines owned by the insured or lines that are the responsibility of the insured under a municipal or commercial service agreement. If the municipality is solely responsible for the lines, then this coverage will not apply. Coverage includes reasonable and necessary expenses for excavating, remediating, restoring, or repairing land or structures other than buildings.

The covered perils are then listed, and are mostly self-explanatory including wear and tear, blockage, mechanical failure, disconnection, and most notably trees, shrubs and plants. Tree roots will always grow towards water, and it is common for tree roots to grow into pipes as they age and create blockages.

With respect to the coverage provided by this endorsement, Paragraph 10. Ordinance Or Law (Paragraph 9. Ordinance Or Law in HO 00 06) is replaced by the following:

10. Ordinance Or Law

a. You may use up to 10% of the limit of liability that applies to Utility Line Expense Coverage for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates:

(1) The construction, demolition, remodeling, renovation or repair of that part of a covered building or other structure damaged by a Peril Insured Against;
(2) The demolition and reconstruction of the undamaged part of a covered building or other structure, when that building or other structure must be totally demolished because of damage by a Peril Insured Against to another part of that covered building or other structure; or
(3) The remodeling, removal or replacement of the portion of the undamaged part of a covered building or other structure necessary to complete the remodeling, repair or replacement of that part of the covered building or other structure damaged by a Peril Insured Against.

b. You may use all or part of this Ordinance Or Law Coverage to pay for the increased costs you incur to remove debris resulting from the construction, demolition, remodeling, renovation, repair or replacement of property as stated in Paragraph a. above.
c. We do not cover:

(1) The loss in value to any covered building or other structure due to the requirements of any ordinance or law; or
(2) The costs to comply with any ordinance or law which requires any "insured" or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants in or on any covered building or other structure.

Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

This coverage does not increase the Limit Of Liability for Utility Line Expense Coverage shown in the Schedule.

Analysis

The coverage for ordinance or law is the same as what is found in the homeowners form, except that it allows for 10 percent of the scheduled limit to be used for ordinance or law issues, and not 10 percent of the entire policy limit of liability. This should be kept in mind when choosing limits; an insured may think he only needs $10,000 for a loss but may need more to cover ordinance or law or additional living expenses.
Not covered is loss in value of a building due to ordinance or law requirements or any costs to monitor, test for, clean up, or otherwise address pollutants.

SECTION I – CONDITION
1. With respect to the coverage provided by this endorsement, the following is added to

Paragraph A. Insurable Interest And Limit Of Liability:
However, our total liability for any one loss for Utility Line Expense Coverage will not be more than the Utility Line Expense Coverage Limit Of Liability shown in the Schedule. This is the most we will pay regardless of the number of:

a. Claims; or
b. "Utility lines".

2. With respect to the coverage provided by this endorsement, Paragraph D. Loss Settlement is replaced by the following:

D. Loss Settlement
In this Condition D., the terms "cost to repair or replace" and "replacement cost" (the terms "repaired" or "replaced" in HO 00 06) do not include the increased costs incurred to comply with the enforcement of any ordinance or law, except to the extent that coverage for these increased costs is provided under the Ordinance Or Law Coverage of this endorsement.
We will pay the cost to repair or replace, without deduction for depreciation, but not more than the least of the following amounts:

a. The Utility Line Expense Coverage Limit shown in the Schedule;
b. The replacement cost of the damaged "utility line" with property of like kind and quality and for like use; or
c. The necessary amount actually spent to repair or replace the damaged "utility line".
All other provisions of this Policy apply.

Analysis

The conditions are straightforward and explain that the carrier is not liable for more than the limit scheduled on the endorsement. There is no deduction for depreciation. The settlement is for no more than the least of the limit shown in the schedule, the replacement cost of the damaged line with like kind and quality, or the actual amount spent to repair or replace the line.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.